If we had to put 1stdibs.Com, Inc. (NASDAQ: DIBS ) in a box and categorize it, it would definitely be one of those that performed very poorly post-IPO.I’m an equity analyst and founder of Goulart’s Restaurant Stocks, a research firm focused on the U.S. restaurant industry — from quick-service and fast casual to fine dining and niche concepts. I lead all thematic research and valuation efforts, applying advanced financial modeling, sector-specific KPIs, and strategic insights to uncover hidden value across p ...

Group 1 - 1stdibs (NASDAQ: DIBS) has performed very poorly post-IPO, indicating challenges in its market performance [1] Group 2 - The research firm Goulart's Restaurant Stocks focuses on the U.S. restaurant industry, covering various segments from quick-service to fine dining [2] - The firm employs advanced financial modeling and sector-specific KPIs to uncover hidden value in public equities, particularly in micro and small caps [2] - The founder has a strong academic background with an MBA in Controllership and Accounting Forensics and experience in restaurant operations [2]

Summary of First Dibs Conference Call Company Overview - **Company Name**: First Dibs (DIBS) - **Industry**: Luxury online marketplace specializing in unique, one-of-a-kind design items - **Founded**: February 2001, originally focused on the Paris flea market for American interior designers [2][3] Core Business Model - **Marketplace Structure**: Operates as a two-sided marketplace with approximately 6,000 vetted professional sellers and 2,000,000 individual listings [6][4] - **Revenue Model**: - 75% of revenue from commissions on sales - 25% from advertising, subscription fees, and listing fees [7][8] - **Average Order Value (AOV)**: Over $2,500, significantly higher than competitors [15] Growth and Market Position - **Transaction Volume**: Over $3 billion in transactions since inception [4] - **Geographic Expansion**: 50% of sellers and 30% of traffic now from outside the U.S. [13] - **Category Expansion**: Originally focused on furniture, now includes jewelry (20% of GMV), art, and vintage fashion [13][19] Financial Performance - **Recent Financials**: - Q2 GMV: $90 million - Revenue: $22 million - Adjusted EBITDA loss: $1.8 million [28] - **Market Conditions**: Flat GMV and revenue over the last five quarters due to a depressed furniture market, which constitutes 60% of sales [29] Competitive Advantages - **Brand Recognition**: Strong brand associated with quality and luxury, attracting high-profile sellers and buyers [10][22] - **Network Effect**: Transitioned from a listings-only model to a transactional model, increasing seller take rates while retaining sellers [23] - **Asset-Light Model**: No owned inventory, minimizing operational costs [16][39] Future Opportunities - **AI and Machine Learning**: Implementing AI for pricing recommendations and enhancing customer service scalability [26][27] - **Advertising Potential**: Unique audience of luxury buyers presents opportunities for targeted advertising [28] - **Cost Structure Optimization**: Focus on managing costs to achieve profitability without relying solely on GMV growth [30][40] Market Challenges - **Market Shrinkage**: The luxury market is currently experiencing double-digit declines, particularly in furniture sales linked to real estate market conditions [29][55] - **Brand Awareness**: While well-known within luxury circles, the company aims to expand its reach to a broader audience through social media marketing [48][50] Additional Insights - **Seller Acquisition**: Sellers are primarily small companies or artisans, with a focus on unique, non-mass-produced items [42][44] - **Customer Trust**: High transaction values require a strong trust relationship between buyers and sellers, which the company has cultivated [15][16] - **Market Size**: The total addressable market for luxury furniture, jewelry, and art exceeds $100 billion, with significant opportunities for market share growth [21][22]

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Forward-looking statements in this report involve substantial risks and uncertainties, and actual results may differ materially from projections - Forward-looking statements include future financial performance, growth strategies, market demand, competition, ability to attract/retain sellers/buyers, brand development, compliance, litigation, economic trends, and capital availability[10](index=10&type=chunk) - Investors are cautioned not to place undue reliance on these statements, as new risks emerge, and management cannot predict all factors affecting future results[11](index=11&type=chunk)[13](index=13&type=chunk) [Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements for the periods ended June 30, 2025, along