Liquidity Services Inc (LQDT) 2024 Q4 法說會逐字稿

Welcome to Liquidity Services Inc., fourth-quarter of fiscal year 2024 financial results conference call. My name is Lisa, and I will be your operator for today's call. Please note that this conference is being recorded. (Operator Instructions)

歡迎參加 Liquidity Services Inc. 2024 財年第四季財務業績電話會議。我叫麗莎，我將擔任您今天通話的接線生。請注意，本次會議正在錄製中。（操作員說明）

I will now turn the call over to Michael Patrick, Liquidity Services Vice President and Controller. Please go ahead.

我現在將把電話轉給流動性服務副總裁兼財務總監 Michael Patrick。請繼續。

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, December 12, 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 12 月 12 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. (technical difficulty) 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。 （技術難度）在今天的電話會議上，請將我們的新聞稿放在您面前，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. 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.

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，您會發現有關這些非 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。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。

At this time, I will turn the presentation over to our Chairman and CEO, Bill Angrick.

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 Q4 earnings call. I'll review our Q4 performance and the progress of our business segments and next, Jorge Celaya will provide for details on the quarter.

早上好，歡迎參加我們的第四季財報電話會議。我將回顧我們第四季度的業績和業務部門的進展，接下來，豪爾赫塞拉亞將提供本季的詳細資訊。

Our healthy fourth quarter results capped a successful year of market share expansion and consistent growth in fiscal year 2024 backed by our investments in innovation, service and strong operational execution for our customers. We achieved double-digit consolidated GMV growth in each quarter throughout the year, and each of our segments achieved double-digit annual GMV growth culminating in record annual GMV of $1.4 billion.

在我們對創新、服務和為客戶提供強大營運執行力的投資的支持下，我們第四季度的健康業績為 2024 財年市場份額的成功擴張和持續增長畫上了圓滿的句號。我們全年每季的綜合 GMV 均實現了兩位數的綜合 GMV 成長，每個細分市場的年度 GMV 均實現了兩位數的成長，最終創下了 14 億美元的年度 GMV 紀錄。

Overall, we are seeing enhanced network effects in our two-sided marketplace platform as we grew our auction participants and completed transactions by 22% and 12% year over year, respectively, during the quarter. We converted this growth to over $22 million in operating cash flow in the fourth quarter, highlighting the strength of our asset-light business model.

總體而言，隨著本季拍賣參與者的增加和完成的交易量分別年增 22% 和 12%，我們看到雙邊市場平台的網路效應增強。我們在第四季度將這一成長轉化為超過 2,200 萬美元的營運現金流，凸顯了我們輕資產業務模式的優勢。

In the fourth quarter, our RSCG segment set new quarterly records in GMV, revenue, and segment-directed profit as we drove expanded relationships with our seller clients by leveraging our decades of industry-leading expertise and multichannel buyer liquidity. Our GovDeals segment delivered robust double-digit growth through ongoing seller acquisition and service expansion. Additionally, our Machinio segment achieved another quarterly revenue record, further solidifying its position as a leading platform for connecting buyers and sellers of used equipment worldwide.

第四季度，我們的RSCG 部門在GMV、收入和部門導向利潤方面創下了新的季度記錄，因為我們利用數十年行業領先的專業知識和多渠道買家流動性，擴大了與賣家客戶的關係。我們的 GovDeals 部門透過持續的賣家收購和服務擴展實現了強勁的兩位數成長。此外，我們的 Machinio 部門再創季度收入記錄，進一步鞏固了其作為連接全球二手設備買家和賣家的領先平台的地位。

We're also thrilled to celebrate a significant milestone, our 25th anniversary. Over the past quarter century, Liquidity Services has grown from a scrappy start-up, I was there, into a leading global e-commerce company powering the circular economy and delivering unmatched value worldwide. Our journey has been marked by remarkable growth, innovation, and a steadfast commitment to promoting sustainability. This milestone allows us to reflect on our achievements and express our deepest gratitude to our dedicated team, our loyal clients, and supportive stakeholders who have been instrumental in our success.

