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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment Information [Abstract] |
Segment Information |
18. | Segment Information
The Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), manages resource allocations, measures performances, reviews financial information presented on a consolidated basis. There are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. The Company considers itself to be operating within one reportable segment. On a monthly basis, the CODM considers net sales by revenue stream, gross margin, and operating expenses (excluding stock based compensation and depreciation and amortization) when making decisions about allocating capital and personnel-related resources to the reporting segment. The CODM does not use Balance Sheet information in connection with operating and investment decisions and as such that information is not presented.
|  | For the Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Direct sales revenues (1) |  | $ | 1,123,489 |  |  | $ | 1,396,624 |  |  | $ | 1,607,027 |
Marketplace revenues (2) |  |  | 25,205 |  |  |  | 32,330 |  |  |  | 47,005 |
Services revenues (3) |  |  | 86,882 |  |  |  | 68,009 |  |  |  | 66,241 |
Net sales |  |  | 1,235,576 |  |  |  | 1,496,963 |  |  |  | 1,720,273 |
Gross profit |  |  | 131,488 |  |  |  | 167,557 |  |  |  | 216,626 |
Salary and compensation |  |  | 62,064 |  |  |  | 88,108 |  |  |  | 100,615 |
Credit card fees |  |  | 28,045 |  |  |  | 35,324 |  |  |  | 42,737 |
Marketing expense |  |  | 13,950 |  |  |  | 12,674 |  |  |  | 14,701 |
Professional fees |  |  | 7,719 |  |  |  | 11,525 |  |  |  | 16,803 |
Other operating expenses (4) |  |  | 33,302 |  |  |  | 43,909 |  |  |  | 46,348 |
Total operating expenses |  |  | 145,080 |  |  |  | 191,540 |  |  |  | 221,204 |
Depreciation and amortization |  |  | 10,704 |  |  |  | 13,441 |  |  |  | 11,021 |
Stock based compensation |  |  | 27,255 |  |  |  | 33,660 |  |  |  | 33,939 |
Other expenses (income) (5) |  |  | (8,223 | ) |  |  | (12,094 | ) |  |  | 7,891 |
Net loss |  | $ | (43,328 | ) |  | $ | (58,990 | ) |  | $ | (57,429 | )
(1) | Includes all first-party product sales where Newegg owns and sells its own inventories within its websites and third-party marketplace platforms.
(2) | Includes all the commission revenues earned from sales made by sellers on its websites.
(3) | Includes all revenue recognized from providing services to customers, including third-party logistics services, advertising services, and all other third-party seller services.
(4) | Consists primarily of warehouse rent, warehouse supplies, software support & subscription, small equipment expenses, and bad debt expenses.
(5) | Consists primarily of other non-operating related income, provision for income taxes, gain from sales of investment, interest income/expense, and impairment of equity method investment.
The following table summarizes net sales by product category (in thousands):
|  | Year Ended December 31, |
Net Sales by Product Category |  | 2024 |  |  | 2023 |  |  | 2022 |
Components & Storage |  | $ | 743,514 |  |  | $ | 910,772 |  |  | $ | 1,046,095 |
Computer System |  |  | 269,414 |  |  |  | 327,263 |  |  |  | 345,949 |
Office Solutions |  |  | 71,083 |  |  |  | 80,767 |  |  |  | 96,679 |
Software & Services |  |  | 59,097 |  |  |  | 55,091 |  |  |  | 58,424 |
Networking & Smart Home |  |  | 19,999 |  |  |  | 19,191 |  |  |  | 27,198 |
Others |  |  | 72,469 |  |  |  | 103,879 |  |  |  | 145,928 |
Total Net Sales |  | $ | 1,235,576 |  |  | $ | 1,496,963 |  |  | $ | 1,720,273 |
Geographic Information Revenue by geography is based on where the customer is located. Long-lived assets, net includes property and equipment, net. The following tables set forth revenue and long-lived assets, net by geographic area (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 1,131,697 |  |  | $ | 1,362,423 |  |  | $ | 1,553,389 |
Canada |  |  | 90,037 |  |  |  | 114,948 |  |  |  | 138,123 |
Rest of world |  |  | 13,842 |  |  |  | 19,592 |  |  |  | 28,761 |
Total |  | $ | 1,235,576 |  |  | $ | 1,496,963 |  |  | $ | 1,720,273 |
|  | As of December 31, |
|  | 2024 |  |  | 2023 |
United States |  | $ | 33,391 |  |  | $ | 40,063 |
Canada |  |  | 51 |  |  |  | 76 |
Rest of world |  |  | 17,733 |  |  |  | 21,340 |
Total |  | $ | 51,175 |  |  | $ | 61,479 |

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