Despite serving more clients, Beyond Inc.’s nameplates handled fewer orders and experienced a double-digit decline in revenue during the third quarter.
The period ended September 30 saw a 16.6% decline in total net revenue to $311 million. Orders supplied decreased 19% to 1.6 million, but active consumers rose 21.0% to 6.0 million.
In comparison to the same quarter last year, when it lost $63.0 million, or $1.39 per diluted share, the parent company of Bed Bath & Beyond, Overstock.com, and Zulily reduced its net loss to $61 million, or $1.33 per diluted share.
Dave Nielsen, president, stated, “We are focused on driving specific actions to strengthen our core asset-light e-commerce business and transforming Beyond to an affinity marketing model.”
“The company has identified four key areas of improvement in its core e-commerce business: 1) marketing efficiency, 2) sales growth, 3) margin, and 4) expense management,” he stated.
“We plan to monetize data through our improved CRM and database capabilities, establish a global loyalty program across both our owned and partnered brands, and leverage our intellectual property through a range of international licensing partnerships as we continue to transform and build out our model,” Nielsen said.
According to Adrianne Lee, chief financial and administrative officer, the company has been continuously reducing expenses and has seen a sequential improvement in gross margin. Lee cited the recent announcement of a 20% workforce reduction and the sale of Beyond’s Utah headquarters building. It is anticipated that the latter measure will result in a $20 million annual cost reduction.
Going into 2025, the corporation anticipates cutting its expense base by an average of $65 million annually.
The company is in the early phases of evolving into a new business model, according to executive chairman Marcus Lemonis, who joined the board in October 2023 and was appointed sole chairman this past February.
“With a strong technology focus, we are currently converting our asset-light business into an affinity and data monetization model. This model consists of a number of brands that are provided on a comprehensive platform that allows customers to unlock value within their home’s four walls and four corners,” he stated.
The Beyond Inc. 2024 Investor Event will be live-streamed by the firm today at 11 a.m. ET.
