Company Overview - Beyond, Inc. reported a name change from Overstock.com, Inc. to Beyond, Inc. and transferred its stock listing to the New York Stock Exchange under the ticker symbol "BYON" as of November 6, 2023[17]. - The company achieved sales primarily from customers in the United States, with no single customer accounting for more than 1% of total net revenue during the years ended December 31, 2023, 2022, and 2021[19]. - Beyond, Inc. offers a diverse range of home products, with millions of items available to meet evolving customer preferences[19]. Customer Experience - The company emphasizes a simplified customer experience through a user-friendly interface and a dedicated customer care team[18]. - Beyond, Inc. employs various sales and marketing strategies, including digital channels and traditional advertising, to engage its retail consumer audience[22]. - Beyond, Inc. leverages proprietary technologies and strategic partnerships to enhance its operational capabilities and customer experience[24]. Employee Relations - Beyond, Inc. has approximately 830 full-time employees as of December 31, 2023, with a focus on maintaining good employee relations and high competition for qualified personnel[32]. - The company maintains competitive compensation programs to attract and retain employees, linking compensation to overall company performance[36]. - The average employee tenure is six and a half years, with customer service and warehouse departments averaging six years[40]. - The company provides a comprehensive benefits package, including medical, dental, vision insurance, and a flexible work schedule[41]. - In January 2024, the company expanded benefits to include unlimited flexible time away for all exempt employees[41]. - The company offers a 401(k) matching program, matching dollar for dollar up to 6% of employee savings[38]. Diversity and Inclusion - The company is committed to diversity and inclusion, aiming to create a workplace that values unique backgrounds and perspectives[34]. - The company emphasizes diversity and inclusion training to strengthen its workforce and foster an inclusive environment[43]. - The company has established relationships with universities and industry groups to attract diverse talent[39]. Talent Management - The company actively manages talent acquisition and retention, recruiting from 23 states and the Republic of Ireland[39]. - The company’s focus on human capital management is seen as a competitive advantage, with a dedicated board committee reviewing hiring trends and engagement[46]. Financial Overview - The company has a recorded value of $155.9 million in equity securities as of December 31, 2023, down from $296.3 million in 2022[179]. - The company’s loan agreements carry a fixed blended annual interest rate of 4.45%, mitigating direct financial statement risk from interest rate changes[176]. - The company actively cultivates relationships with manufacturers, distributors, and suppliers to ensure a diverse product offering and flexibility in supplier selection[21].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001 ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-4979 ...

Overstock.com, Inc. (NASDAQ:OSTK) Q2 2023 Earnings Call Transcript July 27, 2023 8:30 AM ET Company Participants Lavesh Hemnani - Head of Investor Relations Jonathan Johnson - Chief Executive Officer Adrianne Lee - Chief Financial Officer Dave Nielsen - President Conference Call Participants Seth Sigmund - Barclays Thomas Forte - D. A. Davidson Curtis Nagle - BOFA Anna Andreeva - Needham and Company Operator Good day and thank you for standing by. Welcome to the Q2 2023 Overstock.com Earnings Conference Cal ...

Financial Performance - Net revenue for Q1 2023 was $381.14 million, a decrease of 29% from $536.04 million in Q1 2022[19] - Gross profit for Q1 2023 was $89.71 million, down from $125.21 million in Q1 2022, reflecting a gross margin of 23.5%[19] - Operating loss for Q1 2023 was $8.36 million, compared to an operating income of $12.45 million in Q1 2022[19] - Net loss for Q1 2023 was $10.31 million, compared to a net income of $10.12 million in Q1 2022, resulting in a loss per share of $0.23[19] - The company reported a decrease in total operating expenses to $98.08 million in Q1 2023 from $112.76 million in Q1 2022[19] - For the three months ended March 31, 2023, Overstock.com reported a net loss of $10.3 million compared to a net income of $10.1 million for the same period in 2022[26] - Total cash provided by operating activities was $20.0 million, a decrease from $33.2 million in the prior year[26] - The accumulated deficit increased to $184.1 million as of March 31, 2023, compared to $126.5 million at the end of the previous year[25] - Cash, cash equivalents, and restricted cash at the end of the period totaled $374.9 million, down from $493.5 million a year earlier[26] - The company experienced a significant increase in accounts payable, which rose to $10.2 million from $4.3 million year-over-year[26] Assets and Liabilities - Total current assets increased to $421.25 million as of March 31, 2023, compared to $414.51 million at the end of 2022[16] - Total liabilities rose to $246.88 million as of March 31, 2023, up from $232.72 million at the end of 2022[16] - Cash and cash equivalents were $374.71 million as of March 31, 2023, slightly up from $371.26 million at the end of 2022[16] - Total assets as of March 31, 2023, amounted to $348,570,000, an increase from $335,872,000 as of December 31, 2022[36] - Total outstanding debt