with management's discussion and analysis of financial condition and results of operations, market risk disclosures, and controls and procedures [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides the company's unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, accompanied by detailed notes explaining the basis of presentation and significant accounting policies [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $22,431 | $25,964 | | Short-term investments | $71,857 | $77,919 | | Total current assets | $105,802 | $111,864 | | Total assets | $138,571 | $145,758 | | **Liabilities** | | | | Total current liabilities | $27,314 | $28,459 | | Total liabilities | $43,706 | $46,453 | | **Stockholders' Equity** | | | | Total stockholders' equity | $94,865 | $99,305 | | Total liabilities and stockholders' equity | $138,571 | $145,758 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Outlines the company's revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | $22,135 | $22,235 | $44,680 | $44,297 | | Cost of revenue | $6,237 | $6,290 | $12,460 | $12,366 | | Gross profit | $15,898 | $15,945 | $32,220 | $31,931 | | Total operating expenses | $21,615 | $22,439 | $44,192 | $43,777 | | Loss from operations | $(5,717) | $(6,494) | $(11,972) | $(11,846) | | Total other income, net | $1,423 | $2,061 | $2,876 | $4,110 | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Net loss per share—basic and diluted | $(0.12) | $(0.12) | $(0.26) | $(0.20) | [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Details the company's comprehensive loss, including net loss and other comprehensive income/loss items, for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Foreign currency translation adjustment | $124 | $(7) | $192 | $(23) | | Unrealized losses on short-term investments | $(23) | $(71) | $(11) | $(263) | | Comprehensive loss | $(4,212) | $(4,515) | $(8,938) | $(8,026) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Summarizes changes in the company's stockholders' equity, including net loss, stock-based compensation, and share repurchases, for the six months ended June 30, 2025 - Total stockholders' equity decreased from **$99.3 million** as of December 31, 2024, to **$94.9 million** as of June 30, 2025[16](index=16&type=chunk)[22](index=22&type=chunk) - Key changes for the six months ended June 30, 2025, include a net loss of **$9.1 million**, stock-based compensation of **$7.6 million**, and common stock repurchases of **$1.8 million**[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,239) | $(5,705) | | Net cash provided by investing activities | $5,850 | $15,283 | | Net cash used in financing activities | $(3,127) | $(23,064) | | Net decrease in cash, cash equivalents, and restricted cash | $(2,178) | $(13,548) | | Cash, cash equivalents, and restricted cash at end of period | $27,443 | $27,427 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details and context for the unaudited condensed consolidated financial statements, covering the company's business, accounting policies, fair value measurements, revenue breakdown, investment portfolio, property and equipment, accrued expenses, lease obligations, equity structure, stock-based compensation, income tax position, net loss per share calculations, and various commitments and contingencies [1. Basis of Presentation and Summary of Significant Accounting Policies](index=12&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Describes the company's business operations, the basis of financial statement preparation, and key accounting policies, including restructuring charges - 1stdibs.com, Inc. operates as a leading online marketplace for luxury design items, connecting design lovers with sellers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion[26](index=26&type=chunk) - The financial statements are prepared in accordance with GAAP, and the company operates as a single reportable and operating segment[28](index=28&type=chunk)[36](index=36&type=chunk) | (in thousands) | Restructuring Charges | | :--------------- | :-------------------- | | Balance, December 31, 2024 | $1,262 | | Cash payments | $(944) | | Balance, June 30, 2025 | $318 | - No material changes to significant accounting policies were made, and no restructuring expense was recorded for the three and six months ended June 30, 2025[31](index=31&type=chunk)[33](index=33&type=chunk) [2. Fair Value of Financial Instruments](index=14&type=section&id=2.