Q1 2024 Liquidity Services Inc Earnings Call
Operator: Welcome to the Liquidity Services Incorporated's first quarter fiscal year 2024 financial results conference call. My name is Norma, and I'll be your operator for today's call. Please note that this conference call is being recorded. At this time, all participants are in a listen-only mode.
Welcome to the liquidity services incorporated first quarter fiscal year 'twenty 'twenty four financial results Conference call. My name is normal and I'll be your operator for today's call. Please note that this conference call is being recorded at this time all participants are in a listen only.
Operator: Later, we will conduct a question-and-answer session. On the call today are Bill Angrich, Liquidity Services Chairman and Chief Executive Officer; and Jorge Celaya, its Executive Vice President and Chief Financial Officer. They'll be available for questions after their prepared remarks. The following discussion and responses to your questions reflect Liquidity Services Management's views as of today, February 8, 2024, and will include forward-looking statements. However, actual results may differ materially.
Later, we will conduct a question and answer session.
On the call today are bill angry liquidity services, Chairman and Chief Executive Officer, Jorge Celaya, its executive Vice President and Chief Financial Officer, there'll be available for questions. After their prepared remarks.
The following discussion and responses to your questions reflect liquidity services management's views as of today.
You weren't H 'twenty 'twenty four and will include forward looking statements.
Actual results may differ materially additional information about factors that could potentially impact our financial results is included in today's press release and in filings with the SEC Inc.
Operator: Additional information about factors that could potentially impact financial results is included in today's press release and in filings with the SEC, including the most recent annual report on Form 10-K. As you listen to today's call, please have a press release in front of you, which includes Liquidity Services' financial results, as well as metrics and commentary on the quarter. During the call, Liquidity Services management will discuss certain non-GAAP financial measures. In its press release and filings with the SEC, one of which is posted on its website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of the measures with comparable GAAP measures, as available.
The most recent annual report on Form 10-K.
As you listen to today's call. Please find the press release in front of you, which includes liquidity services' financial results as well lets metrics and commentary on the quarter.
During the call liquidity services management will discuss certain non-GAAP financial measures.
And its press release and filings with the SEC one of which is posted on its website and you will find additional disclosures regarding these non-GAAP measures, including the reconciliations of those measures with the comparable GAAP measures.
Available liquidity services management also use a certain supplemental operating data as a measure of certain components of operating performance, which they also believe is useful for management and investors.
Bill Angrick: Liquidity Services Management also uses certain supplemental operating data as a measure of certain components of operating performance, which they also believe is useful for management and investment. This supplemental operating data includes gross merchandise volume and should not be considered a substitute for or superior to GAAP results. At this time, I'll turn the conference over to your, Presentation over to Liquidity Services Chairman and Chief Executive Officer Bill Anger.
This supplemental operating data includes gross merchandise volume and should not be considered.
For or superior to GAAP results at this time I'll turn the conference over to your first tier.
The presentation over to liquidity services, Chairman and Chief Executive Officer Bill angry.
Bill Angrick: Good morning and welcome to our Q1 earnings call. I'll review our Q1 performance and the progress of our business segments, and Jorge Celaya will provide more details on the quarter. We recorded 13% organic growth and consolidated GMB this quarter, led by our GovDeal segment, which benefited from strong bidder engagement on our modernized govdeals.com marketplace platform. Additionally, we recorded strong subscriber growth in our Machinio segment, as customers continue to be delighted by our Machinio Systems dealer management software solutions, which deliver outstanding ROI by automating and improving asset management, marketing, and sales activities. Of note, Machinio was selected by XGMG eCommerce, an Asia-based multinational corporation, to facilitate the sale of more than 6,000 refurbished construction machinery assets as part of their reconditioned machine refurbishment program to remarket and extend the life of these assets.
Good morning, and.
And welcome to our Q1 earnings call I'll review, our Q1 performance and the progress of our business segments.
And next Jorge Celaya will provide more details on the quarter.
We recorded 13% organic growth and consolidated GMT this quarter led by our golf deal segment.
Which benefited from strong bidder engagement on our modernized got deals dot com marketplace platform.
Additionally, we recorded strong subscriber growth and our machinery segment.
Customers continue to be delighted by our machine ecosystem dealer management software solutions, which deliver outstanding ROI by automating and improving asset management marketing and sales activities.
<unk> was selected by X M G e-commerce.
And Asia based multinational corporation to sell it.
The sale of more than 6000, refurbish construction machinery assets.
As part of their recondition machine refurbishment program to remarket and extend the life of these assets.
