Summary of 1Stdibs.Com (DIBS) FY Conference June 12, 2025 Company Overview - **Company Name**: 1Stdibs.Com (DIBS) - **Industry**: Luxury Design Marketplace - **Business Model**: Two-sided marketplace, asset-light model with a focus on luxury items including furniture, jewelry, fashion, and art [2][4][6] Key Points Business Model and Operations - **Item Listings**: 1,840,000 items from 6,000 curated professional sellers [4] - **Revenue Composition**: 75% from commissions on sales, 21-22% from subscriptions, and the remainder from advertising [6][44] - **Average Order Value (AOV)**: Approximately $2,600 to $2,700, significantly higher than competitors [7][23] - **Market Position**: Strong brand recognition and trust, with a unique competitive position in the luxury digital marketplace [20][26] Market Dynamics - **Target Audience**: 70% consumers and 30% interior designers, with a skew towards high net worth individuals aged 50+ [5][7] - **Geographic Reach**: 75% of sellers are based in 75 countries, with 50% of items and 40% of sellers located outside the US [21][22] - **Market Trends**: The luxury furniture market has been shrinking, but 1Stdibs has outperformed the market, indicating market share growth [34] Financial Performance - **Gross Merchandise Volume (GMV)**: Approaching $400 million, with a growth trajectory since the introduction of e-commerce in 2016 [17][18] - **Recent Growth**: GMV was up 2% last year and 9% in Q4, despite the overall luxury furniture market shrinking [34] - **Profitability Outlook**: The company is not yet breakeven but has a clear path to profitability due to high operating leverage [36][37] Strategic Initiatives - **Advertising Revenue Potential**: Plans to explore advertising opportunities beyond current sellers, leveraging the unique audience [35] - **Vertical Expansion**: Jewelry is expected to become the largest vertical, currently accounting for 20% of GMV [25][27] - **Cost Management**: Significant cuts in expenses and headcount over the past three years, with a focus on R&D for high returns [39] Risks and Challenges - **Market Sensitivity**: The business is sensitive to luxury real estate market trends, impacting consumer sentiment and discretionary spending [46][47] - **Consolidation Opportunities**: Current market valuations present potential for consolidation within the industry [41] Additional Insights - **Return and Fraud Rates**: Combined return and fraud rates are less than 5%, indicating a strong trust in the marketplace [44] - **Designer Relationships**: Interior designers are key repeat buyers, providing stability to the business [43] This summary encapsulates the essential insights from the conference, highlighting the company's position, market dynamics, financial performance, strategic initiatives, and potential risks.

Financial Performance - Gross Merchandise Value (GMV) for Q1 2025 was $94.74 million, a 3% increase from $91.69 million in Q1 2024[92] - Active Buyers increased to 64,799 in Q1 2025, up from 60,666 in Q1 2024, representing a growth of 5%[92] - Net revenue for Q1 2025 was $22.55 million, a 2% increase from $22.06 million in Q1 2024, driven by an increase in average order value[109] - Gross profit for Q1 2025 was $16.32 million, with a gross margin of 72.4%, slightly down from 72.5% in Q1 2024[112] - Loss from operations for Q1 2025 was $6.26 million, compared to a loss of $5.35 million in Q1 2024[107] - Adjusted EBITDA for Q1 2025 was $(1.75) million, an improvement from $(1.79) million in Q1 2024[92] - Adjusted EBITDA for the three months ended March 31, 2025, was a loss of $1.7 million, slightly improved from a loss of $1.8 million in the same period of 2024[123] Expenses and Costs - Total operating expenses for Q1 2025 were $22.58 million, compared to $21.34 million in Q1 2024, reflecting an increase of 5.8%[107] - Marketplace transaction fees accounted for 75% of net revenue in Q1 2025, up from 74% in Q1 2024[110] - Sales and marketing expenses were $9.12 million in Q1 2025, a slight decrease of 1% from $9.17 million in Q1 2024[113] - Technology development expenses increased to $5.6 million for the three months ended March 31, 2025, up 18% from $4.7 million in the same period of 2024, primarily due to higher salaries and stock-based compensation[114] - General and administrative expenses remained flat at $7.0 million for the three months ended March 31, 2025, a slight decrease of 1% from the previous year, driven by lower non-income taxes and professional services[115] - Provision for transaction losses increased to $0.90 million in Q1 2025, compared to $0.41 million in Q1 2024[107] - Provision for transaction losses rose to $0.9 million for the three months ended March 31, 2025, reflecting a significant increase of 117% compared to $0.4 million in the same period of 2024, attributed to changes in estimates and increased claims volume[116] Cash Flow and Investments - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $101.0 million, with an accumulated