我們也很高興慶祝一個重要的里程碑，即我們的 25 週年紀念日。在過去的四分之一個世紀裡，Liquidity Services 已從一家鬥志旺盛的新創公司（我在那裡）發展成為一家全球領先的電子商務公司，為循環經濟提供動力，並在全球範圍內提供無與倫比的價值。我們的旅程以顯著的成長、創新和對促進永續發展的堅定承諾為標誌。這一里程碑使我們能夠反思我們的成就，並向我們的敬業團隊、忠誠的客戶和支持我們的利害關係人表達最深切的謝意，他們對我們的成功發揮了重要作用。

As we look to the future, we remain committed to driving excellence and innovation in all that we do. Overall, our scalable marketplace technology, broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities will propel us in continuing our track record of growth.

展望未來，我們仍然致力於在我們所做的一切事情中推動卓越和創新。總體而言，我們可擴展的市場技術、廣泛的服務、多元化的客戶群、有機成長計劃和收購機會管道將推動我們繼續保持成長記錄。

Our leadership team has now set its sights on reaching the $2 billion annual GMV milestone, which is a key step combined with service and margin expansion towards attaining the $100 million of annual EBITDA milestone. To achieve these objectives, we will focus on the following areas: one, increasing our market share and the sales volume transacted on our marketplace; two, expanding our buyer base and sales channels to enhance recovery on the assets we sell; three, infusing and modernizing our platform with new technologies, including AI tools to increase our operational efficiencies and improve the customer experience. And finally, four, executing complementary bolt-on acquisitions. We expect to realize these goals in the next few years, which in turn will deliver tremendous value for our customers and our shareholders.

我們的領導團隊現在的目標是達到 20 億美元的年度 GMV 里程碑，這是與服務和利潤擴張相結合，實現 1 億美元的年度 EBITDA 里程碑的關鍵一步。為了實現這些目標，我們將重點放在以下幾個方面：一是提高市場份額和市場交易量；二是擴大買家基礎及銷售管道，提高出售資產的回收率；第三，用新技術（包括人工智慧工具）注入我們的平台並使之現代化，以提高我們的營運效率並改善客戶體驗。最後，第四，執行補充性的補強收購。我們預計在未來幾年內實現這些目標，這反過來將為我們的客戶和股東帶來巨大的價值。

I'll now turn it over to Jorge for more details on the quarter.

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. We completed the 2024 fiscal year with a new annual record for GMV at $1.4 billion, solid profitability and a strong cash position. These achievements coincide with the celebration of our 25th anniversary, a milestone that underscores our commitment to our customers, investors, and continued industry leadership. Fiscal year 2024 saw GMV grow 14% to the $1.4 billion record level with each of our segments delivering double-digit GMV growth year over year. Our revenue grew 16% to $363 million led by our retail and GovDeals segments.

早安.2024 財年，我們的 GMV 創下了 14 億美元的新年度紀錄，獲利能力穩健，現金狀況強勁。這些成就恰逢我們慶祝成立 25 週年，這是一個里程碑，強調了我們對客戶、投資者和持續的行業領導地位的承諾。2024 財年，GMV 成長 14%，達到 14 億美元的創紀錄水平，我們每個細分市場的 GMV 年比均達到兩位數成長。在零售和 GovDeals 部門的帶動下，我們的營收成長了 16%，達到 3.63 億美元。

GAAP net income was $20 million or up 9% on a non-GAAP adjusted basis. And our non-GAAP adjusted EBITDA was $48.5 million for the year, up 6%. For our consolidated fiscal fourth quarter, GMV was $361 million, also up 14% from $316 million in the same quarter last year. Revenue was $106.9 million, up 34% and growing faster than GMV, mainly due to growth in purchase programs in our retail segment, primarily from lower touch flows.

