Analyst Note| Brian Bernard, CFA, CPA |
Narrow-moat rated Ritchie Bros turned in a good first-quarter performance that saw revenue and earnings growth top FactSet consensus estimates. Total revenue increased 21% year over year to $332 million (about 11.5% above consensus) and EPS grew 19% to $0.25, beating FactSet consensus by $0.01. Gross transaction volume increased 11% (8% at constant currency) year over year to $1.3 billion driven by stronger demand and pricing and a 7% increase in auction days compared with the year-ago quarter. Auctions and marketplaces service revenue as a percentage of total GTV held relatively steady compared with the prior-year period at 13.4%. However, inventory revenue surged 39% year over year driven by strong performance in Texas and from the GovPlanet business in the United States, two large construction deals in Canada, and easy sales comparisons outside of North America due in part to the pandemic's effect on prior-year results.