Murray, Utah – Revenue tumbled, but gross margin improved as Beyond Inc. brought down expenses during the first quarter.
For the quarter ended March 31, net revenue plunged 39.4% to $232 million as the company dropped under-productive skus and pared its vendor base.
The company delivered 6.4 million orders during the quarter, down 24.9% (or 2.1 million fewer orders) compared to last year’s Q1. However, average order value rose 12.0% to $194.
Gross profit came in at $58 million, or 25.1% of net revenue, a 560 bps improvement. Sales marketing expense was $31 million, or 13.5% of net revenue, a 430 bps improvement.
Net loss narrow to $40 million compared to a net loss of $74 million in the year-ago year. Diluted net loss per share was $0.74, with adjusted diluted net loss per share (non-GAAP) at $0.42.
Beyond Inc. – the parent company of Bed Bath & Beyond, Overstock, buybuy Baby, and a blockchain asset portfolio – ended the quarter with $166 million of cash, cash equivalents, restricted cash, and inventory.
The business is now at a tipping point, according to executive chairman and principal executive officer Marcus Lemonis.
“Coming out of the restructuring, we have a clear understanding of our levers to breakeven and generate a profit. With a newly right-sized cost structure, we believe we are within 60 days of transitioning to a revenue and gross profit growth playbook,” he said.