GAAP 淨利為 2,000 萬美元，以非 GAAP 調整後成長 9%。我們的非 GAAP 調整後 EBITDA 全年為 4,850 萬美元，成長 6%。我們第四財季的 GMV 為 3.61 億美元，也比去年同期的 3.16 億美元成長了 14%。營收為 1.069 億美元，成長 34%，成長速度快於 GMV，這主要是由於我們零售部門的購買計劃的成長（主要來自較低的接觸流量）。

Our GAAP earnings per share was $0.20. Our non-GAAP adjusted EPS was $0.32, up 23% and our non-GAAP adjusted EBITDA was $14.5 million, up 13%. We generated $22 million in cash flows from operations during the fourth quarter and ended the fourth quarter with $155.5 million in cash, cash equivalents and short-term investments. We continue to have zero debt with $17.5 million of available borrowing capacity under our credit facility.

我們的 GAAP 每股收益為 0.20 美元。我們的非 GAAP 調整後每股收益為 0.32 美元，成長 23%，非 GAAP 調整後 EBITDA 為 1,450 萬美元，成長 13%。我們第四季的營運現金流為 2,200 萬美元，第四季末現金、現金等價物和短期投資為 1.555 億美元。我們的信貸額度下的可用借款能力為 1,750 萬美元，債務仍然為零。

Specifically, comparing segment results from this fiscal fourth quarter to the same quarter last year, our retail segment was up 28% on GMV, up 49% on revenue, and up 5% on segment-direct profit, driven by the growth in our purchase programs. Our GovDeals segment's GMV was up 14%, revenue up 26% and direct profit up 23%, driven by service expansion from the Sierra Auction acquisition and continued growth with new sellers.

具體來說，將本財年第四季的部門業績與去年同期相比，我們的零售部門在採購成長的推動下，GMV 成長了 28%，營收成長了 49%，部門直接利潤成長了 5%程式.受 Sierra Auction 收購帶來的服務擴展以及新賣家持續成長的推動，我們的 GovDeals 部門的 GMV 成長了 14%，營收成長了 26%，直接利潤成長了 23%。

Our CAG segment was down 2% on GMV, down 17% on revenue and down 12% on segment direct profit, reflecting low purchase transactions during this past fiscal fourth quarter. Machinio's revenue and segment profit were both up 13% as we continue to experience strong client retention and increases in new customers for our subscription services.

我們的 CAG 部門的 GMV 下降 2%，營收下降 17%，部門直接利潤下降 12%，反映出上一財年第四季的採購交易量較低。Machinio 的營收和部門利潤均成長了 13%，因為我們繼續保持強勁的客戶保留率，訂閱服務的新客戶不斷增加。

As we look to our fiscal year 2025, we continue to see opportunities to expand our market share and our services to improve our seller and buyer experiences on our platform and to deliver year-over-year growth across our segments. Our fiscal first quarter 2025 guidance reflects our continued optimism as key metrics showed solid improvement as we closed 2024.

展望 2025 財年，我們持續看到擴大市場份額和服務的機會，以改善平台上的賣家和買家體驗，並實現各細分市場的同比增長。我們的 2025 財年第一季指引反映了我們持續的樂觀態度，因為截至 2024 年末，關鍵指標顯示出堅實的改善。

Much of our focus throughout fiscal year 2024 will drive results expected during 2025. Our retail segment expanded its purchase programs, including additional lower touch flows and its buyer outreach. Machinio continued to expand and have strong retention and demand for its services and our CAG segment pipeline of projects continued solid across several sectors, including heavy equipment, industrial, and energy. These drivers are expected to increase their respective GMV and revenues as we go forward into fiscal year 2025, with revenue growing at a higher rate than GMV. GovDeals also expanded its footprint and provided a strong add-on for continued growth from new services through the acquisition of Sierra Auction.