deficit of $337.2 million[124] - Net cash used in operating activities was $0.1 million for the three months ended March 31, 2025, a significant improvement compared to $3.1 million used in the same period of 2024[130] - The company repurchased 477,992 shares of common stock for a total cost of $1.8 million during the three months ended March 31, 2025, with approximately $2.0 million remaining for future purchases under the 2024 Stock Repurchase Program[128] - Net cash used in financing activities was $2.4 million for the three months ended March 31, 2025, primarily due to stock repurchases and tax payments related to stock-based compensation[135] - The principal use of cash, cash equivalents, and short-term investments is to fund operations and support strategic initiatives, including anticipated share repurchases under the 2024 Stock Repurchase Program[144] - The company does not engage in investments for trading or speculative purposes, focusing instead on operational funding[144] Market and Risk Factors - A hypothetical 100 basis point change in interest rates is expected to result in an approximate $0.7 million increase or decrease in cash, cash equivalents, and short-term investments[143] - An adverse 10% change in current exchange rates could lead to a maximum decrease of $0.8 million in net revenue for the three months ended March 31, 2025[145] - The company maintains provisions for potential credit losses, which have been within expectations to date[146] - The company is exposed to inflation risk, which could impact its ability to offset higher costs through net revenue and GMV increases[147] - Fluctuations in foreign exchange rates have not significantly impacted results to date, but material gains and losses may occur in the future[145] - The company evaluates customer solvency on an ongoing basis to determine the need for additional allowances for doubtful accounts[146] - No single customer accounted for more than 10% of net revenue for the three months ended March 31, 2025 and 2024, indicating a diverse customer base[146] - Other income, net decreased to $1.5 million for the three months ended March 31, 2025, down 29% from $2.0 million in the prior year, primarily due to lower interest income[118]

Financial Data and Key Metrics Changes - The first quarter GMV was $94.7 million, up 3% year over year, outperforming end markets that continue to contract [23] - Net revenue was $22.5 million, up 2%, with transaction revenue making up approximately 75% of total revenue [29] - Adjusted EBITDA loss was $1.7 million, compared to a loss of $1.8 million last year, with an adjusted EBITDA margin loss of 8%, flat year over year [32] Business Line Data and Key Metrics Changes - Consumer GMV grew mid-single digits, while trade GMV was flat; jewelry and fashion posted the strongest performance, both growing double digits [26] - On-platform average order value (AOV) was nearly $2,600, and median order value was approximately $12.50, both up 4% [24] - The number of listings grew to over 1.8 million, up 5%, while unique sellers decreased to approximately 5,900, down 23% year over year [20][28] Market Data and Key Metrics Changes - Organic traffic accounted for over 70% of total traffic, with improvements in SEO and direct traffic contributing to growth [12][25] - The company experienced a significant drop in conversion rates from March to April, primarily driven by changes in the macroeconomic environment [42] - The company gained market share for five consecutive quarters, as measured against syndicated credit card data for online furniture and luxury furniture markets [54] Company Strategy and Development Direction - The company aims to maintain growth and expense discipline while capturing additional market share through product-led growth strategies [4][11] - The 2025 roadmap focuses on accelerating organic traffic growth, competitive pricing, funnel optimization, and elevating service levels [11] - The company is committed to managing costs carefully and delivering on key initiatives that position it for long-term success [35] Management Comments on Operating Environment and Future Outlook - Management noted that evolving trade policies and macroeconomic effects have created a tougher demand backdrop for luxury home discretionary spending [5] - The company expects continued listings growth throughout 2025 and anticipates churn to normalize in the second quarter [28][34] - Management remains confident in the strategy and ability to deliver value through operational focus on initiatives under their control [35] Other Important Information - The company ended the quarter with a strong cash position of $101 million, down $2.9 million sequentially, which includes share repurchases [33] - The company has repurchased approximately 6.9 million shares for a total of $33.4 million since launching its first share buyback in August 2023 [33] Q&A Session Summary Question: Organic traffic and conversion gains - Management indicated