%20Fair%20Value%20of%20Financial%20Instruments) Explains the classification of financial assets and liabilities into a three-level fair value hierarchy based on input observability - The company classifies financial assets and liabilities carried at fair value into a three-level hierarchy based on the observability of inputs[41](index=41&type=chunk)[42](index=42&type=chunk) | Asset Type | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------------ | :------ | :------ | :------ | :------ | | Money market fund | $7,671 | $— | $— | $7,671 | | Commercial paper | $— | $3,321 | $— | $3,321 | | Corporate notes | $— | $19,644 | $— | $19,644 | | U.S. Treasury securities | $— | $28,256 | $— | $28,256 | | U.S. Government agency securities | $— | $20,636 | $— | $20,636 | | **Total** | **$7,671** | **$71,857** | **$—** | **$79,928** | [3. Revenue Recognition](index=15&type=section&id=3.%20Revenue%20Recognition) Details the company's revenue streams, primarily from seller marketplace services and other services, and geographic revenue concentration | Service Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Seller marketplace services | $21,881 | $21,962 | $44,167 | $43,800 | | Other services | $254 | $273 | $513 | $497 | | **Total net revenue** | **$22,135** | **$22,235** | **$44,680** | **$44,297** | - Approximately **82%** of on-platform marketplace transaction net revenue for the three and six months ended June 30, 2025, was derived from the United States[45](index=45&type=chunk) [4. Short-Term Investments](index=15&type=section&id=4.%20Short-Term%20Investments) Provides a breakdown of the company's short-term investment portfolio by type, amortized cost, and fair value, including maturity profiles | Investment Type | Amortized Cost (June 30, 2025, in thousands) | Fair Value (June 30, 2025, in thousands) | Amortized Cost (Dec 31, 2024, in thousands) | Fair Value (Dec 31, 2024, in thousands) | | :------------------------ | :------------------------------- | :--------------------------- | :----------------------------- | :--------------------------- | | Commercial paper | $3,324 | $3,321 | $2,258 | $2,263 | | Corporate notes | $19,629 | $19,644 | $27,082 | $27,092 | | U.S. Treasury securities | $28,241 | $28,256 | $14,851 | $14,852 | | U.S. Government agency securities | $20,634 | $20,636 | $33,687 | $33,712 | | **Total** | **$71,828** | **$71,857** | **$77,878** | **$77,919** | - As of June 30, 2025, **$48.1 million** of short-term investments have a remaining maturity of one year or less, and **$23.8 million** have a maturity greater than one year[48](index=48&type=chunk) [5. Property and Equipment, net](index=16&type=section&id=5.%20Property%20and%20Equipment,%20net) Details the composition of property and equipment, net, including internal-use software and leasehold improvements, and associated depreciation and amortization expenses | Asset Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | Internal-use software | $20,705 | $20,026 | | Leasehold improvements | $4,029 | $4,029 | | Computer equipment and software | $689 | $621 | | Software in progress | $630 | $913 | | Furniture and fixtures | $73 | $73 | | **Total property and equipment, gross** | **$26,126** | **$25,662** | | Less: Accumulated depreciation and amortization | $(22,953) | $(22,098) | | **Total property and equipment, net** | **$3,173** | **$3,564** | - Depreciation and amortization expense for property and equipment totaled **$0.9 million** for the six months ended June 30, 2025, consistent with **$0.9 million** for the same period in 2024[49](index=49&type=chunk) [6. Accrued Expenses](index=16&type=section&id=6.%20Accrued%20Expenses) Lists the company's accrued expenses, including shipping, compensation, and taxes, as of June 30, 2025, and December 31, 2024 | Expense Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------ | :------------ | :---------------- | | Shipping | $2,263 | $2,536 | | Compensation & benefits | $1,755 | $2,611 | | Sales & use taxes payable | $1,100 | $1,490 | | Allowance for transaction losses | $970 | $961 | | Accrued severance | $317 | $1,262 | | Other | $2,471 | $2,615 | | **Total accrued expenses** | **$8,876** | **$11,475** | [7. Leases](index=16&type=section&id=7.%20Leases) Outlines the company's operating lease assets and liabilities, weighted-average lease terms, discount rates, and net lease expenses - As of June 30, 2025, the company had **$18.6 million** in operating lease right-of-use assets and **$20.8 million** in total operating lease liabilities (current and non-current)[53](index=53&type=chunk) - The weighted-average remaining lease term is **4.4 years** with a weighted-average discount rate of **6.2%**[53](index=53&type=chunk) | Expense Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease expense | $1,244 | $1,224 | $2,470 | $2,305 | | Sublease income | $(886) | $(1,054) | $(1,775) | $(1,753) | | **Total lease expense, net** | **$681** | **$510** | **$1,374** | **$1,172** | [8. Other Current Liabilities](index=17&type=section&id=8.