我們 2024 財年的大部分重點將推動 2025 年的預期表現。我們的零售部門擴大了採購計劃，包括額外的低接觸流量和買家外展。Machinio 繼續擴張，對其服務擁有強勁的保留和需求，我們的 CAG 部門專案管道在多個領域繼續保持穩定，包括重型設備、工業和能源。隨著我們進入 2025 財年，這些驅動因素預計將增加各自的 GMV 和收入，收入成長速度將高於 GMV。GovDeals 也透過收購 Sierra Auction 擴大了業務範圍，並為新服務的持續成長提供了強大的附加功能。

Our fiscal first quarter guidance when compared sequentially against this last fiscal fourth quarter reflects the downward seasonality effects in the fiscal first quarter across various of our segments despite some potentially higher top line results sequentially. Comparing year over year, however, our fiscal first quarter guidance range reflects solid improvement in our results. With the expected GMV mix in our segment volumes, we expect the mix going forward to result in an overall consolidated consignment GMV to be at approximately 80% of total GMV, our consolidated revenue as a percent of GMV to be up in the range of approximately 30%, and the total of our segment direct profit as a percent of total revenue to be down to the low 40 percentage range.

與上個財年第四季相比，我們第一財季的指導反映了我們各部門在第一財季的季節性影響，儘管一些營收可能會連續上升。然而，與去年同期相比，我們第一季的指導範圍反映了我們業績的穩定改善。根據我們細分市場銷售中預期的 GMV 組合，我們預計未來的組合將導致整體綜合寄售 GMV 約為總 GMV 的 80%，我們的綜合收入佔 GMV 的百分比將上升到約30%，我們部門的直接利潤總額佔總收入的百分比將降至40% 左右。

These ratios can vary based on our mix, including pricing models, volumes and asset categories in any given period. This mix shift includes the expansion of lower touch purchase programs in the retail segment. Retail segment direct profit as a percent of revenue is expected to be tempered year over year and sequentially relative to the fourth quarter of fiscal year 2024's direct margin percent. Our profitability is expected to be up year over year this coming fiscal first quarter and consistent with prior year trends. The expected increase in adjusted EBITDA is despite our operating expenses seasonally increasing during the fiscal first quarter with operating leverage typically expected to improve during the stronger second half of our fiscal year.

這些比率可能會根據我們的組合而有所不同，包括任何給定時期的定價模型、數量和資產類別。這種混合轉變包括在零售領域擴大低接觸購買計劃。相對於 2024 財年第四季的直接利潤率，零售部門的直接利潤佔收入的百分比預計將逐年下降。我們的獲利能力預計將在即將到來的第一財季同比增長，並與去年的趨勢保持一致。儘管我們的營運費用在第一財季季節性增加，但營運槓桿通常預計在強勁的下半年會有所改善，但調整後 EBITDA 的預期成長。

Management's guidance for the first quarter of fiscal year 2025 is as follows: we expect GMV to range from $350 million to $385 million. GAAP net income is expected in the range of $2.5 million to $5 million with a corresponding GAAP diluted earnings per share ranging from $0.08 to $0.16 per share. Non-GAAP adjusted diluted earnings per share is estimated in the range of $0.18 to $0.26 per share. We estimate non-GAAP adjusted EBITDA to range from $9.5 million to $12.5 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 first quarter of fiscal year 2025.

管理階層對2025財年第一季的指導如下：我們預期GMV在3.5億美元至3.85億美元之間。GAAP 淨利潤預計為 250 萬美元至 500 萬美元，相應的 GAAP 攤薄每股收益為 0.08 美元至 0.16 美元。非 GAAP 調整後稀釋每股盈餘預計為每股 0.18 美元至 0.26 美元。我們估計非 GAAP 調整後 EBITDA 範圍為 950 萬美元至 1,250 萬美元。GAAP 與非 GAAP 每股盈餘指引假設我們在 2025 財年第一季擁有約 3,150 萬至 3,200 萬股完全稀釋加權平均已發行股票。

Thank you, and we will now take your questions.

謝謝您，我們現在將回答您的問題。

(Operator Instructions) Gary Prestopino, Barrington.

（操作員說明）Gary Prestopino，Barrington。

Good morning, Bill and Jorge, a couple of questions here. The growth from the participants this quarter was pretty strong, and I guess as well as transactions. I want to get an idea of what segments you're seeing the highest growth in participants in or maybe asking it another way, is the Sierra acquisition -- Sierra Auction acquisition really driving some of this growth in the participants? Hello?

