Total revenue at Overstock.com gained in the first quarter, but the company posted a loss due to its Medici Ventures blockchain distributed database operation.
Overstock net loss for the first quarter was $5.9 million, or 23 cents per diluted share, versus net income of $13.4 million, or 53 cents per diluted share, in the year-earlier quarter.
Revenues gained 5% to $432.4 million with direct revenue down to $22.8 million versus $26.7 million in the quarter a year before, but partner and other revenue up to $409.6 million from $387 million in the period a year previous.
According to Overstock, revenue growth was primarily due to a 10% increase in average order size. The company added that average order size has recently increased mostly because of a sales mix shift into home and garden products.
“The retail business had a pre-tax income of $1.4 million in the first quarter and remains fundamentally sound,” said Patrick Byrne, Overstock founder and CEO. “Our Medici business cost us $8 million pre-tax in the first quarter, which included a $4.5 million impairment charge related to our investment in Peernova. However, I remain confident that we are doing the right thing for our shareholders by having Medici pursue a position of global leadership in blockchain technology.”
Medici Ventures, a wholly owned subsidiary of Overstock.com, launched in 2014 to advance blockchain technology by operating and investing in firms building solutions in financial technology.
