Gold.com, Inc. Q1 FY2025 earnings call

• Greg noted the continued strength of the fully integrated platform despite macro challenges, amended the Trading Credit Facility to September 2026, advanced logistics expansion and automation, made progress in Singapore trading office, and Silver Towne Mint's acquisition of Regency Mint.
• Kathleen detailed financial results including revenue, gross profit, SG&A, depreciation, interest, etc.
• Thor discussed operating metrics: gold and silver ounces sold down, DTC new customers up 41%, total DTC customers up 31%, average order value up, inventory turnover 2.3, secured loans down.

Revenues for fiscal Q1 2025 increased 9% to $2.72 billion from $2.48 billion in Q1 2024. Excluding forward sales, revenues increased $13.1 million or 0.9% due to higher average selling prices of gold and silver offset by lower ounces sold. The DTC segment contributed 18% of consolidated revenue in Q1 2025 compared to 13% in Q1 2024. JMB contributed 11% of consolidated revenue in Q1 2025 vs. 12% in Q1 2024. Gross profit decreased 12% to $43.4 million (1.6% of revenue) from $49.4 million (1.99% of revenue) in Q1 2024. Direct-to-Consumer gross profit was 54% of consolidated gross profit in Q1 2025 vs. 43% in Q1 2024. JMB's gross profit was 37% of consolidated gross profit in Q1 2025 vs. 36% in Q1 2024. SG&A expenses increased 22% to $26.6 million. Depreciation and amortization expense increased 69% to $4.7 million. Interest income increased 16% to $7.1 million. Interest expense increased 2% to $10 million. Net income attributable to the company was $9 million or $0.37 per diluted share in Q1 2025, down from $18.8 million or $0.77 per diluted share in Q1 2024. Adjusted net income before provision for income taxes decreased 45% to $14.8 million. EBITDA decreased 41% to $17.8 million.

• Cautiously optimistic about macro headwinds shifting to increase demand across wholesale and retail segments.
• Anticipates benefits from logistics expansion and automation, Singapore presence, and potential M&A activity.

• Failure to execute growth strategy as planned.
• Greater than anticipated costs to execute strategy.
• Changes in domestic and international political climate.
• Increased competition depressing pricing.
• Business model not responding to market changes.
• General risks of doing business in commodity markets.

Q: How should we think about the levers to stimulate demand?

A: Greg mentioned increasing marketing expenses, capitalizing on increased demand weeks, and noting premium expansion and inventory positioning.

Q: Thoughts on strategic M&A?

A: Greg talked about the Silver Towne acquisition being timely and having an active M&A funnel with potential deals in the next 90 days.

Q: What makes you think macro headwinds will shift?

A: Greg referenced spot price trends, diminished buybacks, and a potential shift in retail buyer sentiment with lower spot prices.

Q: How should we frame SG&A growth?

A: Greg noted over $5 million of SG&A increase was related to new acquisitions, with back-ended SG&A being consistent.

Q: Which markets are being looked at for M&A?

A: Greg said deals are broad, covering various parts of the business, focusing on DTC and wholesale growth.

Q: Thoughts on the competitive front?

A: Greg mentioned tracking new customers, DTC success, and wholesale struggles due to market premiums, but positive on market share gains.