Overstock.com today reported financial results for the second quarter, attributing $783 million of net revenue, an increase of 109%, to on-line retail sales growth. This is good news for CEO Jonathan Johnson’s core business line, but he said an interview that blockchain is the future of growth for his company.
Jonathan Johnson said, “In a rapidly shifting and challenging environment, Overstock continues to perform exceptionally well. Second-quarter gross sales in our Overstock Retail business more than doubled year over year. The number of new customers more than tripled year over year. Importantly, our customers are buying our core products—home furnishings—from the safety of their homes as part of the country’s new normal. If business continues as I expect, our Overstock Retail business will achieve sustainable, profitable growth this year.” He continued, “tZERO and our other Medici Ventures blockchain-based businesses continue to make progress, with several of those companies attracting media attention for their solutions to problems the country now faces. As an organization, Overstock remains focused, disciplined, and resilient as our employees execute against our strategic initiatives.”
In the interview, Jonathan Johnson favored more blockchain support, and he sees blockchain leading to better innovations adding to Overstock’s revenue potential. Here are some examples.
tZERO recently added a new digital token, ASPEN, trading on their alternative trading system, which is based on blockchain technology. The ASPEN shares represent $18 million of indirect ownership in the St. Regis Aspen Resort, Colorado. The token is also the first non-overstock supported security to trade at the company. Will this change the way we sell securities? Will this start a rush of institutional investors adopting digital tokens? Maybe, but there is a long way to go.
Medici Ventures has been active in addressing different industries using blockchain in different use-cases. An example, Voatz, a Medici Venture Start-up specializing in voting technology, has made headlines in some recent large-scale elections. While some have criticized Voatz as a security risk, many have supported their continued support for the technology. The company has completed both Arizona and South Dakota elections trials, showing no signs of slowing down.
Other blockchain examples supported by Overstock are based in supply chain, Grain Chain, for example, and other payment services. Most notable for Jonathan Johnson was the decision to issue an overstock digital dividend through tZERO.
Overstocks Q2 Financial Highlights:
- Total net revenue was $783 million, an increase of 109% year over year
- Gross profit was $180 million or 23.0% of total net revenue, an improvement of 321 basis points year over year
- Net income attributable to stockholders of Overstock.com, Inc. was $36 million, an improvement of $61 million years over year
- Diluted earnings per share were $0.84, an improvement of $1.53 year over year
- Adjusted EBITDA (non-GAAP) was $42 million, an improvement of $55 million year over year