%20Other%20Current%20Liabilities) Presents a breakdown of other current liabilities, including sales and indirect tax contingencies, as of June 30, 2025, and December 31, 2024 | Liability Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | Sales and other indirect tax contingencies | $1,112 | $1,100 | | Other | $753 | $865 | | **Total other current liabilities** | **$1,865** | **$1,965** | [9. Equity](index=18&type=section&id=9.%20Equity) Details the company's common stock outstanding, treasury stock, and remaining availability under its stock repurchase program - As of June 30, 2025, the company had **36,246,609 shares** of common stock outstanding and **6,921,514 shares** of treasury stock at a cost basis of **$33.4 million**[6](index=6&type=chunk)[16](index=16&type=chunk)[62](index=62&type=chunk) - Approximately **$2.0 million** remains available for future purchases under the 2024 Stock Repurchase Program[62](index=62&type=chunk) | Program | Shares (June 30, 2025) | Cost Basis (June 30, 2025, in thousands) | Shares (Dec 31, 2024) | Cost Basis (Dec 31, 2024, in thousands) | | :------------------------ | :----------------------- | :----------------------- | :---------------------- | :---------------------- | | 2023 Stock Repurchase Program | 4,926,635 | $25,373 | 4,926,635 | $25,373 | | 2024 Stock Repurchase Program | 1,994,879 | $8,039 | 1,516,887 | $6,245 | | **Total** | **6,921,514** | **$33,412** | **6,443,522** | **$31,618** | [10. Stock-based compensation](index=18&type=section&id=10.%20Stock-based%20compensation) Outlines the company's stock incentive plan, shares available for grants, and the allocation of stock-based compensation expense across various categories - The 2021 Stock Incentive Plan (2021 Plan) automatically increased by **1,791,393 shares** on January 1, 2025, with **2,224,900 shares** available for future grants as of June 30, 2025[68](index=68&type=chunk)[69](index=69&type=chunk) | Expense Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Cost of revenue | $97 | $87 | $188 | $167 | | Sales and marketing | $754 | $980 | $1,524 | $1,711 | | Technology development | $945 | $1,037 | $1,973 | $1,774 | | General and administrative | $1,746 | $1,912 | $3,907 | $3,454 | | **Total** | **$3,542** | **$4,016** | **$7,592** | **$7,106** | - Total unrecognized compensation expense related to unvested stock-based awards was **$20.6 million** as of June 30, 2025, expected to be recognized over a weighted-average period of **2.2 years**[77](index=77&type=chunk) [11. Income Taxes](index=21&type=section&id=11.%20Income%20Taxes) Discusses the company's income tax provision, the impact of net losses and valuation allowances, and the evaluation of new tax legislation - The income tax provision was immaterial for the three and six months ended June 30, 2025 and 2024, due to net losses and a full valuation allowance against net deferred tax assets[78](index=78&type=chunk) - The company is evaluating the impact of the recently signed One Big Beautiful Bill Act (OBBBA) but does not expect a material financial impact[79](index=79&type=chunk) [12. Net Loss Per Share](index=22&type=section&id=12.%20Net%20Loss%20Per%20Share) Presents the calculation of basic and diluted net loss per share, including net loss and weighted-average common shares outstanding | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Weighted average common shares outstanding | 35,820,053 | 38,517,785 | 35,697,350 | 39,131,456 | | **Net loss per share—basic and diluted** | **$(0.12)** | **$(0.12)** | **$(0.26)** | **$(0.20)** | - Potentially dilutive securities (stock options and restricted stock units) were excluded from diluted EPS calculation as their inclusion would have been anti-dilutive[81](index=81&type=chunk) [13. Commitments and Contingencies](index=22&type=section&id=13.%20Commitments%20and%20Contingencies) Details the company's contractual obligations, including lease and other obligations, and discusses the nature of legal proceedings and tax contingencies | Fiscal Year Ending December 31, | Lease Obligations (in thousands) | Other Obligations (in thousands) | Total Obligations (in thousands) | | :----------------------------------- | :---------------- | :---------------- | :---------------- | | 2025 (remaining) | $2,806 | $601 | $3,407 | | 2026 | $5,429 | $1,057 | $6,486 | | 2027 | $5,429 | $287 | $5,716 | | 2028 | $5,429 | $20 | $5,449 | | 2029 | $4,458 | $— | $4,458 | | 2030 | $41 | $— | $41 | | **Total** | **$23,592** | **$1,965** | **$25,557** | - The company is involved in routine legal proceedings but does not expect any current matters to have a material adverse effect on its business, financial condition, or results of operations[83](index=83&type=chunk) - Liabilities for sales and indirect tax contingencies totaled **$1.1 million** as of June 30, 2025, and December 31, 