Liquidity Services Inc (LQDT) 2024 Q3 法說會逐字稿

Welcome to the Liquidity Services Inc. third quarter of fiscal year 2024 financial results conference call. My name is Lauren Cannon, and I will be your operator for today's call. Please note that this conference call is being recorded. (Operator Instructions) I will now turn the call over to Michael Patrick, Liquidity Services Vice President, and Controller.

歡迎參加 Liquidity Services Inc. 2024 財年第三季財務業績電話會議。我叫勞倫‧坎農 (Lauren Cannon)，我是今天電話的接線生。請注意，本次電話會議正在錄音。（操作員指示）我現在將把電話轉給流動性服務副總裁兼財務總監 Michael Patrick。

Good morning. On the call today are Bill Angrick, our Chairman and Chief Executive Officer; and Jorge Celaya, our Executive Vice President and Chief Financial Officer. They will be available for questions after their prepared remarks. The following discussion and responses to your questions reflect management's views as of today, August 8, 2024, and will include forward-looking statements. Actual results may differ materially.

早安.今天參加電話會議的是我們的董事長兼執行長 Bill Angrick；以及我們的執行副總裁兼財務長 Jorge Celaya。他們在準備好發言後將可以回答問題。以下討論和對您問題的答覆反映了截至今天（2024 年 8 月 8 日）管理層的觀點，並將包含前瞻性陳述。實際結果可能存在重大差異。

Additional information about factors that could potentially impact our financial results is included in today's press release and in filings with the SEC, including our most recent annual report on Form 10-K. As you listen to today's call, please have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter.

有關可能影響我們財務表現的因素的更多資​​訊包含在今天的新聞稿和向 SEC 提交的文件中，包括我們最新的 10-K 表格年度報告。當您收聽今天的電話會議時，請閱讀我們的新聞稿，其中包括我們的財務業績以及本季度的指標和評論。

During this call, management will discuss certain non-GAAP financial measures. In our press release and filings with the SEC each of which is posted on our website, you will find additional disclosures regarding these non-GAAP measures, including the reconciliations of these measures with their most comparable GAAP measures as available.

在這次電話會議中，管理階層將討論某些非公認會計準則財務指標。在我們網站上發布的新聞稿和向 SEC 提交的文件中，您將找到有關這些非 GAAP 衡量標準的其他披露信息，包括這些衡量標準與現有的最具可比性 GAAP 衡量標準的調節表。

Management also uses certain supplemental operating data as a measure of certain components of operating performance, which we also believe is useful for management and investors. 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 will turn the presentation over to our Chairman and CEO, Bill Angrick.

管理階層也會使用某些補充營運數據來衡量營運績效的某些組成部分，我們也認為這對管理階層和投資者有用。此補充營運數據包括商品總量，不應被視為替代或優於 GAAP 結果。這次，我將把演講交給我們的董事長兼執行長比爾·安格里克 (Bill Angrick)。

Good morning, and welcome to our Q3 earnings call. I'll review our Q3 performance and the progress of our business segments and next, Jorge Celaya will provide more details on the quarter. We're proud to report record GMV this quarter of $380 million driven by market share gains, expanded services, and outstanding buyer participation. These results provide a strong proof point that we are on track to achieve our near-term goal of $1.5 billion in annual GMV.

早上好，歡迎參加我們的第三季財報電話會議。我將回顧我們第三季的業績和業務部門的進展，接下來，豪爾赫塞拉亞將提供有關本季的更多詳細資訊。我們很自豪地報告本季的 GMV 達到創紀錄的 3.8 億美元，這得益於市場份額的成長、服務的擴展和出色的買家參與。這些結果有力地證明我們正在實現 15 億美元年度 GMV 的近期目標。

Additionally, our scalable platform continues to drive profitable growth. And in Q3, we delivered our highest quarterly GAAP net income in fiscal year 2024 and strongest non-GAAP adjusted EBITDA performance in a decade. Our flexible services ranging from self-directed to fully managed offerings and efforts to harness the benefits of AI technologies are continuing to attract more sellers and buyers, enhancing the size and scale of our marketplace and fueling our growth.