早安，比爾和豪爾赫，有幾個問題。本季參與者的成長非常強勁，我想交易也是如此。我想了解哪些細分市場的參與者成長最快，或者換個方式問，Sierra 收購——Sierra Auction 收購真的推動了參與者的成長嗎？你好？

And it's not a catalyst for that. I think we've seen broad-based expansion of our buyer base led by our Retail segment, followed by our GovDeals segment as we've broadened the range of assets that we're selling in both of those areas. And I think just in general, there's been a nice appreciation for the value of our marketplace on behalf of both small business buyers and end consumers. They shop liquidity services marketplaces because they're able to access used and returned goods that have a long useful life, but at prices that are far lower than buying new. So I think those are the drivers.

它不是催化劑。我認為我們已經看到以零售部門為首的買家基礎廣泛擴張，其次是政府交易部門，因為我們擴大了在這兩個領域銷售的資產範圍。我認為總的來說，小企業買家和最終消費者都對我們市場的價值有很好的評價。他們在流動性服務市場上購物，因為他們能夠獲得使用壽命長的二手商品和退貨商品，但價格卻遠低於購買新商品。所以我認為這些都是驅動因素。

Okay. Thank you. And then in terms of continuing investments for growth, at least in the last two years, we had a situation where you've stepped up your investments for growth and it seems like that is not going to really be the case in this quarter for fiscal '25. It seems like given your guidance at least for Q1, that your -- the investments you've made are sufficient here to drive growth at least for this year and maybe going into next year. Can you comment on that?

好的。謝謝。然後，就持續成長投資而言，至少在過去兩年中，我們已經加大了成長投資，但本季的財政情況似乎並非如此。考慮到您至少在第一季的指導，您所做的投資似乎足以推動至少今年甚至明年的成長。你能對此發表評論嗎？

Yes, I would agree that our growth has leveraged investments made in prior years and that going forward, we're making incremental investment in continued modernization in areas that will help expand margins. For example, we have harnessed the value of certain machine-driven and AI-driven functionality to drive better descriptions of our assets, better matching of assets with buyers in a much more automated way, better merchandising of the assets that we sell through the marketplace, a better registration process to onboard buyers and retarget buyers with less effort and less friction and cost. And I think these incremental investments going forward will also continue to improve the mobile experience on our platform, which will ultimately increase -- continue to increase buyer participation and continue to increase recovery, which is a key lever for any marketplace, and one we're very excited about for Liquidity Services.

是的，我同意我們的成長利用了前幾年的投資，展望未來，我們將在有助於擴大利潤的領域進行持續現代化的增量投資。例如，我們利用某些機器驅動和人工智慧驅動功能的價值來更好地描述我們的資產，以更加自動化的方式更好地匹配資產與買家，更好地推銷我們透過市場銷售的資產，一個更好的註冊流程，可以幫助買家更輕鬆地重新定位買家，減少摩擦和成本。我認為未來的這些增量投資也將繼續改善我們平台上的行動體驗，這最終將繼續增加買家參與度並繼續增加復甦，這是任何市場的關鍵槓桿，也是我們對關鍵的槓桿。流動性服務感到非常興奮。

Okay. Thank you. And then just two more. In terms of the numbers you threw out with $2 billion GMV, $100 million of EBITDA, what is the timeframe for that? Is that over -- you have a 5-year target, a 10-year target, can you give us some idea of how -- where you're looking to achieve that?

好的。謝謝。然後還有兩個。就您提出的 20 億美元 GMV、1 億美元 EBITDA 的數字而言，具體時間是多少？一切都結束了嗎？

Yeah. Well, we've got right in front of us, I think the markets and the credibility and the capabilities to arrive at that $2 billion GMV destination certainly inside of five years, and we'd say, the next few years, whether that's two years or four years or somewhere in between, the market will reveal its health. What we have great confidence in is that, our solutions are solutions that our customers need and value that we have a market-leading position to execute on that growth. And just by continuing to view what we're doing, we're on our way to that type of trajectory. And I think first, you have to create the value for the client, and we do that through a self-directed and fully managed solutions. We do that by having the largest buyer base and liquidity, both in the B2B and direct-to-consumer channels for our clients and that we have incredible data to value and provide expertise to our clients on return.

