Overstock Q1 Loss Exceeds Wall Street Estimate

In the first quarter ended March 31, Overstock.com recorded a company net loss of $50.9 million, or $1.74 per diluted share, versus a net loss of $5.9 million, or 23 cents per diluted share, in the year-prior period.

Diluted earnings per share missed a MarketBeat-published analyst average estimate that called for a loss of 87 cents.

Net revenues were $445.3 million versus $432.4 million in the year-previous period. Direct revenue, excluding that generated by partners and from other sources, was $16.3 million versus $22.8 million in the quarter a year before. Operating loss was $54.4 million compared with an operating loss of $2.3 million in the year-before period.

The company pointed out that sales and marketing expenses totaled $77.2 million in the first quarter versus $37.6 million for the period in the fiscal year earlier primarily due to Overstock’s decision to more aggressively pursue increased revenue and new customers. In addition, it noted that a pre-tax loss of $54.7 million, as compared with $6.6 million in the fiscal year prior, derived from a pre-tax loss at Overstock retail of $33.6 million and a pre-tax loss at the company’s Medici blockchain investment operation of $21.2 million.

In addressing a previous initiative regarding potential strategic changes at the company, such as the sale of the retail business or acquisition of other operations, Patrick Byrne, Overstock founder and CEO, said, “We continue active discussion with various parties including late entrants we are helping to catch up. This does not of course guarantee a strategic event. We will pursue the option we believe maximizes shareholder value.”