此外，我們的可擴展平台持續推動獲利成長。在第三季度，我們實現了 2024 財年最高的季度 GAAP 淨利潤以及十年來最強勁的非 GAAP 調整後 EBITDA 表現。我們靈活的服務範圍從自主到完全管理的產品以及利用人工智慧技術優勢的努力正在繼續吸引更多的賣家和買家，擴大我們市場的規模和規模並推動我們的成長。

Our GovDeals segment set a quarterly GMV record of $250 million, driven by continued seller acquisition and service expansion. While we have seen evidence of softening prices, GovDeals recorded strong year-over-year growth in vehicle sales and set numerous records, including the number of sellers, number of asset listings, and number of vehicle listings during Q3.

在持續的賣家收購和服務擴張的推動下，我們的 GovDeals 部門創下了 2.5 億美元的季度 GMV 記錄。儘管我們看到價格疲軟的證據，但 GovDeals 的汽車銷量比去年同期強勁增長，並創下了多項記錄，包括第三季度的賣家數量、掛牌資產數量和掛牌車輛數量。

We continue to expand our market share together with the recently acquired Sierra Auction business and signed notable new clients during Q3, including the state of New York, Spokane County, Washington; Norman, Oklahoma; and Mesa, Arizona.

我們與最近收購的 Sierra Auction 業務一起繼續擴大市場份額，並在第三季簽署了重要的新客戶，包括紐約州、斯波坎縣、華盛頓州；俄克拉荷馬州諾曼；和亞利桑那州梅薩。

Additionally, in our bid for assets marketplace, which is included in our GovDeals segment results, we are now ramping our Philadelphia contract and have signed several new shares of contracts in the states of Pennsylvania and Louisiana. Our retail supply chain group segment focus on exceptional service delivery to its seller clients has been rewarded with increased volumes, which are poised to accelerate further in the fourth quarter. We launched the first phase of our single item receiving tool, which will enhance operational efficiencies for both our B2B and B2C channels.

此外，在我們對資產市場的競購中（包含在我們的 GovDeals 部門業績中），我們現在正在擴大我們的費城合同，並在賓夕法尼亞州和路易斯安那州簽署了幾份新的合同份額。我們的零售供應鏈集團部門專注於向賣家客戶提供卓越的服務，因此銷售量增加，預計第四季將進一步加速。我們推出了單品接收工具的第一階段，這將提高我們的 B2B 和 B2C 通路的營運效率。

During Q3, we onboarded several new clients for utilizing our all surplus deals B2C channel, and we expanded our relationship with several long-standing clients. Together, these efforts will result in continued growth in Q4 and beyond in our RSCG segment.

在第三季度，我們利用我們所有剩餘交易 B2C 管道吸引了幾位新客戶，並擴大了與幾位長期客戶的關係。這些努力將共同推動我們的 RSCG 業務在第四季度及以後實現持續成長。

Our Machinio segment set another revenue record as it continues to be a leader in matching buyers and sellers of used equipment around the globe. Our market research reveals that customers receive superior value through our Machinio advertising and storefront products versus the competition. We expect to sustain mid-teens or better organic revenue growth going forward as Machinio expands its market share in all geographies in Q4.

我們的 Machinio 部門創下了另一項收入記錄，因為它仍然是全球二手設備買家和賣家匹配的領導者。我們的市場研究表明，與競爭對手相比，客戶透過我們的 Machinio 廣告和店面產品獲得了卓越的價值。隨著 Machinio 在第四季度擴大其在所有地區的市場份額，我們預計未來將維持十幾歲左右或更好的有機收入成長。

Our capital assets group segment grew GMV 7% year-over-year during Q3, but results were lower than expectation due to several delayed or canceled sales outside of our control in the US and Asia regions. However, we continue to have good success in signing new clients, adding over 33 new mandates to our industrial CAG pipeline during Q3. We also set a new record for unique sellers in our CAG heavy equipment fleet vertical during the quarter, which bodes well for continued growth of more predictable recurring revenue in our CAG segment.

第三季度，我們的資本資產集團部門的 GMV 年增 7%，但由於美國和亞洲地區的幾項超出我們控制範圍的銷售延遲或取消，結果低於預期。然而，我們在簽約新客戶方面繼續取得巨大成功，在第三季度為我們的工業 CAG 管道增加了超過 33 個新訂單。本季度，我們也為 CAG 重型設備垂直市場的獨特賣家創造了新紀錄，這預示著我們的 CAG 領域中更可預測的經常性收入的持續增長。

Finally, we continue to invest in platform improvements, including seller listing tools, and asset templates to drive efficiency and convenience for our sellers. We continue to harness the potential of AI applications to improve the quality of asset listings, enrich data useful for customers, and enhance marketplace search functionality to optimally match available assets with our buyers' purchasing criteria. Together, these enhancements will continue to improve our seller and buyer experience.