2024[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, key operating metrics, and factors influencing results, including a detailed comparison of financial results for the three and six months ended June 30, 2025 and 2024. It also covers non-GAAP measures, liquidity, cash flows, and critical accounting policies [Company Overview](index=24&type=section&id=Company%20Overview) Provides an overview of 1stDibs as a leading online marketplace for luxury design items, emphasizing its platform, vetting, and market expansion - 1stDibs is a leading online marketplace connecting design lovers with sellers of luxury design items, including vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion[89](index=89&type=chunk) - The company's platform, expert vetting, and marketing content build trust, facilitating high-consideration purchases and expanding the market for luxury design[89](index=89&type=chunk) - The company transitioned to a full e-commerce marketplace model in 2016, building on its reputation as a trusted source for unique luxury design[90](index=90&type=chunk) [Key Operating and Financial Metrics](index=24&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Presents key performance indicators such as GMV, number of orders, active buyers, and Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GMV | $89,891 | $91,514 | $184,631 | $183,200 | | Number of Orders | 32,819 | 33,952 | 68,081 | 69,267 | | Active Buyers | 64,363 | 61,155 | 64,363 | 61,155 | | Adjusted EBITDA | $(1,752) | $(1,589) | $(3,500) | $(3,383) | - GMV decreased by **1.8%** for the three months ended June 30, 2025, compared to the prior year, but increased by **0.8%** for the six months ended June 30, 2025[92](index=92&type=chunk) - Active Buyers increased by **5.2%** to **64,363** as of June 30, 2025, compared to **61,155** as of June 30, 2024[92](index=92&type=chunk) [Components of Results of Operations](index=25&type=section&id=Components%20of%20Results%20of%20Operations) Explains the composition of net revenue, cost of revenue, and operating expenses, including sales and marketing, technology development, general and administrative, and provision for transaction losses - Net revenue primarily consists of seller marketplace services (transaction, subscription, and listing fees), with transaction fees ranging from **5% to 50%** of GMV plus processing fees[98](index=98&type=chunk) - Cost of revenue includes payment processor fees, hosting, payroll, and amortization of internal-use software, and also accounts for the difference between shipping collected and charged[99](index=99&type=chunk)[100](index=100&type=chunk) - Operating expenses are categorized into Sales and Marketing (including performance-based marketing and promotional discounts), Technology Development (engineering and product development), General and Administrative (finance, legal, HR, lease expense), and Provision for Transaction Losses (buyer protection, bad debt)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including net revenue, gross profit, operating loss, and net loss, for the three and six months ended June 30, 2025, and 2024 | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | $22,135 | $22,235 | $44,680 | $44,297 | | Gross profit | $15,898 | $15,945 | $32,220 | $31,931 | | Loss from operations | $(5,717) | $(6,494) | $(11,972) | $(11,846) | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Metric | 3 Months Ended June 30, 2025 (%) | 3 Months Ended June 30, 2024 (%) | 6 Months Ended June 30, 2025 (%) | 6 Months Ended June 30, 2024 (%) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | 100% | 100% | 100% | 100% | | Cost of revenue | 28% | 28% | 28% | 28% | | Gross profit | 72% | 72% | 72% | 72% | | Sales and marketing | 37% | 42% | 39% | 42% | | Technology development | 27% | 24% | 26% | 23% | | General and administrative | 30% | 31% | 30% | 31% | | Provision for transaction losses | 4% | 4% | 4% | 3% | | Total operating expenses | 98% | 101% | 99% | 99% | | Loss from operations | (26)% | (29)% | (27)% | (27)% | | Other income, net | 6% | 9% | 7% | 10% | | Net loss before income taxes | (20)% | (20)% | (20)% | (17)% | | Provision for income taxes | —% | —% | —% | —% | | Net loss | (20)% | (20)% | (20)% | (17)% | [Comparison of the Three Months Ended June 30, 2025 and 2024](index=27&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Compares the company's financial performance for the three months ended June 30, 2025, against the same period in 2024, highlighting changes in revenue and expenses - Net revenue remained consistent at **$22.1 million**, a slight decrease of **$0.1 million (0.4%)** YoY, primarily due to a decrease in GMV and number of orders, influenced by macroeconomic factors[107](index=107&type=chunk)[108](index=108&type=chunk) - Sales and marketing