TMCnet News
Newegg Announces Fiscal Year 2023 Results and Fiscal Year 2024 GuidanceNewegg Commerce, Inc. (NASDAQ: NEGG), a leading global technology e-commerce retailer, today announced results for the fiscal year ended December 31, 2023 and guidance for the fiscal year ending December 31, 2024. Newegg Chief Executive Officer Anthony Chow announced, "Despite the challenging environment, we remain optimistic for an exciting new product launch cycle in the second part of the year, including next generation GPUs and CPUs from AMD, Intel and NVIDIA. The range of new product launches are catered towards the increasing consumer demand for AI-driven computing performance, and Newegg believes we are well-positioned to help meet that demand. In addition, we expect several key initiatives to continue to gain traction in the second half of the year, including a focused expansion into adjacent marketplace verticals, a new AI PC product line for ABS, and the launch of Newegg Refreshed, our line of professionally refurbished products offered at an affordable price and backed by our 90-day Refreshed Guarantee. We are also excited about the launch of our recently announced loyalty program, Newegg+, which offers customers an opportunity to enjoy free shipping, exclusive member-only discounts, early access to the latest product launches, and other valuable benefits. Finally, we look forward to welcoming our valued employees to our new headquarters in Diamond Bar, California in the second half of the year, where we look to continue to foster growth and connection across our organization." Newegg Chief Accounting Officer Christina Ching noted, "In 2023, we improved our efficiency to cope with conservative consumer spending due to the macroeconomic environment. In response to this challenge, Newegg implemented multiple cost optimization initiatives, including our real estate consolidation efforts, and expects full realization of the cost saving benefits in 2024. We also increased our average inventory turnover rate and reduced total inventory from $156.0 million as of December 31, 2022, to $136.2 million as of December 31, 2023. Our cash position decreased from $122.6 million as of December 31, 2022 to $102.5 million as of December 31, 2023 after factoring in the $23.2 million cash purchase of our new corporate headquarters building in Diamond Bar, California. Furthermore, as of December 31, 2023, we had no outstanding balance under our $100 million credit facility. Finally, we have repurchased $2.0 million of our common stock during the first quarter of 2024 under our $10.0 million share repurchase program and expect to continue to opportunistically repurchase shares throughout the remainder of the year." 2023 Fiscal Year Financial Highlights
2023 Fiscal Year Operational Metrics
2024 Fiscal Year Guidance The Company currently expects to achieve the following financial performance for the upcoming year ending December 31, 2024:
The Company anticipates filing its annual report on Form 20-F for the fiscal year ended December 31, 2023, on April 24, 2024. About Newegg Newegg Commerce, Inc. (NASDAQ: NEGG), founded in 2001 and based in the City of Industry, Calif., near Los Angeles, is a leading global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology. Newegg also serves businesses' e-commerce needs with marketing, supply chain, and technical solutions in a single platform. For more information, please visit Newegg.com. Follow Newegg on X, TikTok, Instagram, Facebook, YouTube, Twitch and Discord. Non-GAAP Financial Information This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of non-GAAP financial measures used in this press release to their nearest comparable GAAP financial measures is included in the schedules attached hereto. GMV The Company defines gross merchandise value, or GMV, as the total dollar value of products sold on its websites and third-party marketplace platforms, directly to customers and by its Marketplace sellers through Newegg Marketplace, net of returns, discounts, taxes, and cancellations. GMV also includes the services fees charged through its Newegg Partner Services ("NPS") in rendering services for its third-party logistics ("3PL"), shipped-by-Newegg ("SBN"), staffing and media ad services, as well as the sales made by its Asia subsidiaries. Adjusted EBITDA Newegg calculates Adjusted EBITDA as net income/loss, excluding stock-based compensation expense, depreciation and amortization expense, interest income, net, income tax (benefit) provision, gain/loss from warrants liabilities, and gain/loss from sales of investment. Newegg believes that exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and excludes items that it does not consider to be indicative of its core operating performance. Accordingly, Newegg believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of Newegg's results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, the working capital needs; Adjusted EBITDA does not consider the potentially dilutive impact of stock-based compensation; Adjusted EBITDA does not reflect tax payments that may represent reduction in cash available to Newegg; and other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, operating profit and Newegg's other GAAP results. Cautionary Statement Concerning Forward-Looking Statements This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. Words such as "will," "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and variations of such words or similar expressions are intended to identify such forward-looking statements. In addition, any statements other than statements of historical fact are forward-looking statements. Although Newegg believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. The Company's SEC filings are available at http://www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424604170/en/ |