最後，我們繼續投資於平台改進，包括賣家清單工具和資產模板，以提高賣家的效率和便利性。我們繼續利用人工智慧應用程式的潛力來提高資產清單的質量，豐富對客戶有用的數據，並增強市場搜尋功能，以將可用資產與買家的購買標準進行最佳匹配。總而言之，這些增強功能將持續改善我們的賣家和買家體驗。

In summary, we're well positioned strategically and financially in the current environment, our solutions assist clients to weather the cyclicality of an uncertain macro environment. We have a robust business development pipeline and continue to pursue strategic opportunities in each segment of the circular economy to drive customer and shareholder value. I'll now turn it over to Jorge for more details on the quarter.

總而言之，在當前環境下，我們在策略和財務上處於有利地位，我們的解決方案可幫助客戶應對不確定的宏觀環境的周期性。我們擁有強大的業務發展管道，並繼續在循環經濟的各個領域尋求策略機遇，以推動客戶和股東價值。我現在將其轉交給豪爾赫，以了解有關本季度的更多詳細資訊。

Good morning. Our $380 million in GMV for this fiscal third quarter is a new record and a 14% increase over our previous record of $334 million set in the same quarter last year. GovDeals continues to set records, including for quarterly GMV at $250 million, expanding market share and new services. Our retail segment remains a trusted long-term business partner with the scale, flexibility, innovation and reliability, and with broad multi-channel solutions to consistently address the needs of our seller clients.

早安.我們第三財季的 GMV 達到了 3.8 億美元，創下了新紀錄，比去年同期創下的 3.34 億美元的紀錄增長了 14%。GovDeals 繼續創下紀錄，包括季度 GMV 達 2.5 億美元、不斷擴大的市場份額和新服務。我們的零售部門憑藉其規模、靈活性、創新性和可靠性，始終是值得信賴的長期業務合作夥伴，並擁有廣泛的多通路解決方案，始終如一地滿足賣家客戶的需求。

The capital assets segment remains a global presence for corporate clients to monetize their fixed assets across economic and business cycles, while providing buyers opportunities to redeploy assets to grow with a competitive advantage.

資本資產領域仍然是企業客戶在全球範圍內的業務，可以在整個經濟和商業週期中將其固定資產貨幣化，同時為買家提供重新部署資產的機會，以實現競爭優勢的成長。

Our Machinio segment continues on its record pace, growing its established client base, while expanding its services and its global markets. Specifically, our consolidated third quarter of fiscal year 2024 financial results included the GMV of $380.4 million, up 14% from $334 million in the same quarter last year, revenue of $93.6 million, up 16% from $80.8 million in the same quarter last year, while GAAP earnings per share of $0.19 included some acquisition-related expenses and recording of a legal settlement resulting in the lower earnings per share compared to the same quarter last year.

我們的 Machinio 部門繼續以創紀錄的速度發展，擴大其現有的客戶群，同時擴大其服務和全球市場。具體來說，我們的 2024 財年第三季綜合財務表現包括 GMV 為 3.804 億美元，比去年同期的 3.34 億美元成長 14%，營收為 9,360 萬美元，比去年同期的 8,080 萬美元成長 16%， GAAP 每股收益為0.19 美元，其中包括一些收購相關費用以及法律和解記錄，導致每股收益低於去年同期。

Non-GAAP adjusted earnings per share of $0.30, up $0.02 or 7% from the same quarter last year and non-GAAP adjusted EBITDA of $14.7 million, up $1.4 million or 10% from the same quarter last year. Our adjusted EBITDA for this fiscal third quarter was at 30% of the total of our segment's direct profits.

非 GAAP 調整後每股收益為 0.30 美元，比去年同期增長 0.02 美元，即 7%；非 GAAP 調整後 EBITDA 為 1,470 萬美元，比去年同期增長 140 萬美元，即 10%。本財年第三季調整後的 EBITDA 占我們部門直接利潤總額的 30%。

We ended the fiscal third quarter with $136.8 million in cash, cash equivalents, and short-term investments. We generated $22.2 million of cash from operations during the fiscal third quarter. We continue to have zero debt and $25 million of available borrowing capacity under our credit facility.