expense decreased by **$1.1 million (12%)** to **$8.1 million**, driven by reduced performance-based marketing, promotional campaigns, and headcount[112](index=112&type=chunk) - Technology development expense increased by **$0.4 million (8%)** to **$5.9 million**, mainly due to annual compensation increases[113](index=113&type=chunk) - Other income, net, decreased by **$0.6 million (31%)** to **$1.4 million**, primarily due to lower interest income from reduced cash and short-term investments and lower interest rates[116](index=116&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=29&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Compares the company's financial performance for the six months ended June 30, 2025, against the same period in 2024, focusing on revenue, cost of revenue, and operating expenses - Net revenue increased by **$0.4 million (1%)** to **$44.7 million**, primarily driven by a **1%** increase in GMV[117](index=117&type=chunk) - Cost of revenue increased slightly by less than **$0.1 million (1%)** to **$12.5 million**, with increases in shipping and salaries offset by a **$0.4 million** decrease in credit card processing fees due to negotiated pricing[119](index=119&type=chunk) - Technology development expense increased by **$1.3 million (13%)** to **$11.5 million**, mainly due to a **$1.1 million** increase in salaries and benefits and a **$0.2 million** increase in stock-based compensation[123](index=123&type=chunk) - Provision for transaction losses increased by **$0.6 million (51%)** to **$1.9 million**, driven by a prior-year provision adjustment and timing/volume of claims[125](index=125&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Defines Adjusted EBITDA as a key non-GAAP metric used by management to evaluate operating performance, providing a reconciliation to net loss - Adjusted EBITDA is a key non-GAAP measure used by management to assess operating performance and leverage, excluding depreciation, stock-based compensation, other income, income taxes, and strategic alternative expenses[127](index=127&type=chunk)[130](index=130&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Depreciation and amortization | $423 | $470 | $880 | $932 | | Stock-based compensation expense | $3,542 | $4,016 | $7,592 | $7,106 | | Other income, net | $(1,423) | $(2,061) | $(2,876) | $(4,110) | | Provision for income taxes | $19 | $4 | $23 | $4 | | Strategic alternative expenses | $— | $419 | $— | $425 | | **Adjusted EBITDA** | **$(1,752)** | **$(1,589)** | **$(3,500)** | **$(3,383)** | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's financial liquidity, including cash, cash equivalents, and short-term investments, and discusses future capital requirements and share repurchase activities - As of June 30, 2025, the company had **$94.3 million** in cash, cash equivalents, and short-term investments, with an accumulated deficit of **$341.5 million**[131](index=131&type=chunk)[152](index=152&type=chunk) - Net cash used in operating activities was **$5.2 million** for the six months ended June 30, 2025, and the company expects continued operating losses and negative cash flows in the foreseeable future due to strategic growth investments[131](index=131&type=chunk) - The company believes existing capital is sufficient for at least the next 12 months but may need additional funds for longer-term objectives, with future capital requirements dependent on market developments, expenditures, and potential acquisitions[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - During the six months ended June 30, 2025, **477,992 shares** were repurchased for **$1.8 million** under the 2024 Stock Repurchase Program, with approximately **$2.0 million** remaining available[137](index=137&type=chunk) [Cash Flows](index=32&type=section&id=Cash%20Flows) Analyzes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,239) | $(5,705) | | Net cash provided by investing activities | $5,850 | $15,283 | | Net cash used in financing activities | $(3,127) | $(23,064) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(2,178)** | **$(13,548)** | - Operating cash outflow for H1 2025 was primarily due to changes in operating assets and liabilities, including decreases in operating lease liabilities, accounts payable, and accrued expenses, and an increase in prepaid expenses[139](index=139&type=chunk) - Investing cash inflow for H1 2025 was driven by **$38.8 million** from maturities and sales of short-term investments, partially offset by **$32.5 million** in purchases[141](index=141&type=chunk) - Financing cash outflow for H1 2025 was mainly due to **$1.8 million** in common stock repurchases and **$1.3 million** in tax payments for stock-based compensation[143](index=143&type=chunk) [Interim Goodwill