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On Tuesday, Wedbush reaffirmed its positive stance on Beyond Inc. (NYSE:BYON), maintaining an Outperform rating and a $15.00 price target. With a current market capitalization of $225 million and trading near its 52-week low of $3.54, Beyond Inc. reported quarterly revenue of $232 million, a 39% decrease year-over-year (YoY), which was below the anticipated $281 million by Wedbush and $288 million consensus. The adjusted EBITDA loss was reported at $13 million, outperforming both Wedbush’s expectation of a $19 million loss and the consensus of a $20 million loss. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation.
The improved profitability was attributed to the company’s strategy of discontinuing unprofitable stock keeping units (SKUs) and cutting fixed expenses. This resulted in a 21% drop in active customers and a 46% decline in orders delivered YoY. Nonetheless, the average order value saw a 12% increase YoY. To strengthen its cash position, Beyond issued $20 million in shares during the quarter, concluding with $141 million in cash reserves. InvestingPro data shows the company holds more cash than debt on its balance sheet, though it’s quickly burning through its reserves.
Management at Beyond indicated that the company is on track to resume revenue growth within 60 days, suggesting that the first quarter may represent the lowest point in terms of revenue. Wedbush analysts anticipate a sequential rise in the second quarter, with a return to YoY revenue growth expected in the second half of the year. Despite these improvements, negative EBITDA margins are expected to continue throughout 2025 as Beyond focuses on rebranding and investing in customer acquisition and retention. InvestingPro data reveals a weak overall Financial Health Score, with analysts projecting a 9% revenue decline for the current year. Discover 12 additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Beyond did not provide updated guidance with its first-quarter earnings release, but Wedbush expects that guidance will be offered in the second quarter, based on management’s comments. The firm reiterated its Outperform rating, noting that shares are likely to rise in pre-market trading due to the narrower-than-expected earnings loss. However, the full-year outlook provided by the company will be crucial in determining the stock’s performance. With analyst targets ranging from $6.50 to $16.00, and a consensus recommendation of 2.67, investors should note the stock’s high beta of 4.1, indicating significant volatility. The price target and estimates by Wedbush are currently under review, pending the details from the conference call scheduled for 8:30 am ET.
In other recent news, Beyond, Inc. reported its first-quarter financial results, showcasing a significant improvement in profitability metrics despite a notable decline in revenue. The company posted an adjusted loss of $0.42 per share, surpassing analyst expectations of a $0.63 loss. Revenue for the quarter dropped by 39.4% year-over-year to $232 million, falling short of the consensus estimate of $288.13 million. Beyond attributed this revenue decline to the elimination of non-contributory SKUs and vendors as part of its restructuring efforts. However, the company highlighted a 560 basis point expansion in gross margin to 25.1% and a 430 basis point improvement in sales and marketing expenses as a percentage of revenue. The net loss for the quarter was $40 million, representing a 46% year-over-year improvement, while the adjusted EBITDA loss narrowed by 72% to $13 million. Executive Chairman Marcus Lemonis emphasized the company’s progress towards profitability through margin optimization and cost restructuring. Beyond is optimistic about transitioning from restructuring to revenue growth within the next 60 days. The company concluded the quarter with $166 million in cash, cash equivalents, restricted cash, and inventory.
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