1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace
for luxury design products ("1stDibs" or the "Company"), today
reported financial results for its fourth quarter and year ended
December 31, 2024.
Fourth Quarter 2024 Financial
Highlights
- Net revenue was $22.8 million, an increase of 9%
year-over-year.
- Gross profit was $16.5 million, an increase of 10%
year-over-year.
- Gross margin was 72.3%, compared to 71.5% in the fourth quarter
2023.
- GAAP net loss was $5.2 million compared to a net loss of $2.9
million in the fourth quarter 2023.
- Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(1.6)
million and (7.2)%, respectively, compared to $(1.7) million and
(8.1)%, respectively, in the fourth quarter 2023.
- Cash, cash equivalents and short-term investments totaled
$103.9 million as of December 31, 2024.
Full Year 2024 Financial
Highlights
- Net revenue was $88.3 million, an increase of 4%
year-over-year.
- Gross profit was $63.4 million, an increase of 6%
year-over-year.
- Gross margin was 71.9%, compared to 70.3% in the year ended
December 31, 2023.
- GAAP net loss was $18.6 million, compared to $22.7 million in
the year ended December 31, 2023.
- Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(8.0)
million and (9.1)%, respectively, compared to $(13.3) million and
(15.8)%, respectively, in the year ended December 31, 2023.
"2024 marked a turning point, highlighted by our highest GMV
growth in three years in the fourth quarter," said David
Rosenblatt, 1stDibs Chief Executive Officer. "Market share gains
and a return to revenue growth in 2024 despite a challenging market
are clear signals that our strategy is working. We’re excited to
continue driving progress in 2025."
Tom Etergino, Chief Financial Officer of 1stDibs said, "We
achieved significant progress in 2024, reducing operating expenses
for the second consecutive year and delivering our strongest
Adjusted EBITDA margins since becoming a public company. As we
enter 2025, our focus remains on driving operating leverage and
maintaining disciplined expense management."
Other Recent Business Highlights and
Fourth Quarter Key Operating Metrics
- Gross Merchandise Value ("GMV") was $94.5 million, an increase
of 9% year-over-year.
- Number of Orders was approximately 37K, an increase of 7%
year-over-year.
- Active Buyers was approximately 64K, an increase of 6%
year-over-year.
Financial Guidance and
Outlook
The Company’s first quarter 2025 guidance is below.
Q1 2025 Guidance
GMV
$90 million - $96 million
Net revenue
$21.7 million - $22.8 million
Adjusted EBITDA margin (non-GAAP)
(12%) - (8%)
Actual results may differ materially from our Financial Guidance
and Outlook as a result of, among other things, the factors
described under “Forward-Looking Statements” below.
A GAAP reconciliation to our non-GAAP guidance measure (adjusted
EBITDA) is not available on a forward-looking basis without
unreasonable effort due to the potential variability and
uncertainty of expenses that may be incurred in the future.
Stock-based compensation expense is impacted by the timing of
employee stock transactions, the future fair market value of our
common stock, and our future hiring and retention needs, all of
which are difficult to predict and subject to change. We have
provided a reconciliation of GAAP to non-GAAP financial measures in
the financial statement tables for our historical non-GAAP
financial results included in this press release.
Webcast Information
1stDibs will host a webcast to discuss its fourth quarter and
year ended 2024 financial results today at 8:00 a.m. Eastern Time.
Investors and participants can access the webcast at the 1stDibs
Investor Relations website (investors.1stdibs.com). A replay of the
webcast will be available through the same link following the
webcast, for one year thereafter.
Disclosure Information
In compliance with disclosure obligations under Regulation FD,
1stDibs announces material information to the public through a
variety of means, including filings with the Securities and
Exchange Commission, press releases, company blog posts, public
conference calls and webcasts, as well as the investor relations
website.
About 1stDibs
1stDibs is a leading online marketplace for connecting design
lovers with highly coveted sellers and makers of vintage, antique,
and contemporary furniture, home décor, art, jewelry, watches and
fashion.
Forward-Looking
Statements
This press release contains or references "forward-looking
statements" and "forward-looking information" within the meaning of
applicable federal and state securities laws (collectively,
"forward-looking statements"). Forward-looking statements include
statements relating to our financial guidance for the first quarter
of 2025 and underlying assumptions; our ability to improve customer
engagement and frequency; our ability to align our resources with
strategic growth and profitability; and the impact of our marketing
efforts. Any statements in this press release, other than
statements of historical fact, including statements regarding our
future results of operations and financial position, business
strategy and plans, objectives of management for future operations,
long term operating expenses, and expectations for capital
requirements, may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as: "accelerate," "anticipate," "believe," "can,"
"contemplate," "continue," "could," "demand," "estimate," "expand,"
"expect," "focus," "intend," "may," "might," "objective,"
"ongoing," "opportunity," "outlook," "plan," "potential,"
"predict," "progress," "project," "should," "target," "will,"
"would," or the negative of these terms, or other comparable
terminology or similar expressions intended to identify statements
about the future.