Impairment Assessment](index=33&type=section&id=Interim%20Goodwill%20Impairment%20Assessment) Reports on the interim goodwill impairment assessment conducted in Q2 2025, noting no impairment but identifying a future risk due to fair value proximity to carrying value - A quantitative assessment of goodwill was performed during Q2 2025 due to declining stock price and macroeconomic factors[145](index=145&type=chunk) - No impairment was recorded, but the fair value of the reporting unit exceeded its carrying value by less than **10%**, indicating a future risk of impairment[145](index=145&type=chunk) [Contractual Obligations](index=33&type=section&id=Contractual%20Obligations) States that no material changes in contractual obligations were reported compared to the previous annual filing - No material changes in contractual obligations were reported as of June 30, 2025, compared to the Form 10-K[146](index=146&type=chunk) [Recent Accounting Pronouncements](index=33&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 1 for details on recently issued accounting pronouncements, specifically ASU 2023-09, and its expected impact - Refers to Note 1 for a description of recently issued accounting pronouncements, specifically ASU 2023-09 on Income Tax Disclosures, adopted in 2025, which will require additional disclosures but no financial impact[38](index=38&type=chunk)[147](index=147&type=chunk) [Emerging Growth Company](index=33&type=section&id=Emerging%20Growth%20Company) Identifies the company as an emerging growth company (EGC) and its election to use the extended transition period for new accounting standards - The company is an emerging growth company (EGC) and has elected to use the extended transition period for complying with new or revised accounting standards[148](index=148&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms no significant changes to critical accounting policies and estimates compared to the previous annual filing - No significant changes to critical accounting policies and estimates were reported compared to the Form 10-K[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to various market risks, including interest rate sensitivity, foreign currency fluctuations, credit risk, and inflation, and outlines how these risks are managed or mitigated - A hypothetical **100 basis point** increase or decrease in interest rates would result in an approximate **$0.6 million** change in cash, cash equivalents, and short-term investments[153](index=153&type=chunk) - An adverse **10%** change in current foreign exchange rates could result in up to a **$1.6 million** decrease in net revenue for the six months ended June 30, 2025[155](index=155&type=chunk) - Credit risk on accounts receivable is mitigated by upfront payment requirements and a diverse seller base, with provisions for potential credit losses maintained[156](index=156&type=chunk) - Macroeconomic factors, including housing and capital market volatility, and geopolitical developments, continue to negatively impact certain metrics, and inflation could harm the business if costs cannot be offset by revenue increases[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, at a reasonable assurance level, and reported no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[158](index=158&type=chunk) - No material changes in internal control over financial reporting were identified during the three months ended June 30, 2025[160](index=160&type=chunk) - Management acknowledges the inherent limitations of any control system, which cannot provide absolute assurance against errors or fraud[159](index=159&type=chunk)[162](index=162&type=chunk) [Part II - Other Information](index=36&type=section&id=Part%20II%20-%20Other%20Information) This section contains disclosures on legal proceedings, risk factors, unregistered sales of equity securities, other information, and an exhibit index [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) States that the company is involved in ordinary course legal proceedings but does not expect a material adverse effect - The company is involved in routine legal proceedings but does not expect any current matters to have a material adverse effect on its business, financial condition, or results of operations[164](index=164&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Refers to the detailed discussion of risks in the 2024 Annual Report on Form 10-K, noting no material changes - No material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K were reported[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) States there were no unregistered sales of equity securities or use of proceeds - There were no unregistered sales of equity securities or use of proceeds during the period[167](index=167&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) Discloses that no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[168](index=168&type=chunk) [Item 6. Exhibits Index](index=37&type=section&id=Item%206.