Overstock.com (OSTK) Stock Pops On Financial Results

Overstock.com OSTK Stock News

Overstock.com Inc (NASDAQ: OSTK) is running for the top in the market this morning, trading on gains of more than 20% in the premarket hours. The gains come after the company reported its financial results for the first quarter, showing impressive growth even in the face of the COVID-19 pandemic. Here’s what’s going on:

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OSTK Stock Is Running Up On Positive Financial Results

As mentioned above, Overstock.com released its financial results for the first quarter this morning, and the results were positive. During the quarter, the company generated $352 million in net revenue. On a year over year basis, this figure was down 4%, however the rest of the story was good news.

OSTK said that gross profit worked out to be $76 million. That’s 21.6% of total revenue, an improvement of 169 basis point year over year. Not to mention, net loss shrunk by $23 million year over year to $16 million, or $0.40 per share.

Adjusted EBITDA improved as well, climbing 31% year over year. Finally, non-GAAP free cash flow climbed by $40 million with the company’s cash and equivalents coming in at $141 million at the end of the quarter.

In a statement, Jonathan Johnson, CEO at OSTK, had the following to offer:

In a time of great uncertainty, Overstock is performing well. Our retail business, which was already on track to achieve its first quarter plan before the COVID-19 crisis hit full bore, has benefited from an increased demand for home furnishings and other key product categories from customers looking to shop from the safety of their homes. The Overstock Retail team is executing its disciplined strategy. I expect to see continued progress against our goal of realizing sustainable, profitable growth. Many of our Medici Ventures blockchain companies are also progressing toward having usable products in production.

COVID-19 has altered the landscape for many. Our retail business’s April sales are up over 120% year over year and that growth has occurred mainly in our key home furnishings categories. Several of our blockchain companies have received public attention because the problems they are solving using blockchain technology have been brought into the spotlight in the current pandemic. Areas like mobile voting, digital identity, digital currency, and supply chain tracking have become more important in our COVID-19 world. I am looking forward to the increase in tZERO platform activity I believe will result from the upcoming issuance of the Overstock digital dividend. I will provide a more detailed report on the impact COVID-19 has had on our businesses and other corporate updates on our earnings call.

I thank our shareholders for their continued support. I am confident in our teams’ ability to execute and to be the innovative leader in the e-commerce and blockchain arenas.

This News Is Exciting

All in all, this is great news for Overstock.com. While revenue fell slightly, all other numbers are going up in a big way.

Importantly, there are key statements made by the CEO here as well. The company’s blockchain technology is getting quite a bit of attention as it helps to solve key problems with COVID-19.

He also said that April sales were up 120% year over year, pointing to a change in landscape led by the novel coronavirus.

All in all, things are going well at OSTK and that’s exciting for investors!

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