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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