是的。好吧，我們就在眼前，我認為市場、信譽和能力肯定會在五年內達到 20 億美元 GMV 的目標，我們會說，未來幾年，無論是兩年、四年或介於兩者之間的某個時間，市場將顯露出其健康狀況。我們充滿信心的是，我們的解決方案是客戶需要和重視的解決方案，我們擁有市場領先地位來實現這一成長。只要繼續審視我們正在做的事情，我們就會朝著這種軌跡前進。我認為首先，你必須為客戶創造價值，我們透過自我指導和完全管理的解決方案來做到這一點。我們透過在 B2B 和直接面向消費者的管道中為客戶擁有最大的買家基礎和流動性來做到這一點，並且我們擁有令人難以置信的數據來評估並為客戶提供專業知識作為回報。

So if you have that, Gary, you have the opportunity to grow and hitting that $2 billion timeframe -- $2 billion milestone in a shorter timeframe, certainly is our goal, but we're very comfortable with our competitive position and our ability to do that. And I'd say, the margins that you derive from volume are also an exciting part of a marketplace business model. We're growing both our GMV on the platform, but also our non-GMV related services. We talked about the growth of Machinio. We have a lot of software-enabled, self-directed flows on our marketplace.

因此，加里，如果你有這個能力，你就有機會成長並達到20 億美元的時間表——在更短的時間內達到20 億美元的里程碑，這當然是我們的目標，但我們對我們的競爭地位和我們的能力感到非常滿意那。我想說，從銷售中獲得的利潤也是市場商業模式中令人興奮的一部分。我們不僅在平台上提升 GMV，而且也在提升非 GMV 相關服務。我們談論了 Machinio 的成長。我們的市場上有許多由軟體支援的自主流程。

In our bid for assets business, we have fee-for-service to allow government entities, including counties and sheriffs to manage the entire foreclosure process online and some of that activity is not recorded in GMV. So a combination of getting to a $2 billion GMV threshold plus growth of non-GMV value-added services puts us well on our way towards that $100 million annual EBITDA milestone.

在我們的資產業務競標中，我們採用按服務收費的方式，允許包括縣和治安官在內的政府實體在線管理整個止贖流程，其中一些活動不會記錄在 GMV 中。因此，達到 20 億美元的 GMV 門檻加上非 GMV 增值服務的成長，使我們能夠順利實現 1 億美元的年度 EBITDA 里程碑。

It's not directly correlated to the point estimate of $2 billion of GMV, but certainly attainable in the next few years. And also, I'd like to point out that we are really the consolidator of choice in the circular economy. If we see these small niche businesses express a desire to become part of a market-leading platform, we're getting that call and a lot of these are founder-led businesses and so Sierra is one example of that. We think there's a lot of opportunities in that inorganic growth category as we move forward.

它與 20 億美元 GMV 的點估計沒有直接關係，但在未來幾年肯定可以實現。另外，我想指出的是，我們確實是循環經濟領域的首選整合者。如果我們看到這些小型利基企業表達了成為市場領先平台一部分的願望，我們就會接到這樣的電話，其中許多都是創辦人領導的企業，所以 Sierra 就是一個例子。我們認為，隨著我們的前進，無機成長類別中存在著許多機會。

Thank you very much.

非常感謝。

(Operator Instructions) Logan Lillehaug, Craig-Hallum.

（操作員說明）Logan Lillehaug，Craig-Hallum。

Hey, good morning, guys. This is Logan on for George. Congrats on the nice quarter here. I think the big number that stands out is that retail GMV, and Bill, I'm just wondering if you can put a little finer point on that, kind of you guys have outlined the case as to why you're kind of the best player in the market. But I'm just wondering if you can speak a little bit to why now, why you think those retailers are expanding their relationship now? Is that something you guys are doing on your end, operational improvements or just gaining their trust and just kind of what drives that right now?

