Executive Summary

Q4 FY24 delivered revenue of $106.9M (+34% y/y) and adjusted EBITDA of $14.5M (+13% y/y); GMV was $361.0M (+14% y/y). Results landed at or near the high end of prior guidance, with adjusted EPS at $0.32 versus the guided $0.25–$0.32 range, a modest positive surprise vs guidance driven by RSCG purchase program expansion and GovDeals’ take-rate uplift .
Mix shift toward Retail Supply Chain Group (RSCG) purchase programs lifted revenue faster than GMV; GovDeals’ revenue growth outpaced GMV on expanded services. This boosted the revenue/GMV take rate to ~29.6% in Q4, up from ~24.6% in Q3 .
Q1 FY25 outlook calls for GMV of $350–$385M, GAAP EPS of $0.08–$0.16, adjusted EPS of $0.18–$0.26, and adjusted EBITDA of $9.5–$12.5M; management also guided to ~80% consignment GMV, revenue/GMV in the low-30% range, and total segment direct profit as % of revenue in the low-40% range .
Strategic catalysts: authorization of an additional $10M share repurchase, continued AI-driven platform enhancements, and a medium-term path toward $2B GMV and $100M annual EBITDA through organic growth and bolt-ons; management targets “next few years” for these milestones, with credible execution levers across segments .

What Went Well and What Went Wrong

What Went Well
- RSCG posted new quarterly records in GMV ($95.5M), revenue ($73.7M), and segment direct profit, as retailers expanded purchase programs and sell-in-place consignment solutions; Machinio set another revenue record .
- GovDeals delivered double-digit GMV (+14%) and revenue (+26%) growth with a higher blended take rate due to service expansion (including Sierra acquisition) .
- Management highlighted AI/machine-driven functionality improving descriptions, matching, merchandising, onboarding and retargeting, and mobile experience to raise participation and recovery; incremental investment is focused on margin expansion rather than heavy spend .
What Went Wrong
- CAG GMV fell 2% y/y and revenue declined 17% on lower availability of large spot purchase transactions with international clients; segment direct profit fell 12% .
- RSCG’s mix shift toward purchase programs tempered segment direct profit margin percent y/y and sequentially, even as absolute profits grew on volume .
- From prior quarter context, management had cited softening prices in GovDeals (vehicles/construction equipment) and macro-related delays/cancellations in CAG projects—risks to monitor into FY25 .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
GMV ($M)	315.6	380.4	361.0
Revenue ($M)	80.0	93.6	106.9
GAAP Diluted EPS ($)	0.20	0.19	0.20
Adjusted Diluted EPS ($)	0.26	0.30	0.32
Adjusted EBITDA ($M)	12.8	14.7	14.5
Adjusted EBITDA Margin (%)	16.0% (12.8/80.0)	15.7% (14.7/93.6)	13.6% (14.5/106.9)
Revenue/GMV Take Rate (%)	25.3% (80.0/315.6)	24.6% (93.6/380.4)	29.6% (106.9/361.0)

Segment breakdown (Q4 y/y):

Segment Metric	Q4 2023	Q4 2024
GovDeals GMV ($000s)	184,100	210,002
GovDeals Revenue ($000s)	16,054	20,173
GovDeals Segment Direct Profit ($000s)	15,238	18,745
RSCG GMV ($000s)	74,661	95,538
RSCG Revenue ($000s)	49,561	73,704
RSCG Segment Direct Profit ($000s)	17,505	18,395
CAG GMV ($000s)	56,814	55,417
CAG Revenue ($000s)	10,681	8,904
CAG Segment Direct Profit ($000s)	8,749	7,657
Machinio Revenue ($000s)	3,678	4,163
Machinio Segment Direct Profit ($000s)	3,499	3,955

KPIs (Q4 y/y):

KPI	Q4 2023	Q4 2024
Registered Buyers (approx.)	5.1M	5.5M
Auction Participants (approx.)	836,000	1,016,000
Completed Transactions (approx.)	250,000	279,000