Bill Angrick: This is just one recent example of our successful expansion into the Asia-Pacific region, which more than doubles the addressable market for our machinio segment. However, growth and profitability in our RFTG and tax segments were impacted during Q1 by an inferior mix. Product and Delays in Selected International Sales Events at Quarter End, respectively. However... We are seeing an improvement in our RSHE product mix as we enter the seasonally high fiscal second quarter, and most of the delayed projects in our CAG segment are expected to close during the fiscal second quarter, resulting in a resumption of year-over-year growth. We continue to provide strong liquidity for our sellers across all segments, as the number of auction participants on our platform grew by 14% year-over-year during Q1, and the number of completed transactions grew 12% year-over-year.
This is just one recent example of our successful expansion into the Asia Pacific region, which more than doubles, the addressable market for our machinery segment.
Growth and profitability and are are C. G.
CAG segments were impacted during Q1 by an inferior mix of product and delays in selected international sales events at quarter end respectively.
However.
We are seeing an improvement in our RSA G product mix as we enter the seasonally high fiscal second quarter and most of the delayed projects in our CAG segment are expected to close during the fiscal second quarter, resulting in the resumption of year over year growth.
We continue to provide strong liquidity for our sellers across all segments.
As the number of auction participants on our platform grew by 14% year over year during Q1, and the number of completed transactions grew 12% year over year.
Bill Angrick: We continue to invest in our multi-channel buyer base to drive higher recovery, including expanding our all-surplus deals marketplace, which provides consumers direct access to value-priced merchandise and expands our addressable market in the retail supply chain. We are pleased to report that we have successfully rolled out our all-surplus deals marketplace offering in five markets, and we are setting new records for completed transactions, revenue, and profitability week over week in this channel as we move through the current quarter. In support of our long-term strategy, we continue to expand our market share in our GOV, DEALS, and CAD segments through the acquisition of Sierra Auctions, which strengthens and accelerates our position as the leading online platform for the sale of vehicles, equipment, and surplus assets for government and commercial fleet sellers. In summary, we remain the trusted provider of choice for commercial and government clients in the circular economy and continue to deliver outstanding value for our customers.
Continue to invest in our multichannel buyer base.
To drive higher recovery.
Including expanding our all surplus deals marketplace, which provides consumers direct access to value priced merchandise and expands our addressable market in the retail supply chain. We are pleased to report that we have successfully rolled out our all surplus deals marketplace offering in five markets and we.
We're setting new records for completed transactions revenue and profitability week over week in this channel as we move through the current quarter.
In support of our long term strategy, we continue to expand our market share and our Gov deals in CAG segments through the acquisition of Sierra auction.
Which strengthens and accelerates our position as the leading online platform for the sale of vehicles equipment and surplus assets for government and commercial fleet sellers.
In summary, we remain a trusted provider of choice for commercial and government clients in the circular economy and continuing to deliver outstanding value for our customers.
Jorge A. Celaya: As companies of all sizes and industries seek to better manage their assets, inventories, and supply chains to drive efficiencies, they are turning to the liquidity services platform. We intend to capitalize on our strong buyer base and business pipeline across our segments to deliver improved growth and profitability in our current fiscal second quarter. In parallel, we continue to make multi-year investments to expand our market share and enhance our platform's capabilities to drive long-term growth for liquidity services shareholders. Our results will benefit from these investments in our expanded operational capacity. Our capital-efficient business with strong operating cash flow, approximately $107 million in cash with zero debt, provides us with ample financial flexibility to execute our plans. We thank all of our team members across Liquidity Services for their dedication to our mission to power the circular economy to benefit sellers, buyers, and the planet. I'll now turn it over to Jorge for more details on the quarter. Good morning.
As companies of all sizes and industries seek to better manage their assets inventories and supply chain to drive efficiencies. They are turning to the liquidity services platform.
We intend to capitalize on our strong buyer base and business pipeline across our segments to deliver improved growth and profitability in our current fiscal second quarter.
In parallel we continue to make multiyear investments to expand our market share and enhance our platforms capabilities to drive long term growth for liquidity services' shareholders.
Our results will benefit from these investments in our expanded operational capacity.
Our capital efficient business with strong operating cash flow of approximately $107 million in cash with zero debt provides us ample financial flexibility to execute our plans.
We thank all of our team members across liquidity services for their dedication to our mission.
Howard that circular economy, the benefits sellers buyers and the planet.
And I'll now turn it over to Jorge for more details on the quarter.
Good morning, we completed the first quarter of fiscal year, 2024, with $305 $9 million in GM being up 13%.
