What is Liquidity Services Net Worth: Revenue and Key Drivers in 2024

When analyzing Liquidity Services net worth, it’s essential to dive deeper into the factors that drive their revenue and financial success.

In 2024, Liquidity Services continues to strengthen its market position through solid growth in key segments like GovDeals and RSCG.

At Ando Money, we focus on providing insights into companies’ financial performance, helping you stay informed.

Quick Facts

What is the Net Worth/Market Cap of Liquidity Services in 2024?

In 2024, Liquidity Services has a market cap of $0.67 billion, placing it among mid-tier companies in the e-commerce sector.

While its financial value is impressive, Liquidity Services is smaller compared to larger competitors in the field.

Below is a list of related companies and brands, offering a comparison point for those curious about company worth.

• GovDeals
• RSCG
• Machinio
• Bill Angrick
• Stockholders
• CAG

If you’re curious about which companies top the ranks globally, check out this list of leading corporations for a broader perspective.

Liquidity Services Financial Performance Overview

Revenue Growth and Key Financial Drivers in Recent Years

Liquidity Services has shown consistent revenue growth, driven by key sectors such as GovDeals, RSCG, and Machinio.

For the third quarter of 2024, the company reported $93.6 million in revenue, representing a 16% increase compared to Q3 of 2023.

The GovDeals segment saw the most significant growth, fueled by the expansion of full-service consignment offerings.

This segment recorded a 28% increase in revenue, contributing heavily to the company’s overall success.

Likewise, RSCG grew by 15%, although the shift in product mix led to a slight reduction in direct profit margins.

Machinio, with its subscription-based business model, also saw a solid 15% increase in revenue, demonstrating strong global demand for used equipment.

Impact of Gross Merchandise Volume (GMV) on Company Finances

GMV is a critical factor in assessing Liquidity Services’ financial performance. In Q3 2024, the company achieved a record GMV of $380.4 million, an increase of 14% from the same period in 2023.

This growth reflects strong buyer engagement across multiple segments.

• GovDeals segment contributed $249.7 million in GMV, a 17% rise, reflecting strong performances in vehicles and heavy equipment categories.
• RSCG achieved $78.9 million in GMV, driven by increased purchase volumes from clients.
• CAG generated $51.8 million, marking a 7% increase.

Cost Management and Profit Margins

While revenue growth has been strong, Liquidity Services has also effectively managed costs.

The company’s cost of goods sold (COGS) reached $44.2 million for Q3 2024, reflecting a 25.6% increase.

Despite higher expenses, profitability remains a focus, with non-GAAP Adjusted EBITDA growing by $1.4 million from the prior year to reach $14.7 million in Q3 2024.

The company’s ability to maintain profit margins across segments, despite cost fluctuations, indicates strong financial management.

Segment Performance and Financial Contributions

Each of Liquidity Services’ segments contributes significantly to overall financial performance:

• GovDeals is the largest segment, accounting for 65% of GMV and consistently growing its seller base.
• RSCG has also grown, but its focus on higher-volume, lower-touch product flows has affected its profit margins.
• Machinio continues to expand its subscription-based revenue model, showing steady growth as more buyers and sellers join the platform.

Cash Flow and Liquidity Position

Liquidity Services’ cash position is strong, with $130.3 million in cash and cash equivalents as of Q3 2024.

This figure underscores the company’s ability to reinvest in technology and service improvements while maintaining a zero-debt financial position.

Cash flow from operations has been robust, helping the company to continue expanding its marketplace reach without financial strain.

Asset Management and Investments

The company’s total assets stand at $325.5 million. Investments in technology, particularly around AI and machine learning, have improved buyer-seller matching processes, contributing to revenue growth.

Goodwill of $97.6 million also demonstrates the value Liquidity Services has built through its acquisitions and expansions in the marketplace space.

Future Financial Outlook and Growth Potential

Looking ahead, Liquidity Services is well-positioned to maintain double-digit growth in GMV and revenue.

The company’s ability to attract high-volume sellers and buyers while expanding its service offerings gives it a solid foundation for future success.

FAQs about Liquidity Services

How has Liquidity Services performed financially in 2024?

In 2024, the company reported significant financial growth, with a 16% increase in revenue, a 14% rise in GMV, and strong performance across its main business segments.

What are the key segments driving it’s growth?

GovDeals, RSCG, and Machinio are the primary segments contributing to the company’s financial success, with GovDeals leading the way in revenue and GMV growth.

What is the total revenue generated by Liquidity Services?

In Q3 2024, it generated $93.6 million in revenue, marking a 16% increase over the previous year.

What is its cash position in 2024?

It holds $130.3 million in cash and cash equivalents as of Q3 2024, reflecting a strong liquidity position.

Conclusion

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