that organic traffic had declined for over a year but was restored to growth in Q1, with conversion gains being stable despite a drop from March to April [40][42] Question: Churn normalization - Management confirmed that churn is expected to normalize in Q2 as they have passed the changes in the subscription pricing plan [44][45] Question: Active buyers growth - Management noted that the growth in active buyers is directly related to conversion rates, which are influenced by macroeconomic conditions [50] Question: Market share gains - Management explained that market share is measured by comparing GMV changes against syndicated credit card data, and they have seen consistent growth in market share [54] Question: ML pricing models - Management shared that ML pricing models have been rolled out across all categories, with high adoption rates for lower-priced items and ongoing improvements expected [56][58]

Financial Data and Key Metrics Changes - The first quarter GMV was $94.7 million, up 3% year over year, outperforming end markets that continue to contract [23] - Net revenue was $22.5 million, up 2%, with transaction revenue making up approximately 75% of total revenue [29] - Adjusted EBITDA loss was $1.7 million, compared to a loss of $1.8 million last year, with an adjusted EBITDA margin loss of 8%, flat year over year [32] Business Line Data and Key Metrics Changes - Consumer GMV grew mid-single digits, while trade GMV was flat; jewelry and fashion posted the strongest performance, both growing double digits [26] - On-platform average order value (AOV) was nearly $2,600, up 4%, while median order value was approximately $12.50, also up 4% [24] - Unique seller accounts decreased by 23% year over year to approximately 5,900, but listings grew 5% to over 1.8 million [20][28] Market Data and Key Metrics Changes - The company experienced a return to organic traffic growth in Q1, with over 70% of traffic coming from organic sources [12][25] - Conversion rates increased year over year for six consecutive quarters, with a 10% improvement in Q1 compared to Q1 2023 [19] - The company noted a significant drop in conversion from March to April, primarily driven by changes in the macroeconomic environment [41][50] Company Strategy and Development Direction - The company aims to maintain growth and expense discipline while capturing additional market share, focusing on product-led growth strategies [4][11] - The 2025 roadmap includes themes such as accelerating organic traffic growth, competitive pricing, funnel optimization, and elevating service levels [11] - The company is committed to managing costs carefully and delivering on key initiatives that position it for long-term success [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tougher demand backdrop for luxury home discretionary spending due to evolving trade policies and macroeconomic effects [5] - The company expects continued listings growth throughout 2025 and anticipates churn to normalize in Q2 [28][34] - The guidance for Q2 includes GMV of $85 million to $92 million, reflecting a decrease of 7% to an increase of 1% [33][34] Other Important Information - The company ended the quarter with a strong cash position of $101 million, down $2.9 million sequentially, which includes share repurchases [33] - The company has repurchased approximately 6.9 million shares for a total of $33.4 million since launching its first share buyback in August 2023 [33] Q&A Session Summary Question: Organic traffic and conversion gains - Management noted that organic traffic had declined for over a year but was restored to growth in Q1, with conversion gains being stable despite a drop from March to April [40][42] Question: Churn normalization - Management confirmed that churn is expected to normalize in Q2 as the company has passed the changes in the subscription pricing plan [44][45] Question: Active buyers growth - The increase in active buyers is directly related to conversion changes, with management emphasizing the need to remain vigilant regarding macroeconomic conditions [50] Question: Market share gains - Management indicated that market share has grown for five consecutive quarters, measured against syndicated credit card data for online furniture and luxury furniture markets [54] Question: ML pricing models - The rollout of ML pricing models has seen high adoption for items priced below $9,000, while adoption for higher-priced items remains lower due to fewer data points [56][58]