嘿，早上好，夥計們。這是喬治的洛根。恭喜這裡度過了美好的季度。我認為最引人注目的數字是零售 GMV，比爾，我只是想知道你是否可以對此提出更詳細的觀點，你們已經概述了為什麼你們是最好的案例市場上的玩家。但我只是想知道您是否可以談論為什麼現在，為什麼您認為這些零售商現在正在擴大他們的關係？這是你們正在做的事情，營運改善還是只是贏得他們的信任，以及現在推動這一點的是什麼？

Sure. Well, if you've looked at the history of the company, we have been working in the retail supply chain for over 20 years and have been, in many ways, the bearer of best practices in this marketplace. And I think what has helped continue to grow our share is our ability to provide the full range of solutions that a retail supply chain client, whether it's a brick-and-mortar omnichannel player, whether it's a born-in-the-cloud e-commerce online retailer or any hybrid, anyone of those players has a set of solutions that they can lever in our portfolio from self-directed solutions where our clients are listening directly on the platform with their own teams and their own facilities, whether they're using our distribution center platforms, locations to sell on our platform in more of a fully managed way, we're able to do business with our clients and meet them where their needs are. And we also provide different pricing models from consignment to purchase model alternatives.

當然。好吧，如果您了解公司的歷史，您會發現我們在零售供應鏈領域已經工作了 20 多年，並且在許多方面一直是這個市場最佳實踐的承載者。我認為，幫助我們繼續成長份額的因素是我們為零售供應鏈客戶提供全方位解決方案的能力，無論是實體全通路參與者，還是生於雲端的電子商務公司。混合體，這些參與者中的任何一個都擁有一套解決方案，他們可以透過自主解決方案在我們的產品組合中利用這些解決方案，我們的客戶可以透過自己的團隊和自己的設施直接在平台上聆聽，無論他們是「透過使用我們的配送中心平台和在我們平台上以更全面管理的方式進行銷售的地點，我們能夠與客戶開展業務並滿足他們的需求。我們也提供從寄售到購買模式的不同定價模式選擇。

So clients feel like they can tell us what their needs are, and we can solve for those needs versus us dictating to them to only use a specific solution or a specific pricing model. So I think that's one of the keys to growth. And then scale matters a lot. I mean, we have the largest buyer base able to buy new use salvage/returns, any type of product that is in the retail supply chain. So that large lot liquidity, that liquidity by individual SKU, the ability to do both B2B and direct-to-consumer transactions and also supplement that with expertise to protect these clients' brands to be able to move that product into different geographic locations, including outside the United States, all of those collectively are why retailers have increasingly turned to Liquidity Services.

因此，客戶覺得他們可以告訴我們他們的需求是什麼，我們可以解決這些需求，而不是要求他們只使用特定的解決方案或特定的定價模式。所以我認為這是成長的關鍵之一。規模非常重要。我的意思是，我們擁有最大的買家基礎，能夠購買新用途的廢品/退貨，以及零售供應鏈中的任何類型的產品。因此，大量的流動性、單一 SKU 的流動性、進行 B2B 和直接面向消費者交易的能力，以及補充專業知識以保護這些客戶的品牌，以便能夠將該產品轉移到不同的地理位置，包括在美國以外的地區，所有這些都是零售商越來越多地轉向流動性服務的原因。

And I think the secular growth, which you're well aware of, online retail is continuing to capture more volume, capture more product categories. That inexorable March means that there's more returns to manage and sell, which is what we do. So those are the things that I think are driving the growth of the retail to, as we said on the call, new quarterly records in GMV revenue and segment direct profit.