%20Exhibits%20Index) Provides a list of exhibits filed with the Form 10-Q - The section lists all exhibits filed with the Form 10-Q, including certifications, articles of incorporation, bylaws, and XBRL documents[172](index=172&type=chunk) [Signatures](index=38&type=section&id=Signatures) Official signatures for the Form 10-Q filing - The report was duly signed on behalf of 1stdibs.com, Inc. by Thomas Etergino, Chief Financial Officer, on August 7, 2025[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - The second quarter demonstrated resilience with GMV and revenue performing above the midpoint of guidance, while adjusted EBITDA exceeded the high end [5][19] - Operating expenses declined by 4% year over year, reflecting a commitment to cost management [5][28] - Net revenue was $22.1 million, flat year over year, with transaction revenue making up approximately 75% of total revenue [25][26] - Adjusted EBITDA loss was $1.8 million compared to a loss of $1.6 million last year, with an adjusted EBITDA margin loss of 8% [28][30] Business Line Data and Key Metrics Changes - GMV modestly declined, but market share was gained in the luxury home goods market [6][36] - Average order value was nearly $2,600, flat year over year, while median order values increased by 10% to approximately $13.50 [22] - Jewelry accounted for about 20% of total GMV, increasing in high single digits, while other verticals were flat or down [24] Market Data and Key Metrics Changes - Active buyers totaled approximately 64,400, up 5% [24] - The company ended the quarter with nearly 1.9 million listings, up 3%, but unique sellers decreased by 21% year over year [16][17] - The U.S. housing market has shown the slowest spring selling season in thirteen years, impacting the luxury home goods market [36] Company Strategy and Development Direction - The 2025 roadmap focuses on accelerating organic traffic growth, ensuring competitive pricing, and optimizing the multi-step conversion funnel [7][10] - The company is embedding AI throughout its platform to enhance efficiencies and capabilities [15] - A significant addition to the leadership team was made with the hiring of Bradford Shellhammer as chief marketing officer and chief product officer [19] Management's Comments on Operating Environment and Future Outlook - The macro environment for luxury home goods remains challenging, with no major changes observed since the beginning of the year [35][36] - Despite a soft market, the company believes it can continue to gain market share based on its product roadmap [37] - The guidance for the third quarter reflects a modest rebound in average order value growth and continued conversion growth [30] Other Important Information - The company has implemented machine learning-based pricing models across all verticals to enhance pricing transparency [10][11] - Seller churn has remained elevated due to subscription pricing optimizations, but the impact on GMV and overall listings has been minimal [18][25] Q&A Session Summary Question: Changes in the overall environment since the beginning of the year - Management noted that there have not been major changes in the macro environment, with both the U.S. housing market and luxury home goods market remaining soft [35][36] Question: Vulnerability of organic traffic to AI-driven search results - Management acknowledged the potential impact of AI and chatbots on traffic but stated that there has not been a material impact on organic search traffic to date [39][40]

Investor Presentation Q2 2025 This presentation should not be relied upon for the purpose of evaluating the performance of the Company or for any other purpose, and neither the Company nor any of its affiliates, directors, officers, partners, employees, agents or advisers nor any other person, shall be liable for any direct, indirect or consequential liability, loss or damages suffered by any person as a result of this presentation or their reliance on any statement, estimate, target, projection or forward- ...

Exhibit 99.1 1stDibs Reports Second Quarter 2025 Financial Results New York, NY — August 6, 2025 — 1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for luxury design products ("1stDibs" or the "Company"), today reported financial results for its second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights "Our second quarter highlights steady progress on our strategic objectives and prudent expense management," said David Rosenblatt, 1stDibs Chief Executive Officer. "We are rel ...

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]