Jorge A. Celaya: We completed the first quarter of fiscal year 2024 with $305.9 million in GMV, up 13% from $270.8 million in the same quarter last year. We saw very strong performance for our GovDeals and Machinery segments this fiscal first quarter. While finishing the overall quarter within guidance, albeit at the low end of guidance due to delays in various tagged segments, high margin projects, which were mostly already finalized this January, and a slower than anticipated improvement in our retail segment from the more recent product mix trends related to lower value supply in the market. Our fiscal first quarter revenue was $71.3 million, down 1% from $72.3 million in the same quarter last year, reflecting consignment GMG at 89%, The mix of our retail pregnant supply was a factor in the higher mix of confinement GMB.
From $278 million in the same quarter last year.
We saw very strong performance for our golf deals and machinery segments. This fiscal first quarter.
While finishing the over all quarter within guidance, albeit at the low end of guidance due to delays in various CAG segment.
High margin projects, which were mostly already finalized this January and a slower than anticipated improvement in our retail segment from the more recent product mix trends related to lower volume supply in the market.
Our fiscal first quarter revenue was $71 $3 million down 1% from $72 $3 million in the same quarter last year, reflecting.
And consignment GMB at 89% tying it all time high.
The mix of our retail segment supply was a factor in the higher mix of consignment GOP.
Jorge A. Celaya: Our fiscal first quarter consolidated profitability, including GAAP EPS of 6 cents, non-GAAP adjusted EPS of 14 cents, and Non-Gas Production EBITDA of $7.3 million. While our operating expenses were well controlled during the quarter, the percentage drop in revenue and direct profit compared to the same quarter last year reflected the CAG and retail savings delays and product mix respectively impacting these results. We ended the quarter with $107 million in cash, cash flows, and social investments.
Our fiscal first quarter consolidated profitability included GAAP EPS of <unk> <unk> non.
non-GAAP adjusted EPS of <unk> 14 cents.
And non-GAAP adjusted EBITDA of $7 $3 million, while our operating expenses were well controlled during the quarter the percentage drop in revenue in direct profit compared to the same quarter last year reflected the CAG and retail segments delays and product mix, respectively impacting these results.
Jorge A. Celaya: We performed $1.2 million of share repurchases during the quarter. And at the beginning of January, we completed our acquisition of Sierra Auctions for $13.5 million in cash paid at closing in this fiscal second quarter. We continue to have zero deaths and $25 million of available borrowing capacity under accredited facilities, specifically comparing segmented rewards and defaults from this fiscal first quarter to the same quarter last year. Our GovFuel segment was up 18% on GOV, 17% on revenue, and up 17% on segment direct profit, driven by increased availability of vehicles and strong bidder engagement on our newly modernized govfuel.com marketplace platform. Machinio was up 18%, and its segment direct profit was up 19% with a continuing increase in subscribers and pricing for Machinio advertising and Machinio system dealer management products.
Of share repurchases during the quarter.
Although at the beginning of January we completed our acquisition of Sierra auction for $13 $5 million in cash paid at closing in this fiscal second quarter.
We continue to have zero debt and $25 million of available borrowing capacity under our credit facility.
Specifically comparing segment results.
From this fiscal first quarter to the same quarter last year.
Our <unk> segment was up 18% <unk>, 17% on revenue and up 17% and segment direct profit driven by increased availability of vehicles and strong bidder engagements on our newly modernized Gulf deals marketplace.
<unk> was up 18% in its segment direct profit was up 19% with continuing increase in subscribers and pricing for machine your advertising and machine Eurosystem dealer management products.
Jorge A. Celaya: Our RFPG segment was up 3% on GOP, down 5% on revenues in the mix, and down 4% on segments that are profitable. As the GMD increase was driven by lower take-rate, low-touch container solutions, while the Retailer Purchase Program and some retailer consignment activity continues to reflect the impact of the lower value product mix compared to last year. Despite the delay in projects during December, our tax segment was up 9% on GMD, yet down 70% of revenues and 80% of direct, of the right segment profit as a more diversified GMP mix with increases in global energy and industrial consignment sales were not enough to offset the prior year fiscal first quarter's high-margin international purchase transaction. Gap net income for the first quarter was $1.9 million, resulting in diluted gap earnings per share Non-cap!
Our <unk> segment was up 3% on <unk>.
Down 5% on revenue due to mix and down 12% and segment direct proppant.
The <unk> increase was driven by lower take rate low touch consignment solutions.
While retailer purchase programs and some retailer consignment activity continued to reflect the impact of the lower value product mix compared to last year.
Despite the delays in projects during December our CAG segment was up 9% of GMB, yet down 70% of revenue and 18% of direct.