Notes: Consignment sales were 82% of consolidated GMV in Q4 FY24, contributing to the take-rate dynamics alongside increased RSCG purchase flows .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance / Actual	Change
GMV ($M)	Q4 FY24	$330–$365	$361.0 actual	At high end vs guidance
GAAP Diluted EPS ($)	Q4 FY24	$0.16–$0.22	$0.20 actual	In range
Adjusted EPS ($)	Q4 FY24	$0.25–$0.32	$0.32 actual	High end (bold positive vs guidance)
Adjusted EBITDA ($M)	Q4 FY24	$12–$15	$14.5 actual	Near high end
Revenue/GMV Take Rate (%)	Q4 FY24	High-20s	~29.6% actual (106.9/361.0)	At high end vs guidance
Total Segment Direct Profit / Revenue (%)	Q4 FY24	High-40s	~45.6% (sum seg DP $48.8M / $106.9M)	In-line with guide
GMV ($M)	Q1 FY25	n/a	$350–$385	New
GAAP Net Income ($M)	Q1 FY25	n/a	$2.5–$5.0	New
Adjusted EBITDA ($M)	Q1 FY25	n/a	$9.5–$12.5	New
GAAP Diluted EPS ($)	Q1 FY25	n/a	$0.08–$0.16	New
Adjusted Diluted EPS ($)	Q1 FY25	n/a	$0.18–$0.26	New
Consignment GMV Share	Q1 FY25	n/a	~80%	New
Revenue/GMV (%)	Q1 FY25	n/a	Low-30s	New
Total Segment Direct Profit / Revenue (%)	Q1 FY25	n/a	Low-40s	New
Effective Tax Rate	FY25	n/a	28%–34%	New
OpEx	Q1 FY25	n/a	Up q/q to drive growth; leverage improves 2H	New
Capital Return	Authorization	$7.6M remaining (9/30/24)	+$10M added 12/9/24	Increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 FY24)	Trend
AI/Technology initiatives	Rolled out “single item receiving tool”; harnessing AI to improve listings, search, and match; focus on platform automation .	Incremental investments in AI/machine-driven functionality to expand margins; improving mobile, onboarding, merchandising; retargeting with less friction .	Steady execution; focus shifts from build-out to margin leverage.
GovDeals supply/pricing	Seasonal strength; some softening in fleet/vehicles pricing; strong seller acquisition and service expansion (Sierra) .	Double-digit GMV/revenue; higher blended take rate; record $8.3M Wainwright building sale illustrates real estate potential .	Healthy growth; pricing softness manageable; service mix lifts take-rate.
RSCG performance/mix	GMV record in Q2; AllSurplus Deals growing; purchase programs expanding; mix pressured margins .	New records in GMV/revenue/segment DP; broader purchase programs and sell-in-place consignment; margin percent tempered by mix .	Volume acceleration with margin-rate headwind; absolute profit growth.
CAG pipeline/macro	Q2: strong industrial/heavy equipment; Q3: project delays, partner sales mix pressured revenue .	Q4: GMV -2% y/y; lower large spot purchases internationally; pipeline across heavy equipment/industrial/energy constructive for FY25 .	Mixed near-term; improving pipeline supports forward growth.
Public sector real estate (Bid4Assets)	Expanding contracts (Philadelphia ramp; new sheriff contracts) .	Record real estate sale via GovDeals ($8.3M); additional county online auctions (PA, MN) .	Early but growing contributor; single-digit take rates noted.
Buyer growth/network effects	Buyers/participants rising; network effects cited .	Auction participants +22% y/y; completed transactions +12% y/y; ~5.5M registered buyers .	Strengthening engagement supports scale and recovery.

