Overstock.com reported third quarter earnings after the bell Monday. The Utah-based discount e-tailer reported a quarterly loss of 8 cents per share or $2.1 million, down from $1.6 million in profit last year.
Overstock brought in $391.2 million in revenue, an 11% increase year-over-year, but beneath the Yahoo Finance analyst estimate of $401.6 million. A 9% increase in total orders coupled with a 2% in order size, contributed to the rise in sales.
In a statement, CEO Patrick Byrne cited a change to Google’s search algorithm, which is negatively impacting growth. “While we work to adapt to Google’s changes, we are increasing our emphasis on other marketing channels, such as sponsored search and display ad marketing, which are generating revenue growth but with higher associated marketing expenses than natural search,” said Byrne.
Byrne also said that the company tried to further delay its earnings release, due to ongoing litigation, where the company accuses most of the prime brokerages like Morgan Stanley and Goldman Sachs of market manipulation, or shorting Overstock shares.
“I expect that there may be significant news this month, and when it appears I may schedule a conference call for interested parties,” said Byrne. “I believe that our company is due a large number and am confident going into trial.”
Overstock.com was amongst the first retailers to accept bitcoin as a payment. The digital currency has experienced significant price volatility in recent weeks.
Overstock shares were down 6% in after-hours trading. The stock is down 30% year-to-date and closed Monday at $17.
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