截至第三財季末，我們擁有 1.368 億美元的現金、現金等價物和短期投資。我們在第三財季的營運中產生了 2,220 萬美元的現金。我們的信貸安排下繼續保持零債務和 2500 萬美元的可用借款能力。

Specifically comparing segment results from this fiscal third quarter to the same quarter last year, the GovDeals segment GMV was up 17%, revenue up 28%, and direct profit up 26%, each a new quarterly record as traditional product categories paired with a higher blended revenue take rate from expanded service offerings.

特別將本財年第三季的部門業績與去年同期相比，GovDeals 部門的GMV 成長了17%，營收成長了28%，直接利潤成長了26%，每季都創下了新的記錄，因為傳統產品類別與較高的產品類別結合。

Our retail segment was up 9% on GMV and up 15% on revenue that set a new segment record, while down 3% on segment direct profit reflecting the higher proportion of purchase revenue in retail and the lower value product flows compared to last year.

我們的零售部門的GMV 成長了9%，營收成長了15%，創下了新的部門記錄，而部門直接利潤下降了3%，反映出與去年相比，零售中的購買收入比例較高，而價值產品流量較低。

Revenue grew faster than GMV due to the higher purchase flows. Our CAG segment was up 7% on GMV, down 4% on revenue, and down 6% on segment direct profit as consignment sales with partners in our industrial vertical grew as did the heavy equipment category, yet were partly offset by project delays in our energy vertical.

由於購買流量增加，營收成長快於 GMV。我們的CAG 部門的GMV 成長了7%，收入下降了4%，部門直接利潤下降了6%，這是因為與工業垂直領域合作夥伴的寄售銷售和重型設備類別一樣增長，但部分被我們的項目延遲所抵消。

Machinio revenue was up 15%, and its segment direct profit was up 16% as we continue to increase recurring subscriptions and pricing for both equipment, advertising listings, and turnkey solutions for dealer management systems.

隨著我們繼續增加設備、廣告清單和經銷商管理系統交鑰匙解決方案的經常性訂閱和定價，Machinio 收入增長了 15%，其部門直接利潤增長了 16%。

Moving to our fiscal fourth-quarter business outlook. We expect to continue double-digit consolidated GMV growth at the midpoint of our guidance range and solid overall results. As a reminder, as GovDeals has come off its seasonally high fiscal third quarter, revenue during this next fiscal fourth quarter is still expected to grow at slightly faster year-over-year rate than GMV due to broader consignment service offerings.

轉向我們第四財季的業務展望。我們預計合併 GMV 將繼續在我們指導範圍的中點實現兩位數的成長，並實現穩健的整體業績。提醒一下，由於 GovDeals 已經擺脫了第三財季的季節性高點，由於寄售服務範圍更廣，預計下一個財年第四季的營收年增速仍將略快於 GMV。

We anticipate growth in our retail segment to be led predominantly by an expansion in purchase volumes, resulting in overall retail revenue, also growing faster than GMV and improved bottom line results for the segment. These volumes are mostly comprised of a mix of lower touch product volume -- product flows and are expected to result in a lower retail segment direct profit as a percent of revenue.

我們預計零售業務的成長將主要由購買量的擴大帶動，導致整體零售收入的成長速度也快於 GMV 的成長，並改善該業務的利潤。這些銷售主要由低接觸產品量（產品流）組成，預計將導致零售部門直接利潤佔收入的百分比下降。

Our capital assets segment's outlook for this fiscal fourth quarter is for steady year-over-year performance yet sequential growth. Our Machinio subscription-based business is anticipated to continue to grow revenue by double digits year over year.

我們的資本資產部門對本財年第四季的展望是年比業績穩定但環比成長。我們的 Machinio 基於訂閱的業務預計將繼續以兩位數的速度同比增長。

Given the expected mix of segment volumes, which includes GovDeals coming off its seasonally high quarter and a mix shift from the new retail programs, we are anticipating our consolidated revenue as a percent of GMV to be higher in the high 20 percentage range for this coming fiscal fourth quarter, and our segment's direct profit as a percent of total revenue to be lower in the high 40 percentage range.