Financial Data and Key Metrics Changes - GMV for Q1 2025 was $94.7 million, up 3% year over year, exceeding guidance despite a challenging market backdrop [22][32] - Net revenue increased to $22.5 million, a 2% rise, with transaction revenue comprising approximately 75% of total revenue [27][32] - Adjusted EBITDA loss was $1.7 million, compared to a loss of $1.8 million in the previous year, maintaining an adjusted EBITDA margin loss of 8% [30][32] Business Line Data and Key Metrics Changes - Consumer GMV grew mid-single digits, while trade GMV remained flat; jewelry and fashion verticals posted double-digit growth [25][32] - Active buyers increased to approximately 64,800, reflecting a 7% year-over-year growth [25][32] - Unique seller accounts decreased by 23% year over year to about 5,900, attributed to subscription pricing optimizations [19][26] Market Data and Key Metrics Changes - The company experienced steady listings growth, ending the quarter with over 1.8 million listings, up 5% [26][32] - Organic traffic accounted for over 70% of total traffic, with improvements in SEO and direct traffic contributing to growth [12][24] - Conversion rates improved year over year for six consecutive quarters, although growth moderated in Q1 compared to Q4 [10][24] Company Strategy and Development Direction - The company is focused on a product-led growth strategy aimed at enhancing buyer and seller experiences while gaining market share [4][10] - Key initiatives include accelerating organic traffic growth, competitive pricing, funnel optimization, and elevating service levels [11][12] - The company aims to maintain growth and expense discipline while capturing additional market share throughout 2025 [20][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tougher demand backdrop for luxury home discretionary spending due to evolving trade policies and macroeconomic effects [5][8] - The company expects continued listings growth and normalization of seller churn in Q2 2025 [20][32] - Future guidance reflects a forecasted GMV of $85 million to $92 million for Q2, indicating a potential decline of 7% to an increase of 1% [31][32] Other Important Information - The company has repurchased approximately $33.4 million worth of shares since initiating its buyback program in August 2023 [31] - The adjusted EBITDA margin guidance for Q2 is projected to be a loss of 14% to 10%, reflecting increased headcount-related costs and transaction loss provisions [32] Q&A Session Summary Question: On organic traffic and conversion - Management noted that organic traffic had declined for over a year but returned to growth in Q1, attributing this to product and engineering efforts [36][38] - Conversion changes were primarily driven by macroeconomic factors, particularly in the consumer furniture segment [39][40] Question: On active buyers growth - Active buyer growth is linked to conversion rates, which are influenced by macroeconomic conditions; management remains focused on long-term value drivers [44][46] Question: On market share gains - Market share is measured against GMV changes versus syndicated credit card data, with growth observed for five consecutive quarters [50] - The rollout of machine learning pricing models has seen high adoption for lower-priced items, with ongoing improvements expected [52][54]

Financial Performance - Net revenue for Q1 2025 was $22.5 million, a 2% increase year-over-year[7] - GAAP net loss was $4.8 million, compared to a net loss of $3.3 million in Q1 2024[7] - Net loss for Q1 2025 was $4,806,000, compared to a net loss of $3,303,000 in Q1 2024, representing an increase in loss of approximately 45.5%[26] - Adjusted EBITDA was $(1.7) million with an Adjusted EBITDA margin of (7.8)%, an improvement from $(1.8) million and (8.1)% in Q1 2024[7] - Adjusted EBITDA for Q1 2025 was $(1,748,000), slightly improved from $(1,794,000) in Q1 2024, indicating a reduction in adjusted loss of about 2.6%[33] - Adjusted EBITDA Margin for Q1 2025 was (7.8)%, compared to (8.1)% in Q1 2024, showing a marginal improvement in operational efficiency[33] Growth Metrics - Gross Merchandise Value (GMV) reached $94.7 million, reflecting a 3% year-over-year growth[8] - Active Buyers increased to approximately 65,000, marking a 7% year-over-year rise[8] - The number of orders remained flat year-over-year at approximately 35,000[8] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $101.0 million as of March 31, 2025[7] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $23,974,000, down from $37,330,000 at the end of Q1 2024, reflecting a decrease of approximately 35.6%[26] - Cash flows from operating activities resulted in a net cash used of $96,000 in Q1 2025, a significant decrease from $3,061,000 in Q1 2024[26] - Net cash used in investing activities was $(3,265,000) in Q1 2025, compared to a net cash provided of $1,438,000 in Q1 2024, indicating a shift in investment strategy[26] - Maturities of short-term investments in Q1 2025 were $20,050,000, down from $31,577,000 in Q1 2024, indicating a decrease of about 36.6%[26] Guidance - The company provided Q2 2025 guidance with GMV expected between $85 million and $92 million[6] - Net revenue guidance for Q2 2025 is projected to be between $21.2 million and $22.5 million[6] Expenses and Provisions - Stock-based compensation expense increased to $4,050,000 in Q1 2025 from $3,090,000 in Q1 2024, representing a rise of approximately 31%[33] - The company reported a provision for transaction losses, returns, and refunds of $35,000 in Q1 2025, a significant decrease from $434,000 in Q1 2024, reflecting improved transaction management[26] - Payments for repurchase of common stock in Q1 2025 were $1,794,000, down from $2,669,000 in Q1 2024, indicating a reduction of approximately 32.7% in stock buyback activity[26] Margins - Gross margin for Q1 2025 was 72.4%, slightly down from 72.5% in Q1 2024[7]

