Bidz.com’s Q4 net revenues rise 6%

Bidz.com’s fourth quarter ending December 31, 2010, delivered a 6 percent increase (y-o-y) in net revenues, to $29 million, but a 96 percent drop in net profits to $15,000. The company’s cost of sales rose 13 percent to $21.9 million and is attributed to affect the drop in net profits. Yet, it has been able to ‘deliver year-over-year top-line growth for the first time in approximately two years during the fourth quarter’, as is quoted in reports.

In the quarter, number of new buyers increased by 20 percent (y-o-y) to 54,271, average gross selling price per order dropped 13 percent to $180, average number of orders per day increased 20 percent to 1,883, number of items sold per day fell 5 percent to 6.89 and average, 3.7 items were sold per transaction (4.6 items in Q4 of 2009).

The company has observed a slight downturn in consumer spending in early 2011, and is cautious that revenues in this year’s first quarter could dip between $23 million and $25 million ($26.5 million in first quarter of 2010) and a resultant loss of between 3-cents and 4-cents per share in the three months. Yet it is strengthening its product offering, increasing the variety of low and high-end brand name items.