1847 Goedeker Inc. (GOED) Reports Q3 Revenues of $13.4M

1847 Goedeker Inc. (NYSE: GOED) reported Q3 revenue for the quarter came in at $13.4 million, versus $12.2 million reported last year.

Business Highlights:

• Site sessions increased 80% to 2.7 million in the third quarter of 2020, up from 1.5 million in the prior year period.
• Written orders in the quarter ended September 30, 2020, reached $36.9 million, up 143% from $15.2 million in the prior year period.
• Shipped orders increased to $13.4 million in the third quarter of 2020, up 10.1% from $12.2 million in the prior year period.
• Completed IPO on NYSE American on August 4, 2020; raised net proceeds of approximately $9 million.
• Art Smuck, former CEO of FedEx Supply Chain, joined Goedeker’s as Senior Strategic Advisor for Logistics to support accelerated growth plans.
• Reduced annual debt service by $410,000 through 3.25% loan refinancing.
• Expanded customer financing options with multiple new third-party offerings with no credit risk or balance sheet impact to the Company.
• Appointed new VP of Logistics, Jacob Guilhas, to accelerate preparations for record revenue growth.
• Signed purchase agreement to acquire Appliances Connection, ranked #1 in online appliance retail by USA Today, creating one of the largest independent online retailers of household appliances in the U.S.; upon closing, the Company’s revenue is expected to reach $400M on an annualized basis in 2021, with approximately $30M in EBITDA.

“I am excited report another strong quarter of revenue growth as well as continued sharp improvement in our cash flow from operations,” stated Doug Moore, CEO of 1847 Goedeker. “The increased marketing spend led to record orders and cash on the balance sheet which will convert to revenues as supply of appliances returns closer to normal levels. Customers continue to find our online offering compelling and we will continue to invest in the sea change shift to online appliance buying.”

Moore continued, “We are pleased with the growth in site sessions and orders and with cash flow from operations. The lack of available product meant that we were able to ship only 37% of our orders in the 2020 quarter, compared to more than three years of shipped trends over 80%. The significant increase in orders required us to use temporary staff to supplement our permanent staff in order processing, customer service, and accounting. Had we not experienced supply chain disruptions from COVID-19, we believe that Goedeker’s would have realized $2.5 million to $2.7 million in additional net margin contribution and we believe that expenses would have been reduced by $500k to $750k due to reduction in variable expenses related to lack of supply. A near term look beyond supply constraints point towards mid-term profitability.”

“We are addressing a $20 billion industry as the only pure play appliance online retailer listed on a major exchange, and we are still at an early stage of capitalizing on this tremendous opportunity,” continued Moore. “Over the past year, we have been investing in people, processes and systems, while developing a world-class advertising and marketing platform in order to continue to drive significant revenue growth and dramatically increase our market share as we continue to execute on our vision of growing Goedeker’s to a billion-dollar revenue company, and in the process, becoming the largest, most profitable online retailer of appliances in the U.S.”

For earnings history and earnings-related data on 1847 Goedeker Inc. (GOED) click here.

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