What happened
After Overstock.com (OSTK +1.60%) published its quarterly results early Thursday morning, its share price took a more than 9% hit in the trading session that followed. The company's third-quarter figures revealed notable declines in several key metrics.
So what
For the period, Overstock booked total net revenue of $460 million, which was a steep 33% below its tally in the prior-year quarter. Equally notable was its drop in active customers to almost 5.8 million from more than 8.6 million in Q3 2021. Non-GAAP (adjusted) net profit also eroded, falling to just under $5.9 million ($0.13 per share) compared to over $23.3 million a year earlier.
To a certain extent, analysts had anticipated Overstock's business would be down. On average, they were estimating just over $479 million on the top line and $0.11 per share for adjusted net profit.
In its earnings release, Overstock pointed to shifting consumer spending preferences and macroeconomic challenges such as inflation as factors behind its weaker results.
NYSE: OSTK
Key Data Points
Now what
Overstock management did not provide any financial guidance for future quarters, but it did sound a hopeful note about the near-term future, talking up a new national ad campaign launched earlier this month that it hopes will lure in customers.
"We are managing through near-term challenges while focusing on efforts that I expect will help drive long-term growth," CEO Jonathan Johnson said in the earnings press release.