These statements involve known and unknown risks, uncertainties,
and other factors that may cause our actual results, performance,
or achievements to be materially different from the information
expressed or implied by these forward-looking statements. These
forward-looking statements include, but are not limited to,
statements regarding the following: (1) our continued efforts to
lay the foundation for future growth; (2) our focus on efficiency
and steps to align our expenses to current demand and the impact
thereof; (3) our progress towards reaccelarating sustainable
growth, reducing our cost, increasing operating leverage, and
re-engineering our cost base; (4) the implementation of our stock
repurchase program; and (5) our future results of operations and
financial position, including our financial guidance and outlook.
We cannot guarantee that any forward-looking statement will be
accurate. Forward-looking statements are based on current
expectations of future events and if these prove to be inaccurate,
actual results could vary materially from our expectations and
projections. Investors are therefore cautioned not to place undue
reliance on any forward-looking statements. These forward-looking
statements are subject to risks, uncertainties, and other factors
that could cause actual results to vary materially from those
discussed or implied in the forward-looking statements. These risks
and uncertainties include but are not limited to the following: (1)
our ability to execute our business plan and strategies to achieve
our strategic initiatives; (2) our ability to achieve future
growth; (3) our ability to enhance GMV growth and shareholder
value; (4) our ability to effectively manage costs; (5) our ability
to execute our stock repurchase program; (6) our ability to reduce
operating costs and realign investment priorities; and (7)
macroeconomic conditions or geopolitical events or similar risks,
as well as other risks, uncertainties, and other factors discussed
in our filings with the Securities and Exchange Commission (the
“SEC”), including our Form 10-K for the year ended December 31,
2023 and other periodic reports and filings we make with the SEC.
We qualify all of our forward-looking statements by these
cautionary statements. Moreover, we operate in a very competitive
and rapidly changing environment. New risks emerge from time to
time. It is not possible for our management to predict all risks,
nor can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks,
uncertainties, and assumptions, we cannot guarantee future results,
levels of activity, performance, achievements, or events and
circumstances reflected in the forward-looking statements will
occur. These forward-looking statements speak only as of the date
of this press release and we undertake no obligation to publicly
update or revise any forward-looking statements contained herein,
whether as a result of any new information, future events, or
otherwise, except as required by law.
Key Operating Metrics
Definitions
Gross Merchandise Value
We define Gross Merchandise Value ("GMV") as the total dollar
value from items sold by our sellers through 1stDibs in a given
month, minus cancellations within that month, and excluding
shipping and U.S. sales taxes. GMV includes all sales reported to
us by our sellers, whether transacted through the 1stDibs
marketplace or reported as an offline sale. We view GMV as a
measure of the total economic activity generated by our online
marketplace, and as an indicator of the scale and growth of our
online marketplace and the health of our ecosystem. Our historical
performance for GMV may not be indicative of future performance in
GMV.
Number of Orders
We define Number of Orders as the total number of orders placed
or reported through the 1stDibs marketplace in a given month, minus
cancellations within that month. Our historical performance for
Number of Orders may not be indicative of future performance in
Number of Orders.
Active Buyers
We define Active Buyers as buyers who have made at least one
purchase through our online marketplace during the 12 months ended
on the last day of the period presented, net of cancellations. A
buyer is identified by a unique email address; thus an Active Buyer
could have more than one account if they were to use a separate
unique email address to set up each account. We believe this metric
reflects scale, engagement and brand awareness, and our ability to
convert user activity on our online marketplace into transactions.
Our historical performance for Active Buyers may not be indicative
of future performance in new Active Buyers.
1STDIBS.COM, INC.
CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands, except
share and per share amounts)
December 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
25,964
$
37,395
Short-term investments
77,919
101,926
Accounts receivable, net of allowance for
doubtful accounts of $13 and $188 at December 31, 2024 and December
31, 2023, respectively
490
643
Prepaid expenses
2,859
3,032
Receivables from payment processors
2,833
2,670
Other current assets
1,799
2,214
Total current assets
111,864
147,880
Restricted cash, non-current
3,657
3,580
Property and equipment, net
3,564
3,384
Operating lease right-of-use assets
19,728
19,655
Goodwill
4,232
4,116
Other assets
2,713
2,200
Total assets
$
145,758
$
180,815
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,228
$
3,580
Payables due to sellers
8,605
6,521
Accrued expenses
11,475
10,883
Operating lease liabilities, current
4,186
3,107
Other current liabilities
1,965
3,618
Total current liabilities
28,459
27,709
Operating lease liabilities,
non-current
17,970
18,812
Other liabilities
24
6
Total liabilities
46,453
46,527
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value;
10,000,000 shares authorized as of December 31, 2024 and December
31, 2023; zero shares issued and outstanding as of December 31,
2024 and December 31, 2023
—
—
Common stock, $0.01 par value; 400,000,000
shares authorized as of December 31, 2024 and December 31, 2023;
42,271,388 and 40,738,619 shares issued as of December 31, 2024 and
December 31, 2023, respectively; and 35,827,866 and 39,915,136
outstanding as of December 31, 2024 and December 31, 2023,
respectively
422
407
Treasury stock, at cost; 6,443,522 and
823,483 shares as of December 31, 2024 and December 31, 2023,
respectively
(31,618
)
(3,496
)
Additional paid-in capital
463,224
451,282
Accumulated deficit
(332,352
)
(313,719
)
Accumulated other comprehensive income
(loss)
(371
)
(186
)
Total stockholders’ equity
99,305
134,288
Total liabilities and stockholders’
equity
$
145,758
$
180,815
1STDIBS.COM, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except
share and per share amounts)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net revenue
$
22,770
$
20,922
$
88,257
$
84,684
Cost of revenue
6,311
5,967
24,831
25,111
Gross profit
16,459
14,955
63,426
59,573
Operating expenses:
Sales and marketing
10,504
8,633
38,084
36,640
Technology development
5,479
4,445
21,165
21,644
General and administrative
6,616
6,264
27,372
28,587
Provision for transaction losses
837
789
3,020
3,729
Total operating expenses
23,436
20,131
89,641
90,600
Loss from operations
(6,977
)
(5,176
)
(26,215
)
(31,027
)
Other income, net:
Interest income
1,247
1,706
5,942
6,639
Other, net
556
543
1,684
1,703
Total other income, net
1,803
2,249
7,626
8,342
Net loss before income taxes
(5,174
)
(2,927
)
(18,589
)
(22,685
)
Provision for income taxes
(36
)
(14
)
(44
)
(14
)
Net loss
$
(5,210
)
$
(2,941
)
$
(18,633
)
$
(22,699
)
Net loss per share—basic and diluted
$
(0.14
)
$
(0.07
)
$
(0.49
)
$
(0.57
)
Weighted average common shares
outstanding—basic and diluted
36,327,939
39,953,131
37,820,400
39,724,697
1STDIBS.COM, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Amounts in thousands)
Year Ended December
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(18,633
)
$
(22,699
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,986
2,278
Stock-based compensation expense
14,776
12,363
Provision for transaction losses, returns
and refunds
1,080
875
Amortization of costs to obtain revenue
contracts
311
326
Amortization of operating lease
right-of-use assets
3,423
2,596
Accretion of discounts and amortization of
premiums on short-term investments, net
41
(3,390
)
Other, net
(137
)
(318
)
Changes in operating assets and
liabilities:
Accounts receivable
(228
)
59
Prepaid expenses and other current
assets
44
(1,469
)
Receivables from payment processors
(163
)
(194
)
Other assets
(679
)
(2,136
)
Accounts payable and accrued expenses
(1,723
)
578
Payables due to sellers
2,083
(662
)
Operating lease liabilities
(3,259
)
(2,790
)
Other current liabilities and other
liabilities
(1,832
)
1,027
Net cash used in operating activities
(2,910
)
(13,556
)
Cash flows from investing
activities:
Maturities of short-term investments
91,983
92,653
Sales of short-term investments
18,296
—
Purchases of short-term investments
(86,368
)
(191,093
)
Development of internal-use software
(1,304
)
(1,706
)
Purchases of property and equipment
(618
)
(88
)
Other, net
302
2
Net cash provided by (used in) investing
activities
22,291
(100,232
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
817
353
Payments for repurchase of common
stock
(27,743
)
(3,374
)
Payments for taxes related to net share
settlement of stock-based compensation awards
(3,780
)
(608
)
Net cash used in financing activities
(30,706
)
(3,629
)
Effect of exchange rate changes on
cash, cash equivalents, and restricted cash
(29
)
349
Net decrease in cash, cash equivalents,
and restricted cash
(11,354
)
(117,068
)
Cash, cash equivalents, and restricted
cash at beginning of the period
40,975
158,043
Cash, cash equivalents, and restricted
cash at end of the period
$
29,621
$
40,975
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
In this press release, we provide Adjusted EBITDA, a non-GAAP
financial measure that represents our net loss adjusted to exclude:
(1) depreciation and amortization; (2) stock-based compensation
expense; (3) other income, net; and (4) strategic alternative
expenses. We also provide Adjusted EBITDA Margin, a non-GAAP
financial measure that presents Adjusted EBITDA divided by net
revenue. Below is a reconciliation of net loss, the most directly
comparable GAAP financial measure, to Adjusted EBITDA.