考慮到細分市場銷售的預期組合，其中包括 GovDeals 擺脫了季節性高季度以及新零售計劃的組合轉變，我們預計我們的綜合收入佔 GMV 的百分比將在未來 20 個百分點的範圍內更高第四財季，我們部門的直接利潤佔總收入的百分比將低於40% 以上的範圍。

Management's guidance for the fourth quarter of fiscal year 2024 is as follows: we expect GMV to range from $330 million to $365 million. GAAP net income is expected in the range of $5 million to $7 million with a corresponding GAAP diluted earnings per share ranging from $0.16 to $0.22 per share.

管理階層對2024財年第四季的指導如下：我們預期GMV在3.3億美元至3.65億美元之間。GAAP 淨利潤預計為 500 萬美元至 700 萬美元，相應的 GAAP 攤薄每股收益為 0.16 美元至 0.22 美元。

Non-GAAP adjusted diluted earnings per share is estimated in the range of $0.25 to $0.32 per share. We estimate non-GAAP adjusted EBITDA to range from $12 million to $15 million. The GAAP and non-GAAP EPS guidance assumes that we have approximately 31.5 million to 32 million fully diluted weighted average shares outstanding for the fourth quarter of fiscal year 2024. Thank you and we will now take your questions.

非 GAAP 調整後稀釋每股盈餘預計為每股 0.25 美元至 0.32 美元。我們估計非 GAAP 調整後 EBITDA 範圍為 1200 萬美元至 1500 萬美元。GAAP 與非 GAAP 每股盈餘指引假設我們在 2024 財年第四季擁有約 3,150 萬至 3,200 萬股完全稀釋加權平均已發行股票。謝謝您，我們現在將回答您的問題。

(Operator Instructions) Gary Prestopino, Barrington Research.

（操作員說明）Gary Prestopino，Barrington Research。

Bill, you were talking about seeing some evidence of softening prices in GovDeals. Is that just really a direct reflection of what's going on in the vehicle -- used vehicle market?

比爾，您談到在 GovDeals 中看到一些價格疲軟的證據。這真的直接反映了車輛——二手車市場正在發生的事情嗎？

Correct. We've seen some softening with fleet assets, both vehicle and construction equipment.

正確的。我們看到車隊資產（包括車輛和建築設備）出現了一些疲軟。

Okay. But at the same time, from what I'm hearing about the industry, the supply is starting to kick up at a fairly steady pace. Are you seeing that as well in your markets realizing you don't really can generally follow the wholesale auction market for vehicles that are used by consumers? But what can you say about some of the supply issues, the constraints you are feeling?

好的。但同時，根據我對這個行業的了解，供應量開始以相當穩定的速度增加。您是否在您的市場中也看到了這一點，意識到您實際上不能真正追蹤消費者使用的車輛的批發拍賣市場？但對於一些供應問題以及您感受到的限制您有何看法？

We have no headwinds related to supply. The government market has intent to buy, the budget to buy. and continues its replenishment cycle. So that has been very steady for us.

我們沒有與供應相關的阻力。政府市場有購買意向，有預算購買。並繼續其補充週期。所以這對我們來說非常穩定。

Okay. And then second question is, you talked about the RSCG segment. You launched a single item recovery tool. Could you maybe discuss that what that tool is?

好的。第二個問題是，您談到了 RSCG 部分。您啟動了單一項目恢復工具。您能否討論一下該工具是什麼？

Sure. The term I used was single item receiving tool and what that allows. And essentially, it's harnessing standardized available data into a receiving tool that allows us to quickly identify the right channel for each item received from the flow of return goods. And the use of that tool does a couple of things.

當然。我使用的術語是單件接收工具及其允許的功能。從本質上講，它將標準化的可用資料利用到接收工具中，使我們能夠快速識別從退貨流中接收的每件物品的正確管道。使用該工具可以做幾件事。

One, it helps us optimize the operational process that would automate something that has historically been more manual. So it's driving efficiencies; two, it's accelerating the listing of the items so faster time to cash; and three, giving us attributes that allows us to determine should the item go in a B2B channel versus a direct-to-consumer channel, which ultimately drives higher recovery. So we're pleased with that enhancement.