On direct segment profit as a more diversified <unk> with increases in global energy and industrial consignment sales were not enough to offset the prior year fiscal first quarter's high margin international purchase transaction.
GAAP net income for the first quarter was $1 $9 million, resulting in a diluted GAAP earnings per share of six times compared to 12 cents per share last year.
non-GAAP adjusted EPS for this first quarter was $14 19 down from 19% in the same quarter last year.
Jorge A. Celaya: Adjusted EPF for the first quarter was $14,000. Down from 19 cents in the same quarter last year, while non-GAAP-adjusted EBITDA of $7.3 million this quarter was down from $9.8 million in the same quarter last year, reflecting the CAG and retail segment results, and fiscal year 2024 outlooks, continues to anticipate year-over-year growth for the second quarter with improvements and consolidated results expected for the second half of fiscal 2024 compared to the first half of fiscal 20 The second quarter of fiscal year 2024 guidance includes continued strong performance for our GovDeal segment and further improvement in the Gov Deal project for our acquisition of Piera Austin this quarter. Our tax segment also looks to have a stronger sequential quarter for this fiscal second quarter as it captures contractions delayed from this past fiscal first quarter.
While non-GAAP adjusted EBITDA of $7 $3 million this quarter was down from $9 $8 million in the same quarter last year, reflecting the CAG retail segment results.
Our fiscal year 2020 for outlook.
10 years to anticipate year over year growth for the second quarter with improvement in consolidated results expected for the second half of fiscal 2024 compared to the first half of fiscal 2024.
The second quarter of fiscal year 2024 guidance includes continued strong performance for our <unk> segment.
And further improvement in the <unk> segment from our acquisition of Sierra auction this quarter.
Our CAG segment also looks to have a stronger sequential quarter for this fiscal second quarter as it captures transactions delayed from this past fiscal first quarter.
Jorge A. Celaya: We also expect a traditional sequential seasonal growth effect for our RFPG segment during this coming quarter's post-holiday return season. Compared to last year, RFPG expects continued expansion of its lower-tash consignment programs, while a mix of products from purchasing consignment programs is expected to begin to improve sequentially, compared to last year, these will continue to receive a higher mix of the lower value flows from certain seller programs. Consolidated operating expenses are currently expected to increase from the Sierra Auction acquisition, mainly in operation... and variable expenses related to top line growth overall. We currently anticipate our consolidated revenues as a percent of GMD to reflect our current level of consignment needs and remain in the lowest mid-20% range, which can also vary based on our mix of asset categories from time to time.
We also expect the traditional sequential seasonal growth in fact for our <unk> segment. During this coming quarters post holiday return season.
Compared to last year <unk> expects continued expansion of its lower touch consignment programs, while the mix of product across some purchase and consignment programs is expected to begin to improve sequentially.
Compared to last year. These will continue to receive a higher mix of the lower value flows from certain smaller programs.
Consolidated operating expenses are currently expected to increase from the Sierra auction acquisition, mainly in operations expense and variable expenses related to top line growth overall.
We currently anticipate our consolidated revenue as a percent of GMP.
To reflect our current levels of confinement mix.
Maybe in the low to mid 20% range.
Which can also vary based on our mix of asset categories transact.
Jorge A. Celaya: We expect our segmented direct profit as a percentage of total revenue to increase year-over-year, remaining at a similar percentage sequentially to our fiscal first quarter 2024 results. Management Guidance for the Tracking Quarter of Fiscal Year 2024 is as follows. We expect GMD to range from $320 million to $350 million. Gap net income is expected in the range of $3 million to $6 million with a corresponding gap earnings per share ranging from 9 cents to 19 cents per share. We estimate non-GAAP adjusted EBITDA to range from $9 million to $12 million. Non-GAAP-adjusted diluted earnings per share is estimated in the range of 17 pence to 27 pence per share.
We expect our segment direct profits as a percentage of total revenues to increase year over year remaining at a similar percentage sequentially.
Fiscal first quarter 2024 results.
Management guidance for the second quarter of fiscal year 2024 is as follows.
We expect <unk> to range from $320 million to $350 million.
GAAP net income is expected in the range of $3 billion to $6 billion with a corresponding GAAP diluted earnings per share ranging from <unk>.
To <unk> 19 per share.
We estimate non-GAAP adjusted EBITDA to range from $9 million to $12 billion.
non-GAAP adjusted diluted earnings per share is estimated in the range of 17 to 27 cents per share the.
Operator: The GAAP and non-GAAP EPS guidance assumes that we have 32 million fully covered and weighted average shares outstanding for the second quarter of fiscal year 2024. Thank you, and we will now take your questions. Thank you. To ask a question, you'll need to press star 1-1 on your telephone.