We have included Adjusted EBITDA and Adjusted EBITDA Margin,
which are non-GAAP financial measures, because they are key
measures used by our management team to help us to assess our
operating performance and the operating leverage in our business.
We also use these measures to analyze our financial results,
establish budgets and operational goals for managing our business,
and make strategic decisions. We believe that Adjusted EBITDA and
Adjusted EBITDA Margin help identify underlying trends in our
business that could otherwise be masked by the effect of the income
and expenses that we exclude from Adjusted EBITDA and Adjusted
EBITDA Margin. Accordingly, we believe that these metrics provide
useful information to investors and others in understanding and
evaluating our results of operations, enhances the overall
understanding of our past performance and future prospects, and
allows for greater transparency with respect to key financial
metrics used by our management in their financial and operational
decision-making. We also believe that the presentation of these
non-GAAP financial measures provides an additional tool for
investors to use in comparing our core business and results of
operations over multiple periods with other companies in our
industry, many of which present similar non-GAAP financial measures
to investors, and to analyze our cash performance.
The non-GAAP financial measures presented may not be comparable
to similarly titled measures reported by other companies due to
differences in the way that these measures are calculated. The
non-GAAP financial measures presented should not be considered as
the sole measure of our performance and should not be considered in
isolation from, or as a substitute for, comparable financial
measures calculated in accordance with GAAP. Further, these
non-GAAP financial measures have certain limitations in that they
do not include the impact of certain expenses that are reflected in
our consolidated statements of operations. Accordingly, these
non-GAAP financial measures should be considered as supplemental in
nature, and are not intended, and should not be construed, as a
substitute for the related financial information calculated in
accordance with GAAP. These limitations of Adjusted EBITDA and
Adjusted EBITDA Margin include the following:
- The exclusion of certain recurring, non-cash charges, such as
depreciation and amortization of property and equipment. While
these are non-cash charges, we may need to replace the assets being
depreciated in the future and Adjusted EBITDA does not reflect cash
requirements for these replacements or new capital expenditure
requirements;
- The exclusion of stock-based compensation expense, which has
been a significant recurring expense and will continue to
constitute a significant recurring expense for the foreseeable
future, as equity awards are expected to continue to be an
important component of our compensation strategy;
- The exclusion of other income, net, which includes interest
income related to our cash, cash equivalents and short-term
investments and realized and unrealized gains and losses on foreign
currency exchange;
- The exclusion of strategic alternative expenses in connection
with capital return strategies, buy- and sell-side mergers,
acquisitions and partnerships which include integration costs, sale
of a business or subsidiary, business optimization costs related to
revisions of operational objectives and priorities which include
restructuring charges, in all cases outside the ordinary
course.
Because of these limitations, you should consider Adjusted
EBITDA and Adjusted EBITDA Margin alongside other financial
performance measures, including net loss and our other GAAP
results. The information in the tables below sets forth the
non-GAAP financial measures along with the most directly comparable
GAAP financial measures.
1STDIBS.COM, INC.
Reconciliation of Net Loss to
Adjusted EBITDA
(Amounts in thousands)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net loss
$
(5,210
)
$
(2,941
)
$
(18,633
)
$
(22,699
)
Excluding:
Depreciation and amortization
547
463
1,986
2,278
Stock-based compensation expense
3,768
3,023
14,776
12,363
Other income, net
(1,803
)
(2,249
)
(7,626
)
(8,342
)
Provision for income taxes
36
14
44
14
Strategic alternative expenses
1,019
(15
)
1,444
3,046
Adjusted EBITDA (non-GAAP)
$
(1,643
)
$
(1,705
)
$
(8,009
)
$
(13,340
)
Divided by:
Net revenue
$
22,770
$
20,922
$
88,257
$
84,684
Adjusted EBITDA Margin (non-GAAP)
(7.2
)%
(8.1
)%
(9.1
)%
(15.8
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250228227916/en/
Media Contact: Jennifer Miller
jennifer.miller@1stdibs.com Investor Relations Contact:
Kevin LaBuz investors@1stdibs.com
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