uSell.com Announces Record Quarterly Results

NEW YORK, Aug. 19, 2013 /PRNewswire/ -- uSell.com (USEL), the first US-based reCommerce marketplace that instantly finds cash offers for used smartphones and electronics, announced today record results for the second quarter ended June 30, 2013.

Highlights:

• Revenues of $1,224,000 in the second quarter of 2013, up 107% from revenues of $591,000 in the second quarter of 2012
• 6^th consecutive quarter of sequential revenue growth
• Gross margins above 90% for the 6^th consecutive quarter
• Operating loss of $1,135,942 in the second quarter of 2013, a $836,143 improvement from operating loss of $1,972,085 in the second quarter of 2012
• Cash operating loss of $650,000 in the second quarter of 2013, a $200,000 improvement from cash operating loss of $850,000 in the second quarter 2012
• Continued improved efficiency of marketing spend
• Unique visitors reaching a record 800,000 monthly in June
• Repeat customers usage trending upward to 13-15% range
• $20 million value of consumer electronic devices processed to-date since launch in January 2012

Financial Results:

Second Quarter 2013 Compared to Second Quarter 2012
For the second quarter of 2013, revenues reached a record $1.2 million, a 107 percent increase from $0.6 million in the second quarter of 2012. The increase in revenue is primarily due to increased marketing spend, improved marketing efficiency and an increase in trading partners. Gross profit margin of 92 percent was realized in the second quarter, the 6^th consecutive quarter of 90%+ gross margins. Operating loss for the second quarter improved by $0.8 million, from $1.9mm in the second quarter of 2012 to $1.1 million in the second quarter of 2013. The decrease in operating loss was primarily due to improved marketing efficiency and increased revenue. Of note, the cash operating loss for the second quarter improved by $0.2 million, from $0.85 million in the second quarter of 2012 to $0.65 million in the second quarter of 2013. The Company's GAAP net loss for the second quarter improved by $5.0 million, from a loss of $6.1 million in the second quarter of 2012 to a loss of $1.1 million in the second quarter of 2013. The resulting GAAP EPS is ($0.02), as compared to ($0.47) a year earlier. GAAP net loss and EPS results from the second quarter of 2012 include a change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $4.2 million.

Year-to-Date 2013 Compared to Year-to-Date 2012
For the first six months of 2013 ended June 30, 2013, revenues were $2.3 million, a 172 percent increase from $0.8 million in the first six months of 2012. Gross profit margin of 92 percent was realized in the first six months ended June 30, 2013, similar to a 91 percent gross profit margin a year earlier. Operating loss for the first six months of 2013 was approximately flat with the first six months of 2012 at $2.7 million. Of note, the cash operating loss for the first six months of 2013 improved by $0.6 million, from $1.8 million in the first six months of 2012 to $1.2 million in the first six months of 2013. GAAP net loss for the first six months improved by $4.6 million, from a loss of $7.3 million in the first six months of 2012 to a loss of $2.7 million in the first six months of 2013. The resulting GAAP EPS is ($0.04), as compared to ($0.77) a year earlier. GAAP net loss and EPS results from the first six months of 2012 include a change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $4.3 million.

Other Business Updates:

The uSell.com reCommerce marketplace that instantly finds cash offers for used products recently expanded into new resale product categories. These days, everyone has old cell phones, tablets, laptops, clothing, and books lying around.  According to research firm NPD Group, the average household is sitting on $7,000 of unused stuff.  For uSell.com, launching into additional categories leverages its solid customer experiences.

"There's a huge opportunity to leverage our existing platform and customer base to expand into new verticals," stated CEO Sergio Zyman.  "Our mission is to enable consumers to unlock the value of their unused household items with as little hassle as possible.  This applies to more than just electronics."

The company has also recently begun to expand its reCommerce marketplace reach by offering its platform via a white-label private solution, whereby other websites will promote access to its trade-in platform. This type of offering with strategic partners is targeting additional consumers who may not be aware of uSell.com and should over time lower the companies cost of customer and device acquisition.

The market opportunity in cell phones and consumer electronics remains very much untapped. The awareness and education of the consumer in regards to the value of their older devices is still in its infancy. Key drivers over the next few quarters and years should unlock this value, drive awareness and greatly increase the market opportunity for uSell.com. Both hardware manufacturers, such as Apple, and wireless operators, such as Verizon Wireless, have started to promote the values of older devices, the ability to trade-in and encourage faster turnover of devices.

"We continue to be excited about our consumer electronics focus as industry drivers and consumer awareness and education are expected to spur continued growth, stated COO Nik Raman. Recently, Verizon Wireless and T-Mobile launched new programs encouraging wireless customers to upgrade their devices more frequent, no longer being held to two-year contracts in order to get discounted new device pricing."

uSell.com's repeat customer usage trend toward 13-15% has not realized the true benefit of the typical two-year cycle for a consumer to upgrade his cell phone. The uSell.com platform launched less than two years ago, so most of the sellers would likely have at least a second cell phone to transact with over the next year. This repeat customer trend could further be enhanced by the launch of shorter cycles encouraging consumers to upgrade their cell phones in 6-12 months.

About uSell.com, Inc.
uSell.com is a reCommerce marketplace that helps individuals turn unused items into cash.  uSell ensures that customers get the highest payouts with the least amount of hassle by facilitating risk-free transactions with professional buyers. For uSell's buyers, uSell offers a scalable technology, marketing, logistics, and analytics solution that provides a high volume of inventory at a low acquisition cost. Visit www.uSell.com

Forward-Looking Statements
This press release includes forward-looking statements including statements regarding opportunities for our platform, expected growth and strategic plans for accelerated expansion.  The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements.  We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.  The results anticipated by any or all of these forward-looking statements might not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include providing consumers with a sufficient number of partners that furnish offers on our site, competition from large retail stores and wireless operators, the effectiveness of our advertising campaigns, success of the new offerings on our site, and the willingness of people to use us to help them monetize and recycle their small consumer electronic items and other new offering. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

Contact Information
Hayden IR
[email protected] 
917-658-7878

SOURCE uSell.com