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Beyond(BYON) - 2024 Q3 - Quarterly Report
BYONBeyond(BYON)2024-10-25 20:12

Financial Performance - Total net revenue for the three months ended September 30, 2024, was 311,428,adecreaseof16.6311,428, a decrease of 16.6% compared to 373,313 for the same period in 2023[14]. - Gross profit for the nine months ended September 30, 2024, was 220,502,down24.5220,502, down 24.5% from 292,156 in the same period of 2023[14]. - Operating loss for the three months ended September 30, 2024, was (43,553),comparedto(43,553), compared to (40,930) for the same period in 2023, reflecting a 6.5% increase in losses[14]. - Net loss for the nine months ended September 30, 2024, was (177,536),comparedto(177,536), compared to (146,849) in the same period of 2023, indicating a 20.9% increase in losses[14]. - For the three months ended September 30, 2024, the net loss was 61,030thousand,comparedtoanetlossof61,030 thousand, compared to a net loss of 63,049 thousand for the same period in 2023, representing a decrease of 3.2%[19]. - The company’s accumulated deficit increased to (659,207)thousandattheendoftheperiodfrom(659,207) thousand at the end of the period from (320,678) thousand at the end of September 30, 2023[19]. Assets and Liabilities - Total current assets decreased to 183,082asofSeptember30,2024,from183,082 as of September 30, 2024, from 350,073 as of December 31, 2023, representing a decline of 47.5%[10]. - Total liabilities decreased to 232,145asofSeptember30,2024,from232,145 as of September 30, 2024, from 276,686 as of December 31, 2023, a reduction of 16.1%[10]. - Cash and cash equivalents decreased to 140,371asofSeptember30,2024,from140,371 as of September 30, 2024, from 302,605 as of December 31, 2023, a decline of 53.7%[10]. - Total stockholders' equity decreased to 196,193asofSeptember30,2024,from196,193 as of September 30, 2024, from 359,132 as of December 31, 2023, a decrease of 45.4%[12]. - Total assets as of December 31, 2023, amounted to 298,451thousand,withcashequivalentsat298,451 thousand, with cash equivalents at 246,425 thousand and equity securities at fair value of 41,046thousand[31].CashFlowandInvestmentsNetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was41,046 thousand[31]. Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2024, was (152,625) thousand, compared to 9,131thousandforthesameperiodin2023[21].Thecompanyreporteda9,131 thousand for the same period in 2023[21]. - The company reported a 19.9 million decrease in other expense, net for the three months ended September 30, 2024, primarily due to a decrease in loss recognized from equity method securities[116]. - Investing activities resulted in a net cash outflow of 6.5millionfortheninemonthsendedSeptember30,2024,primarilydueto6.5 million for the nine months ended September 30, 2024, primarily due to 11.3 million in expenditures for property and equipment[129]. - Financing activities led to a net cash outflow of 2.1millionfortheninemonthsendedSeptember30,2024,mainlydueto2.1 million for the nine months ended September 30, 2024, mainly due to 3.3 million for payment of taxes withheld upon vesting of employee stock awards[130]. Stock and Compensation - Weighted average shares of common stock outstanding for the three months ended September 30, 2024, were 45,771, compared to 45,225 for the same period in 2023[14]. - The company granted 200,150 restricted stock awards with a cumulative grant date fair value of 6.8millionfortheninemonthsendedSeptember30,2024[62].TotalstockbasedcompensationforthethreemonthsendedSeptember30,2024,was6.8 million for the nine months ended September 30, 2024[62]. - Total stock-based compensation for the three months ended September 30, 2024, was 6,349,000, an increase from 5,798,000inthesameperiodin2023[61].StockbasedcompensationrelatedtoPSUswas5,798,000 in the same period in 2023[61]. - Stock-based compensation related to PSUs was 2.4 million and 5.7 million for the three and nine months ended September 30, 2024, respectively[66]. Strategic Initiatives - The company aims to expand its market presence through its various retail brands, including Overstock and Bed Bath & Beyond, leveraging its data cooperative model[23]. - The company plans to expand its global loyalty program, Beyond +, to enhance customer retention[83]. - A reduction-in-force affecting approximately 20% of the workforce was announced to streamline operations and reduce costs[80]. - The company entered into a collaboration agreement and a 40 million investment into The Container Store Group, Inc., involving the purchase of 40,000 shares of Series B Convertible Preferred Stock[76]. Legal and Regulatory Matters - Company involved in litigation concerning consumer protection, employment, privacy, and intellectual property, which could materially affect business operations and financial position[144]. - Potential significant damages and costs associated with ongoing legal proceedings could divert management's focus from business operations[144]. Market Conditions and Risks - The company continues to monitor inflationary pressures affecting commodity and shipping prices, energy, and labor costs, which could impact future operations[138]. - Most of the company's sales and operating expenses are denominated in U.S. dollars, minimizing current exposure to foreign currency risk[137]. - The company's Senior Note carries a fixed annual interest rate of 4.242%, indicating no material direct financial statement risk associated with changes in interest rates[136].