The GAAP and non-GAAP EPS guidance assumes that we have 32 million fully diluted weighted average shares outstanding for the second quarter of fiscal year 2024.
Thank you and we will now take your questions.
Thank you.
To ask a question you will need to press star one on your telephone to withdraw your question. Please press star one again, please wait for your name to be announced please standby, while we compile the Q&A roster one moment for your first question. Please.
Operator: To withdraw your question, please press star 1-1 again. Please wait for your name to be announced. Please stand by while we compile the Q&A list. One moment for our first question. Our first question comes from the line of Gary Prestopino with Barrington Research. Your line is now open.
Our first question comes from the line of Gary <unk> with Barrington Research. Your line is now open.
Gary Frank Prestopino: Hi, good morning, Jorge and Bill. A couple of questions really regarding Sierra, the acquisition you made. First of all, the cash payment for that is not reflected in the year-end balance of the cash, right? Since it closed on January 1, am I mistaken? That's right, so it does not reflect it.
Hi, good morning or AML.
A couple of questions really regarding <unk>.
Sierra.
The acquisition you made first of all the cash payment for that that is not reflected in the year end balances of cash right. Since it closed on January one or am I mistaken on that.
That's correct.
So it does not it does not reflect on 107 million as of December 31, We made the acquisition of January right. I just wanted to make sure of that and then can you give us some idea of the GMB generation.
Gary Frank Prestopino: Well, $107 million is December 31st. You made the acquisition in January. Right. I just wanted to make sure of that. And then can you give us some idea of the GMV generation of Sierra Auctions? And does it have a very similar?
See our auction.
And does it have a very similar.
Bill Angrick: kind of direct profit margin contribution, or will it, that the GovDeals business has currently? The business is very similar to GovDeal. 100% or actually 100% confinement, you know, very high gross margins. This is an example of, you know, our favorable position to be a consolidator in the market. This is a sub-$100 million GMB business that we can quickly scale to, you know, $100 million plus in that territory. Arizona is a market that's benefiting from in-migration from California and other places, a business opportunity that leverages increasing investment in infrastructure, vehicle fleets, retirement, and upgrading of assets.
Kind of.
Direct profit margin contribution or will it that the Gov deals business has currently.
The business very similar to <unk>.
Deals.
100% virtually 100% consignment very high gross margins.
This is an example of.
Our favorable position to be a consolidator in the market. This is a sub $100 million G&P business that we can quickly scale $200 million plus in that territory.
Arizona is a market that's benefiting from in migration.
From California, and other places.
Our business.
Opportunity.
<unk>, increasing investment in infrastructure vehicle fleets retirement and upgrading of assets. So we have a two pronged growth opportunity there.
Bill Angrick: So we have a two-pronged growth opportunity. There are a number of long-standing government customers going back to the 1980s. Additionally, there are many commercial fleet owners that really covet the liquidity that we bring, both through FIERA's legacy operations and now the GovDeal buyer base. And so we're quickly integrating Gary's piece, the firebase and operational activities, to grow a $100 million-plus business in a territory that we had some presence in but really have been under-penetrated in. And Gary, I would also just point out... W. O'Connor, very good quarter, this past quarter, without the TR acquisition, and we expect to have another double-digit growth order next quarter without fear. Jared De Creter and Bill Pratt, I'm giving an indication on the side, but it is accretive that GovDeals is still performing without performing, extremely welcome.
There are a number of long standing government customers could going back to the 19 eighties.
Additionally, there are many commercial fleet owners that.
Really covered the liquidity that we bring both through <unk> legacy operations and now the Gov deals buyer base and sort of quickly integrating Gary piece.
These buyer base and operational activities.
To grow a $100 million plus business in a territory that we've had some presence, but really have been underpenetrated in.
Hey, Gary I would also just point out.
<unk> had a very good.
Quarter, this past quarter without the Sierra acquisition and we expect.
Good to have another double digit growth quarter.
Next quarter without here.
Sarah is accretive, but as Bill said is.
Give you an indication of the size, but it is accretive for Gov deals is still without it performing.
Extremely well.
Gary Frank Prestopino: Okay, so I guess, I assume that you're not at liberty to give us any idea of how the GMV generation of this... No, we're not disclosing that, but it's being integrated with and into our GovDeals marketplace for government accounts and our CAG segment for commercial fleet sellers. Okay. Um, and then, um...
Okay. So I guess I assume that you are not at Liberty to give us any idea of what the GMB generation of this one.
No, we're not disclosing that but it's being integrated with and into our Gov deals marketplace for government accounts and our CAG segment for commercial fleet.
