Liquidity Services Inc. scored record gross merchandise volume of $380.4 million at its multiple surplus auction marketplaces in its fiscal third quarter, which ended June 30. Buyers purchased excess goods ranging from government vehicles and office supplies to used construction equipment and consumer goods.

Bill Angrick, chairman and CEO, Liquidity Services Inc.

GMV, the total value of merchandise sold by third-party sellers, rose 14% year over year in the quarter, primarily driven by government market sales. Liquidity generated a 16% increase in total Q3 revenue to $93.6 million.

The company operates auction sales across ecommerce auction marketplaces including Liquidation.com for B2B transactions; the retail consumer products-focused AllSurplus Deals and Secondipity; the government and supplies market GovDeals; Machinio for used construction and other heavy equipment; and Bid4Assets, which handles sales of property and other assets by government agencies and financial institutions.

Chairman and CEO Bill Angrick attributed the financial performance to market share gains underpinned by new and expanded services and increased buyer participation.

“These results provide a strong proof point that we are on track to achieve our near-term goal of $1.5 billion in annual GMV,” he said on a Q3 earnings call, according to a transcript from Seeking Alpha.

He added, “Our flexible services ranging from self-directed to fully managed offerings and efforts to harness the benefits of AI technologies are continuing to attract more sellers and buyers, enhancing the size and scale of our marketplace, and fueling our growth.”

Liquidity launches new online services

Angrick noted several new technology applications and services designed to upgrade merchandise management and foster online transactions between Liquidity’s marketplace buyers and sellers:

◾ An item receiving tool. Designed to expedite how Liquidity processes excess merchandise received from retailer clients, the tool “harnesses standardized available data that allows us to quickly identify the right channel for each item received,” Angrick said. He added that the tool automates a traditionally manual system,  expediting the transition to the resale market, and helps determine whether an item should sell through a B2B or B2C channel.

◾A mix of self-service and fully managed product management for sellers. “Clients can use our solutions to identify and upload assets directly; they pay a lower commission for that,” Angrick said. He added Liquidity’s fully managed service options let client retailers direct their customers to return merchandise to Liquidity’s facilities instead of their own return centers.

◾ Increased services for government and private industry excess vehicle fleets. Earlier this year, Liquidity acquired Phoenix-based Sierra Auction, which has increased Liquidity’s ability to expand its fleet market in the Southwest and provide personalized services for helping sellers catalog their assets online.

◾ A new 203,840-sq-ft reverse logistics warehouse in Brownsburg, Indiana, to accommodate more excess inventory received from retailers. Liquidity now operates nine warehouses across North America.

Liquidity counts 5.4 million registered buyers

For the third fiscal quarter ended June 30, Liquidity reported:

◾Total revenue increased 15.9% year over year to $93.61 million; the number of completed transactions rose 4% to approximately 263,000. Net income fell 7.5% to $6 million.

◾A 7% increase in the number of registered buyers to approximately 5.4 million, and a 10% increase in the number of auction participants to approximately 1.016 million.

◾GovDeals segment revenue rose 28% to $22.11 million, as GovDeals set a quarterly GMV record of $250 million. The GovDeals segment includes sales on the GovDeals, Bid4Assets and Sierra Auction marketplaces.

◾ The Retail Supply Chain Group, or RSCG, revenue increased 15.3% to $58.76 as million GMV rose 9% to $78.95 million. RSCG processes B2B sales on Liquidation.com and B2C sales on AllSurplus Deals and Secondipity.

◾Capital Assets Group, or CAG, revenue fell 3.7% to $8.65 million as GMV increased 7.5% to $51.84 million. CAG covers commercial businesses’ sales of surplus assets in industrial manufacturing, oil and gas, heavy equipment, biopharma and electronics. CAG transactions primarily occur through the AllSurplus and GovDeals marketplaces.

◾Machinio revenue increased 15.4% to $4.1 million.

For the nine months ended June 30, Liquidity reported:

◾GMV increased 13.3% to $1.01 billion.

◾Total revenue increased 9.3% to $256.39 million.

◾Net income fell 7.4% to $13.62 million.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].

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