我認為，您很清楚，線上零售的長期成長正在繼續獲得更多的銷售、更多的產品類別。不可阻擋的三月意味著有更多的回報需要管理和出售，而這就是我們所做的。因此，我認為這些因素正在推動零售業的成長，正如我們在電話會議上所說，GMV 收入和部門直接利潤創下新的季度記錄。

Great. And then one thing I don't think we've talked about today is the real estate opportunity and bid for assets. I know you've talked in the past about making some progress. Just trying to get some of those municipalities to adopt. Going to the online auction channel, I just love an update on how you think that's going and how immediate you think that opportunity is, I think you've talked about a $100 million GMV opportunity?

偉大的。我認為我們今天沒有討論的一件事是房地產機會和資產競標。我知道您過去曾談論過要取得一些進展。只是想讓其中一些城市採用。前往線上拍賣管道，我只是喜歡了解您認為事情進展如何以及您認為機會有多直接的最新信息，我想您已經談到了 1 億美元 GMV 的機會？

Sure. Public sector real estate is definitely part of the needs of our customer base to find efficiencies and more transparency in how either government-owned or distressed real estate has brought to market. We highlighted in the quarter, we had a record real estate sale this quarter over an $8 million asset sold in an online auction marketplace -- on our online auction marketplace, GovDeal. So that was an all-time record, which is very exciting. And just an illustrative example of how big the real estate opportunity can be over time.

當然。公共部門房地產無疑是我們客戶群需求的一部分，他們希望提高政府所有或不良房地產上市方式的效率和透明度。我們在本季強調，本季我們在線上拍賣市場 GovDeal 上售出了創紀錄的房地產銷售，價值超過 800 萬美元。這是一個歷史記錄，非常令人興奮。這只是一個說明性的例子，說明隨著時間的推移，房地產機會有多大。

Our current results, frankly, hasn't been a large result of the real estate category. Real estate is something that we think will expand and grow in the next few years. It's a natural add-on to the work we've done on the personal property side, and we're committed to growing the real estate category. We look at the public sector as the right place to focus on and we have over 15,000 government entities, including states, counties, cities, public universities. And if you look at some of the trends, there's going to be a need for some of these public entities to be more efficient and probably less asset heavy with some of the real estate assets.

坦白說，我們目前的業績並不是房地產類別的重大業績。我們認為房地產將在未來幾年內擴張和成長。這是我們在個人財產方面所做工作的自然補充，我們致力於發展房地產類別。我們將公共部門視為關注的正確領域，我們擁有超過 15,000 個政府實體，包括州、縣、市、公立大學。如果你觀察一些趨勢，你會發現其中一些公共實體需要提高效率，並且可能需要減少某些房地產資產的資產負擔。

So we're well positioned to help them sell online to realize the value and more competitive auction result in value, and we provide a lot of the software and services pre- and post-sale to handle the buyer experience, the payments, the collections, the invoicing, and the settlement. So that's an opportunity to grow. Now real estate doesn't have the same level of take rate. This is a single-digit take rate. So we're really focused on growing the direct profit associated with online real estate sales.

因此，我們有能力幫助他們在線上銷售，以實現價值和更具競爭力的拍賣結果，並且我們提供大量售前和售後軟體和服務來處理買家體驗、付款和收款、開票和結算。所以這是一個成長的機會。現在房地產的接受率沒有達到同樣的水平。這是個位數的採用率。因此，我們真正專注於增加與線上房地產銷售相關的直接利潤。

And we have great capabilities there. So we expect real estate to play a role in our growth to the $2 billion milestone over the next few years. And I don't think we fully have capitalized on it yet. It's something that's certainly in our growth priorities, and we're well positioned to execute.

我們在那裡擁有強大的能力。因此，我們預計房地產將在我們未來幾年實現 20 億美元里程碑的成長中發揮作用。我認為我們還沒有充分利用它。這肯定是我們的成長重點，而且我們有能力執行。

Got it. Thanks for the detail.

知道了。謝謝你的詳細資料。

Thank you. And that does conclude our Q&A session for today as well as the conference call. Thank you all for joining. You may all disconnect.

謝謝。我們今天的問答環節以及電話會議到此結束。感謝大家的加入。你們都可以斷開連線。