Financial Performance - The company incurred net losses of $18.6 million, $22.7 million, and $22.5 million during the fiscal years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $332.4 million as of December 31, 2024[75]. - Net revenue for the fiscal years ended December 31, 2024, 2023, and 2022 was $88.3 million, $84.7 million, and $96.8 million, respectively, indicating fluctuations in revenue[76]. - The company anticipates needing additional capital for growth initiatives, including expanding its online marketplace and potentially acquiring complementary businesses[119]. - The company has incurred substantial net operating losses (NOLs) and may face limitations on using these NOLs if an ownership change occurs[218]. - The company is subject to income taxation at federal, state, and local levels, with potential variability in effective tax rates due to changes in tax laws and revenue mix[214]. Operational Challenges - The company expects operating expenses to increase significantly in the future, which may hinder profitability if revenue growth does not keep pace[78]. - Seasonal fluctuations impact the company's revenue, with higher net revenue generally recognized in the fourth quarter, making it critical to manage expenses effectively during this period[79]. - The company faces challenges in managing growth effectively, which could lead to increased operating expenses outpacing revenue growth[118]. - The company has experienced service interruptions and outages due to various factors, which could significantly harm its business and reputation if not managed effectively[131]. - The company relies on third-party delivery services, and any disruptions could harm reputation and financial performance[97]. Market and Competitive Landscape - The company’s growth depends on attracting and retaining active sellers and buyers, which is essential for maintaining a sufficient volume of listings on its online marketplace[80]. - The company competes with a broad range of vendors, and failure to compete effectively could harm market position and results of operations[100]. - Marketing efforts are crucial for growth, and ineffective advertising could hinder the ability to attract new sellers and buyers[111]. - The company intends to explore additional verticals for luxury design items, but failure to attract new sellers or buyers could result in revenue shortfalls[107]. - Economic downturns or uncertainty may lead to reduced consumer discretionary spending, negatively impacting sales of luxury design items[103]. Legal and Regulatory Risks - The company may face civil or criminal liability for activities carried out by sellers on its online marketplace, particularly outside the United States[91]. - The company faces potential liability for intellectual property infringement, which could lead to significant costs and impact revenue[93]. - The company is subject to regulatory risks in international markets, which could complicate operations and increase costs[128]. - The company must comply with stringent data protection laws like the GDPR and CCPA, which impose significant operational requirements and potential penalties for non-compliance[143]. - The company is subject to evolving laws and regulations that could require changes to business practices and incur significant management time and effort[167]. Technology and Security - The company is investing in technology to improve operational efficiencies, but reliance on third-party technology poses risks if those technologies do not perform as expected[117]. - The company has experienced cybersecurity incidents in the past, which could lead to loss of trust among sellers and buyers if repeated[156]. - The company may incur significant costs related to the detection and prevention of security breaches, which could disrupt operations and harm reputation[158]. - The company’s insurance coverage may be insufficient to mitigate various risks, including those related to cybersecurity and data breaches, potentially leading to increased liabilities[136]. - The company is heavily dependent on Amazon Web Services (AWS) for its computing and storage needs, and any significant disruption in AWS services could adversely affect operations and financial condition[135]. Financial Management - The company does not intend to pay dividends on its common stock, limiting returns to changes in stock value[229]. - The company maintains provisions for potential credit losses, which have been within expectations to date[342]. - The company is exposed to market risks including interest rate