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Segment Information
 3 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
14.
Segment Information

The Company has four operating and reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Further information and operating results of our reportable segments can be found in Note 14 - Segment Information.

•
GovDeals. The GovDeals reportable segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through its GovDeals, Bid4Assets and Sierra marketplaces; see Note 3 - Sierra Acquisition.
•
RSCG. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce solutions. This segment uses multiple selling channels across our network of marketplaces and others to optimize the best combination of velocity, volume, and value. This segment primarily conducts its business-to-business sales on its Liquidation.com marketplace and through Direct Sales, and direct-to-consumer sales on its AllSurplus Deals and Secondipity marketplaces and other third-party sales channels.
•
CAG. The CAG reportable segment enables commercial businesses to sell surplus assets on our AllSurplus marketplace. The core verticals in which CAG operates include industrial manufacturing, oil and gas, heavy equipment, biopharma, and electronics. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. CAG benefits from a global base of buyers and sellers enabling the sale and redeployment of assets wherever they’re most likely to generate the best value and highest use across the world. This segment primarily uses the AllSurplus and GovDeals marketplaces.
•
Machinio. The Machinio reportable segment operates a global search engine platform for listing equipment for sale in the construction, machine tool, processing, transportation, printing, agriculture, and laboratory/medical sectors. Machinio also offers the Machinio System service that provides equipment sellers with a suite of software tools that includes website hosting, email marketing, and inventory management, to support and enable equipment sellers’ online business.

We also report results for Corporate, including elimination adjustments.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports reportable segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment direct profit to evaluate the performance of each segment. Segment direct profit, previously referred to as segment gross profit, continues to be calculated as total revenue less cost of goods sold (excludes depreciation and amortization).

The following table sets forth certain financial information for the Company's reportable segments:

 

 

 

Three Months Ended December 31,

 

(in thousands)

2024

 

 

2023

 

GovDeals:

 

 

 

 

 

 

 

Purchase revenue

$

512

 

 

$

—

 

 

Consignment and other fee revenues

 

20,010

 

 

 

15,900

 

 

Total revenue

 

20,522

 

 

 

15,900

 

 

Segment direct profit

$

18,816

 

 

$

15,056

 

 

 

 

 

 

 

 

RSCG:

 

 

 

 

 

 

Purchase revenue

$

80,685

 

 

$

35,293

 

 

Consignment and other fee revenues

 

6,996

 

 

 

8,428

 

 

Total revenue

 

87,681

 

 

 

43,721

 

 

Segment direct profit

$

18,495

 

 

$

14,112

 

 

 

 

 

 

 

 

CAG:

 

 

 

 

 

 

Purchase revenue

$

1,618

 

 

$

932

 

 

Consignment and other fee revenues

 

8,233

 

 

 

6,902

 

 

Total revenue

 

9,851

 

 

 

7,834

 

 

Segment direct profit

$

8,796

 

 

$

6,943

 

 

 

 

 

 

 

 

Machinio:

 

 

 

 

 

 

Purchase revenue

$

—

 

 

$

—

 

 

Consignment and other fee revenues

 

4,294

 

 

 

3,886

 

 

Total revenue

 

4,294

 

 

 

3,886

 

 

Segment direct profit

$

4,077

 

 

$

3,703

 

 

 

 

 

 

 

 

Corporate, including elimination adjustments:

 

 

 

 

 

 

Purchase revenue

$

—

 

 

$

—

 

 

Consignment and other fee revenues

 

(17

)

 

 

(16

)

 

Total revenue

 

(17

)

 

 

(16

)

 

Segment direct profit

$

(17

)

 

$

(16

)

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Purchase revenue

$

82,815

 

 

$

36,225

 

 

Consignment and other fee revenues

 

39,516

 

 

 

35,100

 

 

Total revenue

 

122,331

 

 

 

71,325

 

 

Total Segment direct profit

$

50,167

 

 

$

39,798

 

 

The following table reconciles segment direct profit used in the reportable segments to the Company's condensed consolidated results:

 



Three Months Ended December 31,

 

(in thousands)

2024

 

 

2023

 

Reconciliation:



 

 



 

Total segment direct profit

$

50,167

 

 

$

39,798

 

Other costs and expenses from operations (1)

 

42,964

 

 

 

37,707

 

Interest and other income, net

 

(987

)

 

 

(697

)

Income before provision for income taxes

$

8,190

 

 

$

2,788

 

 

(1)
Other costs and expenses from operations is defined as Total costs and expenses from operations per the Condensed Consolidated Statements of Operations, less Cost of goods sold (which is included in the calculation of Segment direct profit).

 

The percent of our revenues that came from transactions conducted outside of the United States for the three months ended December 31, 2024 and 2023, was 9.8% and 12.1%, respectively.