Posted 2 years ago | by Ben Armstrong
No Effort, No Result
Overstock, the retail giant has released their Q2 2019 financial results which show a 23% decrease in their revenue along with a 19% loss in their gross profit.
A shareholder announcement which had been published on 8th August, Overstock made a statement that tZERO, the blockchain subsidiary firm is advancing according to plan and is focusing on 6 primary areas, especially security tokens.
Even though the fresh results show a drop in a majority of their metric, Overstock managed to regain a positive position in Taxes, Depreciation and Amortization, Earning Before Interest for the first time ever since Q2 2017. Also, there has been a 79 basis point augmentation in gross margin over the preceding quarter. However, marketing and sales have gone down by almost 63% within the same time frame.
It has been seen in the results that tZERO has posted a pre-tax loss of about $10 million. This had an impact on the administrative and general expenses of the firm. Overstock has revealed that tZERO accounted for only over $4.1 million of net revenue of about $373 million for Q2 2019.
As per the announcement (retail giant), Overstock was the first big retailer to accept crypto back in 2014. Medici Ventures, its commerce subsidiary had been founded in the same year.
According to reports, tZERO plans on allowing the public to trade the security token within a few days and expects to have at least 50,000 new investors among the existing shareholders of Overstock to start trading security tokens.
tZERO has been providing token trading since January. Until now it was only available to accredited investors through Dinosaur Financial Group, a digital securities brokerage account.