Sellers.
Okay. Okay.
And then.
Bill Angrick: This whole issue with retail and the sector where you're having lower ticket items flowing through on GMV. Is that something that? You know, given what the comparables would be throughout last year, that you would expect to continue to see for fiscal 24, you said it's getting a little bit better, but is it still a situation where, because of headline news, a sluggish economy, or whatever, you continue to think that you'll see a smaller amount of higher-ticket items flowing through your GMV platform? I think we are, And we've said this for I think we've normalized that, and we're comfortable executing in the current environment for the balance of the year, Gary.
This whole issue with the retail.
Sector, where youre, having lower lower ticket items.
Flowing through on GMB.
Is that something that.
Given what the comparable would be.
Throughout last year that you would.
Expect to continue to see.
For fiscal 'twenty four you said, it's getting a little bit better but is it still a situation where because of I don't know headline news sluggish economy or whatever you continue to think that youll see.
A less amount of higher ticket items flowing through.
<unk>.
Platform.
I think we're.
And we've said this for last few quarters, we've seen at reset and consumer behavior.
And at more frugal consumer with respect to <unk>.
Significant high ticket purchasing online I think we'd normalize that.
And we're comfortable executing in the current environment for the balance of the year Gary.
Bill Angrick: I think we've been effective in, you know, moving product through the right channels to improve, margins and, you know, we're needed to sort of adjust our service levels, you know, with clients to make sure that we're getting a good return on, sort of our operational investments, and we've sort of opened up a new front of growth through this ultra-fueled consumer marketplace channel which extracts more value for the goods and which leverages our current infrastructure of seven distribution centers so that we're not, this is not sort of a traditional ground-up expansion, this is really leveraging an existing auction marketplace platform, and Operational Capability to essentially move recovery up and share that margin with our seller clients. So I think we're very well positioned.
I think we've been effective in.
Moving product through the right channels to improve.
Margins and where needed sort of adjust our service levels.
With clients to make sure that we're getting a good return on.
Our operational investments.
And we've sort of opened up a new front of growth through this also put steels consumer marketplace channel, which extract more value for the goods and which leverages our current infrastructure.
Seven distribution centers.
So that we're not this is not sort of a traditional.
Ground up expansion. This is really leveraging an existing auction marketplace platform.
And operational capability to essentially move recovery up and share that margin with our seller clients. So I think we're very well positioned in fact were added one of the big trade shows this week.
Gary Frank Prestopino: In fact, we're out at one of the big trade shows this week, and we had very strong receptivity to our multi-channel positioning. As we mentioned, I think all companies, including retail supply chain companies, e-commerce retailers, omni-channel retailers, the vendors, and suppliers, are all looking for efficiencies because they're all dealing with sort of that reset and consumer behavior. So many of them have reduced warehouse capacity and reduced infrastructure, and we step in and provide them with a lot of capabilities to be more efficient. And that allows us to grow our market share. And I think in the long term, we're going to be a winner in that market. Okay, and then just lastly, I didn't see this, I apologize for this if I missed it, because I had a couple of companies to report on this morning, but did you do any kind of share purchases in the quarter? And at these levels, would you have an appetite for your stock at the post office? to release the burnings.
Very strong receptivity to our multichannel positioning and as we mentioned I think all companies, including.
Retail supply chain companies ecommerce retailers.
Omnichannel retailers, the vendors, who supply them, they're all looking for efficiencies because they're all dealing with toward that reset in consumer behavior. So many of them have reduced warehouse capacity reduced infrastructure and we step in and provide them a lot of capabilities to be more efficient.
And that allows us to grow our market market share and I think in the long term, we're going to be a winner in that market.
Okay, and then just lastly, I didn't see.
I apologize if I missed it because I have a couple of companies report. This morning, but did you do any kind of share repurchases in the quarter.
At these levels would you have an appetite for your stock.
Bill Angrick: Well, as far as allocation of capital is concerned, we... We do have a repurchase program, and we are continuing to execute that, Gary. We'll be executing that just throughout the year, including this quarter. So the answer is yes to that, and I'll defer to Jorge on any other details on what was done in the last quarter. Yeah, Gary, I pointed it out in the remarks, 1.2 million, and Sherry Purchases. Sorry, I messed up. Okay, thank you very much.
Q1, the release of earnings here.
Well as far as allocation of capital we.
We do have a repurchase program.
We are continuing to execute that Gary will be executing that you'll throw.
Throughout the year, including this quarter so.
The answer is yes to that and I'll defer to Jorge on any other.
Other details on what was done in the last quarter, Yes, Gary pointed out in the remarks $1 2 million.
