Newegg Commerce (NEGG) H1 2024 earnings summary

Executive summary

• Net sales declined 14.5% year-over-year to $618.1 million for the first half of 2024 amid macroeconomic headwinds and fewer new product launches.

• Gross profit fell 22.4% to $63.1 million, while net loss narrowed to $25.0 million from $29.3 million year-over-year.

• Adjusted EBITDA improved by 29% to $(7.3) million, reflecting cost control and restructuring efforts.

• Inventory and cash balances were $132.0 million and $49.7 million, respectively, as of June 30, 2024.

• Credit agreement renewed for two years, providing up to $50 million in borrowing capacity.

Financial highlights

• GMV decreased 15.4% to $746.7 million for the first half of 2024 compared to $882.5 million a year ago.

• Average order value rose to $401 from $390 year-over-year.

• Active customers dropped to 1.1 million from 1.3 million, and repeat purchase rate declined to 23.0% from 27.9%.

• Cash used in operating activities was $63.2 million, down from $75.0 million in the prior year.

Outlook and guidance

• Anticipates a rebound in sales in the second half of 2024 as consumers upgrade devices and next-gen CPUs launch.

• Focused on expanding server solutions, accelerating mainstream PC offerings, and strengthening vendor partnerships.

• Long-term outlook for core computer sales seen as positive due to AI-powered PCs and new product cycles.