NEW YORK, Aug. 19, 2013 /PRNewswire/ -- uSell.com (USEL),
the first US-based reCommerce marketplace that instantly finds cash
offers for used smartphones and electronics, announced today record
results for the second quarter ended June
30, 2013.
Highlights:
- Revenues of $1,224,000 in the
second quarter of 2013, up 107% from revenues of $591,000 in the second quarter of 2012
- 6th consecutive quarter of sequential revenue
growth
- Gross margins above 90% for the 6th consecutive
quarter
- Operating loss of $1,135,942 in
the second quarter of 2013, a $836,143 improvement from operating loss of
$1,972,085 in the second quarter of
2012
- Cash operating loss of $650,000
in the second quarter of 2013, a $200,000 improvement from cash operating loss of
$850,000 in the second quarter
2012
- Continued improved efficiency of marketing spend
- Unique visitors reaching a record 800,000 monthly in June
- Repeat customers usage trending upward to 13-15% range
- $20 million value of consumer
electronic devices processed to-date since launch in January 2012
Financial Results:
Second Quarter 2013 Compared to Second Quarter
2012
For the second quarter of 2013, revenues reached a
record $1.2 million, a 107 percent
increase from $0.6 million in the
second quarter of 2012. The increase in revenue is primarily due to
increased marketing spend, improved marketing efficiency and an
increase in trading partners. Gross profit margin of 92 percent was
realized in the second quarter, the 6th consecutive
quarter of 90%+ gross margins. Operating loss for the second
quarter improved by $0.8 million,
from $1.9mm in the second quarter of
2012 to $1.1 million in the second
quarter of 2013. The decrease in operating loss was primarily due
to improved marketing efficiency and increased revenue. Of note,
the cash operating loss for the second quarter improved by
$0.2 million, from $0.85 million in the second quarter of 2012 to
$0.65 million in the second quarter
of 2013. The Company's GAAP net loss for the second quarter
improved by $5.0 million, from a loss
of $6.1 million in the second quarter
of 2012 to a loss of $1.1 million in
the second quarter of 2013. The resulting GAAP EPS is ($0.02), as compared to ($0.47) a year earlier. GAAP net loss and EPS
results from the second quarter of 2012 include a change in fair
value of derivative liability relating to conversion feature of
Series A preferred stock of $4.2
million.
Year-to-Date 2013 Compared to Year-to-Date 2012
For
the first six months of 2013 ended June 30,
2013, revenues were $2.3
million, a 172 percent increase from $0.8 million in the first six months of 2012.
Gross profit margin of 92 percent was realized in the first six
months ended June 30, 2013, similar
to a 91 percent gross profit margin a year earlier. Operating loss
for the first six months of 2013 was approximately flat with the
first six months of 2012 at $2.7
million. Of note, the cash operating loss for the first six
months of 2013 improved by $0.6
million, from $1.8 million in
the first six months of 2012 to $1.2
million in the first six months of 2013. GAAP net loss for
the first six months improved by $4.6
million, from a loss of $7.3
million in the first six months of 2012 to a loss of
$2.7 million in the first six months
of 2013. The resulting GAAP EPS is ($0.04), as compared to ($0.77) a year earlier. GAAP net loss and EPS
results from the first six months of 2012 include a change in fair
value of derivative liability relating to conversion feature of
Series A preferred stock of $4.3
million.
Other Business Updates:
The uSell.com reCommerce marketplace that instantly finds cash
offers for used products recently expanded into new resale product
categories. These days, everyone has old cell phones, tablets,
laptops, clothing, and books lying around. According to
research firm NPD Group, the average household is sitting on
$7,000 of unused stuff. For
uSell.com, launching into additional categories leverages its solid
customer experiences.
"There's a huge opportunity to leverage our existing platform
and customer base to expand into new verticals," stated CEO
Sergio Zyman. "Our mission is
to enable consumers to unlock the value of their unused household
items with as little hassle as possible. This applies to more
than just electronics."
The company has also recently begun to expand its reCommerce
marketplace reach by offering its platform via a white-label
private solution, whereby other websites will promote access to its
trade-in platform. This type of offering with strategic partners is
targeting additional consumers who may not be aware of uSell.com
and should over time lower the companies cost of customer and
device acquisition.
The market opportunity in cell phones and consumer electronics
remains very much untapped. The awareness and education of the
consumer in regards to the value of their older devices is still in
its infancy. Key drivers over the next few quarters and years
should unlock this value, drive awareness and greatly increase the
market opportunity for uSell.com. Both hardware manufacturers, such
as Apple, and wireless operators, such as Verizon Wireless, have
started to promote the values of older devices, the ability to
trade-in and encourage faster turnover of devices.
"We continue to be excited about our consumer electronics focus
as industry drivers and consumer awareness and education are
expected to spur continued growth, stated COO Nik Raman. Recently, Verizon Wireless and
T-Mobile launched new programs encouraging wireless customers to
upgrade their devices more frequent, no longer being held to
two-year contracts in order to get discounted new device
pricing."
uSell.com's repeat customer usage trend toward 13-15% has not
realized the true benefit of the typical two-year cycle for a
consumer to upgrade his cell phone. The uSell.com platform launched
less than two years ago, so most of the sellers would likely have
at least a second cell phone to transact with over the next year.
This repeat customer trend could further be enhanced by the launch
of shorter cycles encouraging consumers to upgrade their cell
phones in 6-12 months.
About uSell.com, Inc.
uSell.com is a reCommerce
marketplace that helps individuals turn unused items into
cash. uSell ensures that customers get the highest payouts
with the least amount of hassle by facilitating risk-free
transactions with professional buyers. For uSell's buyers, uSell
offers a scalable technology, marketing, logistics, and analytics
solution that provides a high volume of inventory at a low
acquisition cost. Visit www.uSell.com
Forward-Looking Statements
This press release includes
forward-looking statements including statements regarding
opportunities for our platform, expected growth and strategic plans
for accelerated expansion. The words "believe," "may,"
"estimate," "continue," "anticipate," "intend," "should," "plan,"
"could," "target," "potential," "is likely," "will," "expect" and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. The results
anticipated by any or all of these forward-looking statements might
not occur. Important factors that could cause actual results to
differ from those in the forward-looking statements include
providing consumers with a sufficient number of partners that
furnish offers on our site, competition from large retail stores
and wireless operators, the effectiveness of our advertising
campaigns, success of the new offerings on our site, and the
willingness of people to use us to help them monetize and recycle
their small consumer electronic items and other new offering.
Further information on our risk factors is contained in our filings
with the SEC, including our Annual Report on Form 10-K. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as the result of new
information, future events or otherwise.
Contact Information
Hayden IR
hart@haydenir.com
917-658-7878
SOURCE uSell.com