Overstock.com 2003 Annual Report Download - page 31

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Three Months Ended
Mar. 31,
2002
June 30,
2002
Sept. 30,
2002
Dec. 31,
2002
Mar. 31,
2003
June 30,
2003
Sept. 30,
2003
Dec. 31,
2003
(in thousands)
Total revenue $12,067 $14,380 $23,808 $41,529 $29,164 $28,833 $57,788 $123,160
Add: Obligations payable to third parties upon sale of third-party merchandise 7,031 9,474 12,488 21,969 20,527 19,399 — —
Add: Sales returns and discounts 2,891 2,651 2,476 3,719 2,579 3,083 3,230 6,995
Gross merchandise sales $21,989 $26,505 $38,772 $67,217 $52,270 $51,315 $61,018 $130,155
Number of orders represents the number of individual orders for merchandise through our Websites excluding B2B orders.
Number of new B2C customers represents the number of valid new customer accounts. To establish a valid customer account, a person must provide
us with the following information and purchase merchandise on our B2C Website: a unique e-mail address; a unique password; and a verified credit
card account number.
43
Average customer acquisition cost represents total sales and marketing expense excluding B2B sales force compensation (including salary, bonus,
commission and benefits costs) divided by the number of new customers for the period presented.
Three Months Ended
Mar. 31,
2002
June 30,
2002
Sept. 30,
2002
Dec. 31,
2002
Mar. 31,
2003
June 30,
2003
Sept. 30,
2003
Dec. 31,
2003
(as a percentage of total revenue)
Direct revenue 83.2% 82.4% 87.2% 85.0% 85.6% 87.3% 50.2% 46.7%
Fulfillment partner revenue 13.7 15.5 12.0 13.6 13.6 11.9 49.3 52.7
Warehouse revenue 3.1 2.1 0.8 1.4 0.8 0.8 0.5 0.6
Total revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Cost of goods sold(1) 82.8 82.3 80.8 78.0 84.1 83.3 92.6 90.4
Gross profit 17.2 17.7 19.2 22.0 15.9 16.7 7.4 9.6
Operating expenses:
Sales and marketing expenses(2) 10.1 9.1 8.7 9.8 13.2 8.9 6.7 8.0
General and administrative
expenses(2) 23.2 15.3 10.0 8.3 15.6 11.7 7.0 4.0
Amortization of goodwill — — — — — — — —
Amortization of stock-based
compensation 7.0 5.6 2.8 1.4 1.1 0.4 0.3 0.1
Total operating expenses 40.3 30.0 21.5 19.5 29.9 21.0 14.0 12.1
Operating income (loss) (23.1) (12.3) (2.3) 2.5 (14.0) (4.3) (6.6) (2.5)
Interest income 0.2 0.3 0.9 0.2 0.5 0.5 0.2 0.1
Interest expense (2.0) (1.4) 0.0 0.0 0.0 (0.2) (0.0) (0.0)
Other income (expense), net 0.0 (3.1) 0.2 (0.2) 0.0 (0.1) 0.1 0.0
Net income (loss) (24.9)% (16.5)% (1.2)% 2.5% (13.5)% (4.1)% (6.3)% (2.4)%
(1) Amounts include stock-based
compensation of 0.8% 0.7% 0.4% 0.2% 0.1% 0.0% 0.0% 0.0%
(2) Amounts exclude stock-based
compensation as follows:
Sales and marketing
expenses 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%
General and
administrative expenses 6.8 5.5 2.7 1.3 1.1 0.4 0.3 0.1
7.0% 5.6% 2.8% 1.4% 1.1% 0.4% 0.3% 0.1%
Our direct revenue and fulfillment partner revenue have increased in every quarter on a year-over-year basis. The general increase in total revenue is due
to the expansion of our customer base as we attracted more visitors to our Websites, as well as repeat purchases from these customers. We have experienced
(3)
(4)
(5)