changes and foreign currency fluctuations[338]. - Inflationary pressures may impact the company's costs and financial condition, potentially harming business operations[343]. - A hypothetical 100 basis point change in interest rates is expected to result in an approximate $0.7 million increase or decrease in cash, cash equivalents, and short-term investments[339]. Human Resources - The company’s ability to attract and retain key personnel is critical for its success, and any loss of key executives could adversely impact business operations[139]. - The company may face challenges in recruiting and retaining specialized employees, which could hinder its growth and operational capabilities[140]. - The company is subject to risks associated with labor disputes, which could disrupt operations and increase costs if employees decide to unionize[141]. - The company may need to hire additional accounting and finance personnel to comply with Sarbanes-Oxley Act requirements, which could be challenging[208]. - The company anticipates significant ongoing expenses related to compliance with public company regulations, which may divert management's focus from revenue-generating activities[206].

Financial Data and Key Metrics Changes - The company achieved GMV of $94.5 million, up 9%, marking the fastest growth in three years [32] - Revenue increased by $3.6 million, representing a 9% year-over-year growth, the fastest growth rate in three years [39] - Adjusted EBITDA improved by $5.3 million, demonstrating operating leverage potential [13] Business Line Data and Key Metrics Changes - Active buyers increased to approximately 64,300, up 6% year-over-year, marking the first year-over-year growth since Q2 2022 [37] - Average order value rose to approximately $2,600, up 2%, while median order value increased to approximately $1,200, up 4% [34] - Unique sellers decreased to approximately 5,900, down 24%, due to elevated churn from the retirement of the essential seller program [20] Market Data and Key Metrics Changes - The broader online furniture and premium home furnishings markets contracted, with U.S. home sales nearing a 30-year low [9][10] - Despite market contraction, the company gained market share, with GMV growth rates accelerating approximately 14 percentage points sequentially [33] Company Strategy and Development Direction - The company aims to build a business serving hundreds of thousands of active buyers, generating billions in GMV and hundreds of millions in revenue [12] - The roadmap for 2025 focuses on creating value for both buyers and sellers, emphasizing organic traffic growth, competitive pricing, and optimizing the conversion funnel [23][24][26] - The company plans to maintain headcount flat while unlocking operating leverage at mid-single digit revenue growth [14][45] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the down cycle for luxury home furnishings is behind, but the pace and timing of recovery remain uncertain [22] - The company expects GMV to grow year-over-year in 2025, assuming no major changes in the macro environment [50] - Management remains focused on maintaining financial discipline while driving growth and capturing market share [51] Other Important Information - The company repurchased approximately 5.6 million shares for $28.1 million in 2024, indicating confidence in the business [29] - Operating expenses declined for the second consecutive year, demonstrating commitment to financial discipline [51] Q&A Session Summary Question: Marketing strategy amidst depressed home transactions - Management emphasized customer acquisition as the most important part of marketing, with successful efforts on Facebook and improvements in primary channels like Google [57][58] Question: Efforts related to Agentic AI - Management highlighted the focus on AI and ML, particularly in pricing optimization, with plans to roll out machine learning models across various categories [60][61] Question: Main levers to bring adjusted EBITDA closer to positive territory - Management stated that sustained revenue and GMV growth are key to achieving breakeven and positive adjusted EBITDA [68][69] Question: Update on churn normalization - Management expects churn to normalize in the first half of 2025, with listings growth remaining steady despite elevated churn due to program changes [75] Question: Clarification on mid-single digit revenue growth - Management indicated that while they do not provide full-year guidance, they are confident in the ability to grow GMV in 2025, with an expense base structured to deliver operating margin leverage [79]

Investor Presentation Q4 2024 1 Forward-Looking Statements and Non-GAAP Financial Information This presentation contains statements about 1stdibs.com, Inc.'s (the "Company") future financial results, plans, and efforts to expand our market share that are "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial risks and uncertainties. Any statements contained in this presentation ...