Management Commentary

CEO (prepared remarks): “Our healthy fourth quarter results capped a successful year of market share expansion and consistent growth… each of our segments achieved double-digit annual GMV growth… we grew our auction participants and completed transactions by 22% and 12% y/y… We converted this growth to over $22 million in operating cash flow in the fourth quarter” .
Strategy and targets: “Our leadership team has now set its sights on reaching the $2 billion annual GMV milestone… towards attaining the $100 million of annual EBITDA milestone… we expect to realize these goals in the next few years” .
CFO (details): “Revenue was $106.9 million, up 34%… GAAP EPS $0.20; non-GAAP adjusted EPS $0.32… adjusted EBITDA $14.5 million, up 13%… cash and investments of $155.5 million; zero debt” .
Segment color: “Retail… up 28% GMV, up 49% revenue… GovDeals GMV up 14%, revenue up 26%… CAG down 2% GMV, down 17% revenue…” .
Outlook framing: Mix to drive ~80% consignment GMV, revenue/GMV ~30%, segment direct profit/revenue in low-40% in Q1 FY25; OpEx seasonally higher in Q1 with leverage expected in 2H .

Q&A Highlights

Buyer growth drivers: Participant expansion broad-based, led by RSCG and GovDeals; Sierra acquisition not the primary catalyst; value proposition to SMBs and consumers remains strong .
Investment cadence: Heavier investments made in prior years; going forward focused, incremental investments in AI/machine-driven features to expand margins and improve mobile experience and recovery .
Long-term targets: $2B GMV and $100M EBITDA “certainly inside of 5 years… next few years,” supported by marketplace scale, value-added non-GMV services, and bolt-on M&A; Liquidity Services positioned as consolidator of choice .
Public sector real estate: Record $8.3M building sale highlights opportunity; category has single-digit take rate but solid direct profit potential; expect contribution to $2B GMV journey .

Estimates Context

S&P Global consensus (EPS and revenue) was unavailable at time of analysis due to request limits; we attempted to retrieve but could not complete. As a result, we cannot benchmark Q4 FY24 vs Street consensus here.
Versus company guidance, Q4 results were at or near the high end: GMV $361.0M (guided $330–$365M), adjusted EPS $0.32 (guided $0.25–$0.32), and adjusted EBITDA $14.5M (guided $12–$15M), reflecting stronger revenue take-rate from RSCG purchase program expansion and GovDeals service mix .
Forward estimate implications: Q1 FY25 guidance implies y/y improvement with mix-driven take-rate in low-30% and low-40% for total segment DP/revenue, but RSCG margin percent to remain tempered vs last year given purchase mix; models may need higher revenue and lower RSCG margin rates, with EBITDA tracking in guided range .

Key Takeaways for Investors

Mix tailwinds boosted revenue growth and take rates: RSCG purchase programs and GovDeals service expansion drove revenue up 34% on 14% GMV growth, lifting revenue/GMV to ~29.6% in Q4 .
Margin-rate headwinds offset by scale: RSCG margin percent compressed on purchase mix, but absolute segment profit grew; consolidated adjusted EBITDA margin moderated to ~13.6% on heavier OpEx and mix .
Guidance execution: Q4 landed at/high end of guidance; Q1 FY25 guide implies continued y/y growth with seasonality and mix shaping profitability; watch RSCG margin percent and GovDeals pricing trends .
Balance sheet strength and capital returns: $155.5M cash/short-term investments and zero debt support organic and inorganic growth; buyback authorization increased by $10M .
Medium-term growth path: Management sees a line-of-sight to $2B GMV and $100M EBITDA in the next few years via share gains, AI-driven efficiency, buyer expansion, and bolt-ons—credible given multi-segment momentum and network effects .
Segment watchlist: Monitor CAG pipeline conversion and GovDeals pricing in fleet/heavy equipment; public sector real estate is a call option with rising activity but lower take rates .
Trading setup: Near-term catalysts include Q1 FY25 print versus guidance, continued buyer/participant growth, and evidence of AI-driven margin leverage; buyback provides incremental support .

Additional relevant press releases in Q4 FY24: GovDeals’ $8.3M sale of Missouri’s Wainwright building (segment proof point) and Bid4Assets wins in PA and MN (expanding distressed real estate auctions) .

LIQUIDITY SERVICES INC (LQDT)·Q4 2024 Earnings Summary