Dollars and share repurchases this past.
December okay.
Sorry, I missed that okay. Thank you very much.
Operator: Thank you. One moment for our next question and the New York Times. Thank you. Our next question comes from the line of Jorge Sutton with Craig Howe. Their line is now open.
Thank you.
One moment for our next question.
Okay.
Our next question comes from the line of George Sutton with Craig Hallum. Your line is now open Inc.
George Frederick Sutton: Thank you. Bill, you mentioned the opportunity to double your TAMs through Asia. Can you talk about what the selling strategy is into that market? Are you purely going direct? Or are you going through partners?
Thank you Bill you mentioned the opportunity to double your Tam through Asia can.
Can you talk about what the selling strategy is into that market or are you purely going direct or are you going through partners can you just give us a sense of how you attack that.
Bill Angrick: Can you just give us a sense of how you attack that? Thank you for the question. Leveraging the current infrastructure that we have in Asia, we have been in China for over a decade serving CAG relationships. These are multinational companies that, you know, need asset management and sales support. We have a very strong leader in Asia.
Thank you for the question.
<unk>.
Leveraging.
Gary excuse me Craig.
George Who's meet the current infrastructure that we have in Asia, we have been in <unk>.
Trainer for over a decade, serving CAG.
Relationships. These are multinational companies that need.
<unk> management and sales support.
We had a very strong leader in Asia.
Bill Angrick: You know, ex-McKinsey consultant has been with us for over, I think now, almost 15 years. So what we did is we took advantage of our physical presence there and added a regional sales organization to extend the Machinio platform into those markets, and we sell directly. Now, we sell very efficiently through a variety of sort of digital inside sales practices, Jorge, and that allows us to hit the ground running quickly and ensure profitable growth. The reality is that there is a big interest in being able to move equipment, used equipment, outside of the region, and that's tapping into machinio's presence, you know, throughout the U.S., North America, Europe, a lot of buyers, and we' Adoption of the solution, albeit it's a small base that we're starting with, but we had some revenue already on the Machinio platform with subscribers before we opened up the sales presence there. And now we're just redoubling the value proposition and getting that in front of more interesting relationships. And these are not small companies. For example, the example I gave, XMG, is a pretty large player.
Ex Mckinsey consultants has been with us for over almost 15 years. So what we did is we took advantage of our physical presence there and added.
Our regional sales organization to extend the machinery O.
<unk> platform into those markets and we sell direct now we sell very efficiently.
Through a variety of sort of digital insight sales practices.
Practices, George and that allows us to hit the ground running quickly.
And and ensure profitable growth.
The reality is that there is a big interest in being able to move equipment used equipment.
Outside of the region.
And that's tapping into machining his presence.
Throughout the U S North America Europe.
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And we're seeing good.
Adoption of the Solutia, albeit a small base that we're starting with but we had some revenue already.
On machining platform with subscribers before we opened up a sales presence there and now we're just redoubling.
The value proposition and getting that and try to more.
Interesting relationships and these are small these are not small companies and <unk>.
Example, I gave that CMG is a pretty large player and again it feeds that ecosystem you know more supply was more buying activity and people know now that we're open for business.
George Frederick Sutton: And again, it feeds that ecosystem. More supply equals more buying activity, and people now know that we're open for business. You know, in mainland China and Asia, there's more product availability, so we expect that organic growth to accelerate over time.
In mainland, China, and Asia, and there's more product availability. So we expect that organic growth to accelerate over time.
Jorge A. Celaya: So I wonder if Jorge could just walk through the CAG, any sort of quantification of the CAG deals that slipped in the quarter, what's closed thus far in the Q2 quarter, and how much of that do you ultimately expect to get into? So, Jorge, I'll tell you what I said in the remarks, that most of the deals... There was, I can tell you, there were probably a half dozen, and most of them were transacted in January, and we expect most of them to be in this next quarter, maybe one or one and a half, partially we'll work into the next quarter, but we expect CAG to have a very strong... March 4th, right? The one coming up?
So I wondered if jorge could just walk through the CAG.
Any sort of quantification of the CAG deals that slipped in the quarter, what's closed thus far in the Q2 quarter and how much of that do you ultimately expect to get in Q2.
So George I'll say, what I said in the remarks that most of the deals. They were as I can tell you there was probably a half dozen and most of them.
Have been transacted in January and we expect most of them.
To be in this next quarter, maybe one or one and a half partially will slip into the next quarter.
But we expect CAG to have a very strong.
Our march quarter coming up.