Financial Data and Key Metrics Changes - The company achieved GMV of $94.5 million, up 9%, marking the fastest growth in three years [32] - Net revenue increased to $22.8 million, up 9%, representing the third consecutive quarter of year-over-year growth [39] - Adjusted EBITDA loss was $1.6 million, an improvement from a loss of $1.7 million the previous year, with an adjusted EBITDA margin loss of 7% [44] Business Line Data and Key Metrics Changes - Active buyers increased to approximately 64,300, up 6% year-over-year, marking the first year-over-year growth since Q2 2022 [37] - Unique sellers decreased to approximately 5,900, down 24%, primarily due to elevated churn from the retirement of the essential seller program [20][38] - Listings grew to over 1.8 million, up 5% year-over-year, indicating steady supply growth despite seller churn [21][38] Market Data and Key Metrics Changes - The broader online furniture and premium home furnishings markets contracted, with U.S. home sales nearing a 30-year low [9][10] - The company noted that the downturn is cyclical rather than structural, anticipating a rebound in the luxury real estate and home goods market [10] Company Strategy and Development Direction - The company aims to build a business serving hundreds of thousands of active buyers, generating billions in GMV and hundreds of millions in revenue while maintaining strong profitability [12] - The roadmap for 2025 focuses on creating value for both buyers and sellers, enhancing organic traffic growth, competitive pricing, optimizing the conversion funnel, and elevating service levels [23][28] - The company plans to maintain flat headcount while achieving operating leverage at mid-single digit revenue growth [14][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue growth despite a challenging market environment, emphasizing the importance of sustaining revenue growth and maintaining operating leverage [11][13] - The outlook for 2025 anticipates GMV growth year-over-year, assuming no major changes in the macro environment [50] Other Important Information - The company repurchased approximately 5.6 million shares for $28.1 million in 2024, indicating confidence in the business's intrinsic value [29][30] - Operating expenses declined for the second consecutive year, demonstrating financial discipline [51] Q&A Session Summary Question: Marketing strategy in a depressed luxury home market - Management highlighted customer acquisition as the primary focus, with successful efforts on platforms like Facebook and improvements in Google [57][58] Question: Efforts related to Agentic AI - Management discussed the importance of AI and machine learning, particularly in pricing strategies, with ongoing projects aimed at optimizing pricing and shipping [60][62] Question: Main levers to bring adjusted EBITDA closer to positive - Management emphasized that sustained revenue growth is key to achieving breakeven in adjusted EBITDA, with a disciplined approach to expenses [68] Question: Update on seller churn normalization - Management noted that churn is expected to normalize in the first half of 2025, with a focus on listings growth rather than the number of sellers [75] Question: Clarification on mid-single digit revenue growth - Management clarified that while they do not provide full-year guidance, they believe in the ability to grow GMV in 2025, with an expense structure set to deliver operating margin leverage at mid-single digit revenue growth [79]