Overstock’s Q2 2019 Financial Results: Navigating Challenges and Embracing Blockchain Innovation

Financial Performance Overview

In the rollercoaster ride of retail, Overstock’s recent Q2 2019 report is a tale of mixed fortunes. The company reported a notable 23% decrease in revenue and a troubling 19% drop in gross profit. However, not all is doom and gloom. In a dramatic twist, Overstock achieved a positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the first time since Q2 2017. It’s like finding a dollar in your couch cushions—unexpected but certainly appreciated!

tZERO’s Progress in Blockchain

The star of Overstock’s future, its blockchain subsidiary tZERO, is reportedly making strides, particularly in the development of security tokens. Despite navigating through financial turbulence, tZERO is laser-focused on six key areas crucial for its growth. The net contribution of tZERO in Q2? Just a little over $4.1 million of Overstock’s total net revenue, which stood at approximately $373 million. It seems like the little blockchain is still trying to find its footing!

The Good, the Bad, and the Ugly

While tZERO’s almost $10 million pre-tax loss is a stark reminder of the challenges ahead, its impact on Overstock’s overall G&A expenses has been manageable. G&A expenses hit $32 million for Q2 2019, up slightly from last year, primarily due to a decrease in cryptocurrency gains. Ironically, less activity can sometimes mean more to report—who knew losses could have such a loud voice?

Big Moves in Cryptocurrency

Overstock isn’t just sitting on its hands. In fact, it’s been a trailblazer in the retail world for cryptocurrency adoption, ever since it first accepted crypto payments back in 2014. The founding of its blockchain venture Medici Ventures was a signal of its commitment to embracing digital currencies. Now, with tZERO planning to let the public trade its security tokens very soon, it’s creating excitement. Imagine 50,000 new investors jumping onto the trading scene—overstocking the competition, so to speak!

Looking Forward: Patent Pending!

In a cherry on top of this blockchain sundae, tZERO recently secured a patent for a technology that simplifies the connection of traditional trades to public blockchains. This move could revolutionize trading as we know it—like turning the once-chaotic staples of Wall Street into a smooth jazz piece at a swanky bar.

Overall, Overstock’s journey through Q2 2019 reflects the challenges and triumphs of any innovative pioneer. They’re not just surviving in a sea of figures; they’re navigating towards the future of commerce—one blockchain transaction at a time!