第一，它幫助我們優化操作流程，使以前更多手動操作的工作自動化。所以它可以提高效率；二是加快商品上市速度，加快兌現速度；第三，為我們提供屬性，讓我們能夠確定該商品應該進入 B2B 通路還是直接面向消費者的管道，最終將推動更高的回收率。所以我們對這增強感到滿意。

Okay. And then just lastly, in the CAG segment, do you feel that some of these delayed asset sales that you cited in your commentary, will they be completed or done in Q4? And as well as with the 33 new mandates that you got in Q3, when does that start flowing into the GMV mix?

好的。最後，在 CAG 領域，您是否認為您在評論中提到的一些延遲的資產出售會在第四季度完成或完成？除了第三季獲得的 33 項新指令外，這些指令何時開始流入 GMV 組合？

Yeah, mandates will ripen over the next few quarters. I think some of these delays reflect the macro volatility we have where corporate America can sometimes stop and start different initiatives, depending upon their internal forecast for demand or what they want to do with mergers, consolidations, cost-cutting exercises.

是的，任務將在接下來的幾季成熟。我認為其中一些延遲反映了我們所面臨的宏觀波動，美國企業有時可以停止並啟動不同的舉措，這取決於他們對需求的內部預測或他們想要透過合併、整合、削減成本來做什麼。

So importantly, it has nothing to do with us. It really has to do with -- these are downstream or call it, upstream decisions that affect the disposition of assets. What we like is the fact that we're winning a very high percentage of anything that we're pitching. And we're getting recurring flow business -- what we call corporate forward flow, recurring flow business from brand name Fortune 500, Fortune 1000 companies.

最重要的是，這與我們無關。它確實與影響資產處置的下游或稱之為上游決策有關。我們喜歡的事實是，我們在所投的任何項目中獲勝的比例都非常高。我們正在獲得經常性流量業務——我們稱之為企業前向流量，來自財富 500 強、財富 1000 強公司的經常性流量業務。

So whenever the assets do go to market, we'll be the marketplace that handles those transactions. So some percentage of them will fall into Q4, some Q1 or Q2 of fiscal '25.

因此，每當資產進入市場時，我們都會成為處理這些交易的市場。因此，其中一部分將落入 25 財年的第四季度，部分第一季或第二季。

Okay. Thank you very much.

好的。非常感謝。

George Sutton, Craig-Hallum.

喬治·薩頓，克雷格·哈勒姆。

Bill, nice results. And you characterized the current environment is challenged. And I wanted to think through how you're thinking about the concept of you just being a growth cyclical, meaning your business that grows, but you do have cyclical components.

比爾，結果不錯。您形容當前的環境受到挑戰。我想思考你如何看待你只是一個成長週期的概念，這意味著你的業務正在成長，但你確實有週期成分。

And I'm trying to understand the positives and the negatives relative to the cyclicality. In other words, you referred to pricing, in some cases a challenge. And we obviously had some deals pushed. Those may be macro-related.

我試圖理解相對於週期性的正面和負面因素。換句話說，您提到定價，在某些情況下是一個挑戰。顯然我們已經推動了一些交易。這些可能與宏觀有關。

But on the alternative side, you would seem to be a wonderful place to be if we sit here today concerned about the future of the economy given the two-sided marketplace. Can you just discuss that in your thoughts?

但另一方面，如果我們今天坐在這裡關心雙邊市場的經濟未來，那麼您似乎是一個很棒的地方。可以談談你的想法嗎？

Sure. Well, we're a huge engine for monetizing assets. So whether Fortune 100 company or government agency, wants to manage its balance sheet more sharply. We're a natural place to look to help them husband resources during a slow growth environment.

當然。嗯，我們是資產貨幣化的巨大引擎。因此，無論是財富 100 強公司或政府機構，都希望更敏銳地管理其資產負債表。在緩慢成長的環境中，我們是幫助他們節省資源的天然場所。

So we see some tailwinds from slowing growth because if that asset can't be used productively and generate some sort of a return for the owner, it's going to be sold. And we're the natural place to take it to market. So that's been a positive.

因此，我們看到成長放緩帶來了一些順風車，因為如果該資產無法有效利用並為所有者產生某種回報，那麼它將被出售。我們自然是將其推向市場的地方。所以這是積極的。

And I think when you look at the total GMV of the company, CAG, which is probably the lumpiest, it only represents about 20% of the pie. So there's muted cyclicality relative to these large industrial assets that may move around from one quarter to the other.