George Frederick Sutton: Not only because we had already planned that we were going to have a pretty solid quarter, but then you compare that with, you know, to catch up on these, and really, they were all December transactions, but, you know, that tag from time to time has these splittages, especially when they're international, more complex products. Well, again, a half dozen transactions equating to about how much in GMV or is there a problem? You called it out as one of the reasons for some of the challenges in the first quarter. I'm just curious.
Not only because we had already planned that it was going to have a pretty solid quarter.
But then you compound that with.
The catch up on leads and really there were all December transactions, but.
From time to time is the slippage is especially.
Especially when they're international.
More complex transactions.
Yeah.
Well again half dozen transactions.
Equating to about how much in G M V or is there a.
You called it out as one of the reasons for some some of the challenges in the first quarter I'm just curious.
Jorge A. Celaya: I'm not going to go into transaction quantification, Jorge, but what I'm calling out is the shortfall, I guess, to be... if you want to call it that, on those two particular diagnoses from what we expected at least.......
I'm not going to move transaction quantification George.
But what I'm, calling out is on the.
The shortfall I guess to be.
If you want to call it that on those two particular segments as from what we expected at least.
It was those delays in those transactions and then as I said some of the.
Bill Angrick: It was those delays and those transactions, and then, as I said, some of the... Mark it, issues in RICO. Remember, this is all happening in a public marketplace, too, so one can see what's being listed and sold, you know, in real time in the marketplace. And we've had some really good results, you know, in the current quarter, Jorge, that illustrate the types of transactions that, you know, have rolled over. But I think it's... It's fair to say that, you know, absent some delays, we wouldn't have been at the low end of the range. We would have been near the high end of the range, you know, collectively.
Some of the product mix.
Market.
Issues in.
In retail.
Remember that this is all happening in a public marketplace. Two so one can see whats being listed and sold.
Real time in the marketplace and we've had some really good results in.
In the current quarter George that are illustrating.
The types of transactions that.
Rolled over but.
It's it's fair to say that.
Absent some delays we would have been at the low end of the range would have been near the high end of the range collectively.
Bill Angrick: So, you know, those are things that we continue to manage. And, again, we're in the long game. I mean, we're about building, you know, the highest recovery, the most liquid buyer base, making sure that we're covering, you know, every industry with its growth opportunities. And I know in your world, it's very important to have a precise model, you know, quarter to quarter.
So those are things that we continue to manage it.
Again, we're in the long game.
We're about building the highest recovery the most liquid buyer base, making sure that we're covering.
Every industry with its growth opportunities than.
I know in your world, it's very important to have a precise model quarter to quarter in our world, We're really looking to deliver the best value to clients.
Bill Angrick: In our world, we're really looking to deliver the best value to clients, you know, on a continuous basis. And, you know, we're in the long game. And, again, we're in the long game. And I know in your world, it's very important to have a precise model, you know, quarter to quarter.
On a continuous basis and.
That's our goal.
How we invest that's how we think about the growth strategy.
Bill Angrick: And I know in your world, it's very important to have a precise model, you know, quarter, that's our goal, that's how we invest, that's how we think about, you know, the growth strategy, and I think the combination of some of the modernization that we've done with GovHeals and the opportunity to integrate, you know. A lot of the tools that everyone in every industry is utilizing, you know, sort of AI tools and, you know, machine-driven. One-to-one marketing, you know, that's all helping us win in the marketplace. And we're excited about, you know, the business pipeline and, you know, feel like we've got the right services and a very differentiated marketplace experience to win and convert, you know, more opportunities in retail and the capital assets segment. And We talked about Machinio. So I think we're well-positioned for what the needs are currently in the market, and that's why we're going to continue to grow.
I think the combination of some of the modernization that we've done with guard deals.
With the opportunity to integrate.
Yes.
A lot of the tools that everyone in every industry utilizing sort of AI tools.
Machine driven.
One to one marketing that's all helping us win in the marketplace and we're excited about the business pipeline.
I feel like we've got the right services and are in a very differentiated marketplace experience too.
Win win and convert more opportunities in retail and in the capital asset segment.
We.
We talked about machine, yet so I think we're well positioned to what the needs are currently in the market and that's why we're going to continue to grow.
Bill Angrick: Bill, this was almost the first conference call in America that did not include the term AI, but you did slip it in, so congratulations. That's it for me, an unintended interruption of the street. Thank you. Thank you, George. Thank you for your questions. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.
Gotcha Bell. This was almost the first conference call in America that did not include the term AI, but she did slip it in so congratulations.
That's it for me.
That was a.
And unintended interruption of the streak.
Okay.
Thanks.
Thank you George.
Thank you for your question.
This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
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Okay.
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