Overstock.com Third Quarter 2013 Financial Report
Overstock.com just announced its third quarter financial data, and the numbers look great across the board. Revenue shot way up and net profits followed suit.
Overstock is attributing its strong results to its ever-growing “Club O” rewards program.
Chairman and CEO Patrick Byrne says, “In Club O, we built what we believe is the best, most generous loyalty program on the Internet, with free shipping, 5-25% rewards on products, and books priced at Amazon prices but with 15% rewards, all for $19.95 per year. Our Club O customers are rewarding us with their business. In addition, with the opening of our new warehouse in Pennsylvania, we are now providing even faster delivery to our customers on the east coast.”
Here are some of the key metrics from the financial report for Overstock’s third quarter:
- Sales and marketing expenses rose 51% to $22.5 million from the $14.9 spent in third quarter 2012.
- Technology expenses rose 7% to $17.3 million from the $16.1 million in third quarter 2012. The increase can primarily be attributed to staff-related costs.
- Revenue rose 18% to $301.4 million from the $255.4 million earned in the third quarter of 2012. The number of orders from quarter-to-quarter increased by 2% and the average size of each order increased from $147 to $170.
- Gross profit rose 27% to $59.2 million from the $46.5 million earned in the third quarter of 2012.
- Net income rose 31% to $3.5 million from the $2.7 million earned in the third quarter of 2012.
- Diluted earnings per share rose 27% to $0.14/share from the $0.11/share that was earned in the third quarter of 2012.
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