Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 84

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 84
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our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital.

GMV

GMV is the total dollar value of products sold
on our websites and third-party marketplace platforms, directly to customers and by our Marketplace sellers through Newegg Marketplace,
net of returns, discounts, taxes, and cancellations. GMV also includes the services fees charged through our NPS in rendering services
such as 3PL, SBN, staffing and media ad services, as well as the sales made by our Asia subsidiaries. It helps us assess and analyze changes
in revenues, and if reviewed in conjunction with net sales and other GAAP financial measures, it can provide more information in
evaluating our current performance and in assessing our future performance. See “ - Newegg’s Business Model.”

                              For the Year Ended December 31,                                                             
                              2024                                              2023                   2022               
                              (in millions)                                                                               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net Sales                   $                                    1,235.6      $         1,497.0      $         1,720.3  
  Adjustments:                                                                                                            
  GMV – Marketplace                                                  318.6                  369.7                  552.2  
  Marketplace Commission                                             (25.9                  (33.6                  (49.6  
  Deferred Revenue                                                     7.1                   (5.4                   (9.3  
  Other                                                               (1.7                  (15.2                  (17.5  
  GMV                         $                                    1,533.7      $         1,812.5      $         2,196.1  

Adjusted EBITDA

Adjusted EBITDA is a financial measure that includes
the removal of various one-time, irregular, and non-recurring items from EBITDA. We believe that exclusion of certain expenses in
calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and excludes items that we do not
consider to be indicative of our core operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information
to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of