as of March 31, 2023, was $37,100,000, net of capitalized debt issuance costs[50] - Present value of lease liabilities as of March 31, 2023, was $6,854,000, with total lease payments amounting to $7,389,000[56] Shareholder Information - The company issued 268 shares of common stock upon vesting of restricted stock, up from 243 shares in the previous year[25] - Total shares of common stock outstanding increased to 45.2 million from 42.7 million year-over-year[25] - The company repurchased no shares during the current quarter, compared to $25.2 million in share repurchases in the same quarter last year[26] - No shares were repurchased under the stock repurchase program during the three months ended March 31, 2023, with $19.9 million available for future repurchases[66] Expenses - Sales and marketing expenses as a percentage of revenue increased from 10.9% in Q1 2022 to 12.3% in Q1 2023, primarily due to higher performance marketing expenses[87] - Technology expenses totaled $30.5 million for the three months ended March 31, 2023, a decrease of $2.4 million compared to the same period in 2022[88] - Sales and marketing expenses for the three months ended March 31, 2023, were $47.0 million, a decrease of 19.6% compared to $58.5 million for the same period in 2022[103] - General and administrative expenses were $20.5 million for the three months ended March 31, 2023, reflecting a 3.6% decrease from $21.3 million in the same period in 2022[109] - Other expense, net increased significantly to $7.4 million for the three months ended March 31, 2023, compared to $114,000 for the same period in 2022, primarily due to a $6.9 million increase in loss from equity method securities[110] Legal and Compliance - The company is currently involved in multiple legal proceedings, which could materially affect its business and financial position[58] - The company intends to vigorously defend against ongoing legal actions, including a consolidated securities class action lawsuit[59] - The company continues to cooperate with the SEC regarding subpoenas related to insider trading policies and communications with executives[58] - The company has made certain indemnities and guarantees, but is unable to estimate potential exposure under these items[63] - The company has not recorded any liability for indemnities and guarantees in its consolidated balance sheets[63] Market and Strategy - Overstock.com is focusing on international market expansion and evolving business practices, including exiting non-home categories[13] - The strategy to exit non-home categories has been a factor in the decreased order activity and revenue[86] - International net revenues were less than 1% of total net revenues for both the three months ended March 31, 2023, and 2022[96] - The company continues to monitor macroeconomic trends, including inflation and consumer sentiment, which may impact future performance[89] - The company is actively monitoring macroeconomic conditions, including inflation and rising interest rates, to manage liquidity and operational efficiency[116] Tax and Interest - The effective tax rate for the three months ended March 31, 2023, was 21.9%, up from 17.1% in the same period in 2022, mainly due to increased tax deficiencies from stock-based compensation[113] - The company has a fixed blended annual interest rate of 4.45% on its loan agreements, resulting in no direct financial statement risk associated with changes in interest rates[131] - Most sales and operating expenses are denominated in U.S. dollars, indicating minimal exposure to foreign currency risk[132] - The company is facing inflationary pressures due to increases in commodity, shipping, energy, and labor costs, which could impact financial performance if not managed effectively[133]

Sales and Revenue - The company reported that sales for the years ended December 31, 2022, 2021, and 2020 were almost entirely to customers located in the United States, with no single customer accounting for more than 1% of total net revenue[19]. Employee and Talent Management - As of December 31, 2022, the company had approximately 1,050 full-time employees and has never experienced a work stoppage[35]. - In 2022, the company hired a total of 208 new employees, with 180 in non-customer service roles and 28 in customer service and warehouse departments[42]. - The average employee tenure is six years, with customer service and warehouse departments having an average tenure of four and three-quarters years[42]. - The company offers a competitive compensation package, including base salary, short-term bonuses, and long-term equity incentives, to attract and retain talent[38]. - The company actively recruits talent from twenty-one states and has established relationships with universities and industry groups to enhance its talent acquisition efforts[41]. - The company has invested in employee development through online resources, mentoring programs, and subsidizing higher education opportunities[44]. - An annual training program on Diversity and Inclusion is conducted for all employees to promote a culture of inclusion[45]. - The company emphasizes a results-driven, inclusive, and collaborative corporate culture to enhance employee engagement[47]. Partnerships and Product Offering - The company maintains relationships with approximately 2,600 partners as of December 31, 2022, to ensure a continuous assortment of product offerings[17]. - The company focuses on enhancing its product assortment to meet evolving customer trends, increasing the number of