我認為，當你看看該公司的總 GMV 時，CAG 可能是最笨重的，它只佔整個市場的 20% 左右。因此，相對於這些可能從一個季度轉移到另一個季度的大型工業資產而言，週期性較弱。

What we've seen is strong tailwinds as both government clients are trying to be, one, more efficient, using digital solutions, faster -- sales cycle, faster time to cash, less work, freeing up physical space to sell these assets quickly.

我們看到的是強大的推動力，因為兩個政府客戶都在努力提高效率，使用數位解決方案，更快的銷售週期，更快的兌現時間，更少的工作，釋放實體空間來快速出售這些資產。

I think, two, the buyer side of our marketplace is frugal. They're looking to save money. And we're a natural marketplace to go to buy something at less than even wholesale costs and save money and help build their business or use an asset in their operations. So that's been great.

我認為，第二，我們市場的買方是節儉的。他們想省錢。我們是一個天然的市場，您可以以低於批發成本的價格購買商品，從而節省資金並幫助他們建立業務或在營運中使用資產。所以這很棒。

And then on the retail side, we are the trusted provider. We're where the market has migrated to get good execution around tracking, managing, and monetizing return goods. This is a market that continues to grow. It's growing through any sort of recessionary trend. It's just a fact of this mix shift from in person to online shopping.

然後在零售方面，我們是值得信賴的提供者。我們正處於市場遷移的階段，以便在追蹤、管理和貨幣化退貨方面獲得良好的執行力。這是一個持續成長的市場。它在任何形式的衰退趨勢中都在增長。這只是從親自購物到網上購物的混合轉變的事實。

And so we expanded our capabilities. There was a press release out on our Brownsburg, Indiana facility. It's a larger facility. It's responding to marketplace needs for B2B and direct-to-consumer flows. So we have a resilient scalable model for the retail supply chain to continue to be more efficient around managing and selling of returned merchandise. And we think that's a constant cyclical. Honestly, it's a -- a markets that continues to grow.

因此我們擴大了我們的能力。我們在印第安納州布朗斯堡工廠發布了一份新聞稿。這是一個更大的設施。它正在回應 B2B 和直接面向消費者流程的市場需求。因此，我們為零售供應鏈提供了一個彈性可擴展的模型，以繼續提高退貨商品管理和銷售的效率。我們認為這是一個持續的周期性。老實說，這是一個持續成長的市場。

Right. And then just one other question in pointing to the strong results for the quarter. You specifically referred to service expansion. I just want to make sure I knew what you were referring to there?

正確的。然後還有一個問題指出了本季的強勁業績。您特別提到了服務擴展。我只是想確定我知道你指的是什麼？

Sure. We've given clients different tools to opt into what is most relevant for them. And I mentioned both, self-directed solutions where clients can use our solutions to identify and upload assets directly. They pay a lower commission for that and many clients opt to do that.

當然。我們為客戶提供了不同的工具來選擇與他們最相關的內容。我提到了兩種自主解決方案，客戶可以使用我們的解決方案直接識別和上傳資產。他們為此支付較低的佣金，許多客戶選擇這樣做。

We also provide fully managed offerings, and that's reflective of some of our facility expansions where clients have directed consumers who have the returns -- to return those to our facilities. So it removes a leg of transportation back to a retailer's return center.

我們還提供完全託管的產品，這反映了我們的一些設施擴建，客戶指示獲得退貨的消費者將其退回我們的設施。因此，它省去了返回零售商退貨中心的一段運輸路程。

So we've created tools and services and the space to take items back directly from consumers. We also have services in the government and fleet business where if a client is shorthanded, we can dispatch an individual to help them catalog assets.

因此，我們創造了工具和服務以及直接從消費者手中取回物品的空間。我們也在政府和車隊業務中提供服務，如果客戶人手不足，我們可以派遣人員幫助他們對資產進行編目。

And the Sierra Auction business we acquired had a history of doing that. And that's allowed us to provide semi-assisted services to access more fleet business. So those are the things that we've been talking about when we refer to services.

我們收購的 Sierra 拍賣公司就有這樣做的歷史。這使我們能夠提供半輔助服務來獲得更多車隊業務。這些就是我們在提到服務時一直在談論的事情。

Very good. Thank you very much.

非常好。非常感謝。

We have no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

目前我們沒有進一步的問題。感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。