items offered[18]. Marketing and Customer Service - The company utilizes a variety of sales and marketing methods, including online campaigns and brand advertising, to target its retail consumer audience[22]. - The company emphasizes superior customer service through its app, website, and customer service department, staffed with dedicated professionals[23]. Diversity and Inclusion - The company has a commitment to diversity and inclusion, aiming to improve representation at all levels and foster an inclusive culture[36]. Logistics and Operations - The company’s logistics capabilities are tailored to the furniture and home furnishings category, developed over many years of e-commerce experience[17]. Financial Performance and Market Conditions - The company recorded a value of $296.3 million in equity securities as of December 31, 2022, down from $342.7 million in 2021, indicating market volatility impacts[179]. - The company is exposed to inflationary pressures due to increases in commodity and shipping prices, which could affect financial performance if not managed effectively[178]. Employee Benefits - The company offers a comprehensive benefits package, including medical, dental, vision insurance, health savings accounts, and a 401(k) matching program[43]. - In January 2023, the company expanded its benefits to include pelvic care benefits for women and reduced copayments for mental health office visits[43]. Executive Team - As of February 24, 2023, the executive team includes key positions such as Chief Executive Officer, Chief Financial Officer, and Chief Marketing Officer, with significant experience in their respective fields[50][51][52].

Financial Data and Key Metrics Changes - Revenue declined by 34% year-over-year in Q4 2022, totaling $405 million, primarily due to competitive pressures and the strategic removal of non-home products from the site [22][24] - Gross profit was $90 million in Q4 2022, a decrease of $49 million compared to the prior year, with a gross margin of 22.1%, down 54 basis points year-over-year [25] - Adjusted EBITDA was $7 million in Q4 2022, a decrease of $21 million from the previous year, resulting in an adjusted EBITDA margin of 1.6% [27] Business Line Data and Key Metrics Changes - The transition to a 100% home retailer was completed, with home-only revenue declining by 30% in Q4 2022, consistent with the third quarter [24][31] - The active customer base decreased to 5.2 million, driven by reduced spending on home-related goods and a shift in consumer preferences [28] - Average order value (AOV) improved by 4% year-over-year to $215, although it declined slightly compared to Q3 due to a shift in product assortment [29] Market Data and Key Metrics Changes - The furniture and home furnishings market is fragmented, with a total addressable market exceeding $400 billion, presenting opportunities for market share growth [11] - The competitive landscape saw increased discounting and promotional activities, impacting gross margins and overall sales performance [22][24] Company Strategy and Development Direction - The company is focused on sustainable profitable market share growth, leveraging its asset-light business model to maintain gross margins despite competitive pressures [34][35] - New strategies include enhancing the mobile app experience, expanding loyalty offerings, and improving product findability on the website [40][42][44] - The company aims to capture market share by adding national branded and giftable products, particularly targeting competitors struggling with excess inventory [12][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2022 performance was below expectations but expressed confidence in the company's ability to recover market share and improve top-line performance in 2023 [7][35] - The macroeconomic environment, including inflation and a weak housing market, is expected to influence performance throughout the year, with a more optimistic outlook for the second half of 2023 [36][39] Other Important Information - The company ended 2022 with a strong balance sheet, holding $371 million in cash and only $34 million in long-term debt, resulting in a net cash position of $337 million [13] - Share repurchases totaled $80 million in 2022, alongside direct investments in portfolio companies like tZERO and GrainChain [14][18] Q&A Session Summary Question: Were competitor markdowns disruptive to sales in 2022? - Management acknowledged that while some disruptions occurred, maintaining a smart value proposition was essential, and suppliers often adjusted their prices accordingly [48][49] Question: Expectations for gross margins in 2023? - Management indicated that gross margins might trend lower in the first half of 2023 due to ongoing inventory rationalization but expected recovery later in the year [51][52] Question: Comparison of today's home e-commerce market with past periods? - Management noted similarities with past downturns, suggesting that Overstock is well-positioned to benefit as consumers become more price-sensitive [54][55] Question: Insights on average order value (AOV) and Overstock Day events? - Management highlighted that AOV was impacted by promotional discounting and seasonal shifts, while Overstock Day was successful in driving mobile app adoption [57][61] Question: Plans for customer engagement and reactivation strategies? - Management emphasized the new co-branded credit card initiative aimed at enhancing customer loyalty and engagement, alongside efforts to reactivate lapsed customers [69][70]