[Executive Summary](index=1&type=section&id=Executive%20Summary) 1stDibs reported generally flat net revenue and gross profit year-over-year for Q2 2025, with a slight improvement in GAAP net loss, while non-GAAP Adjusted EBITDA saw a marginal increase in loss and margin, and key operating metrics showed mixed results [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company's Q2 2025 financial performance showed generally flat net revenue and gross profit, an improved GAAP net loss, and a slight increase in non-GAAP Adjusted EBITDA loss, alongside mixed operating metrics Second Quarter 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net revenue | $22.1 million | $22.2 million | Flat | | Gross profit | $15.9 million | $15.9 million | Flat | | Gross margin | 71.8% | 71.7% | +0.1 pp | | GAAP net loss | $(4.3) million | $(4.4) million | Improved | | Non-GAAP Adjusted EBITDA | $(1.8) million | $(1.6) million | Increased Loss | | Adjusted EBITDA Margin | (7.9)% | (7.1)% | -0.8 pp | | Cash, cash equivalents and short-term investments | $94.3 million | N/A | N/A | Second Quarter 2025 Key Operating Metrics | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Gross Merchandise Value (GMV) | $89.9 million | -2% | | Number of Orders | ~33K | -3% | | Active Buyers | ~64K | +5% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted steady progress on strategic objectives, prudent expense management, and a focus on product innovation and operational efficiency, which contributed to conversion gains and a 4% year-over-year decrease in total operating expenses - CEO David Rosenblatt noted "steady progress on our strategic objectives and prudent expense management," emphasizing a focus on product innovation and operational efficiency to drive consistent conversion gains[4](index=4&type=chunk) - CFO Tom Etergino stated that Q2 performance met or exceeded all guidance metrics, attributing this to sustained conversion improvements and rigorous expense discipline, leading to a **4% year-over-year decrease in total operating expenses**[4](index=4&type=chunk) [Financial Guidance and Outlook (Q3 2025)](index=1&type=section&id=Financial%20Guidance%20and%20Outlook) 1stDibs provided financial guidance for the third quarter of 2025, projecting GMV between $83 million and $89 million, net revenue between $21.0 million and $22.1 million, and an Adjusted EBITDA margin between (12%) and (8%) Third Quarter 2025 Guidance | Metric | Range | | :--- | :--- | | GMV | $83 million - $89 million | | Net revenue | $21.0 million - $22.1 million | | Adjusted EBITDA margin (non-GAAP) | (12%) - (8%) | [Company Overview](index=2&type=section&id=Company%20Overview) This section provides an overview of 1stDibs' business model as a luxury online marketplace and defines its key operational metrics [About 1stDibs](index=2&type=section&id=About%201stDibs) 1stDibs operates as a premier online marketplace, connecting design enthusiasts with a curated selection of luxury vintage, antique, and contemporary items across various categories - 1stDibs is a leading online marketplace that connects design lovers with sellers and makers of vintage, antique, and contemporary furniture, home décor, art, jewelry, watches, and fashion[13](index=13&type=chunk) [Key Operating Metrics Definitions](index=4&type=section&id=Key%20Operating%20Metrics%20Definitions) This section defines the key operational metrics used by 1stDibs to measure its marketplace activity and performance, including Gross Merchandise Value (GMV), Number of Orders, and Active Buyers - **Gross Merchandise Value (GMV)** is defined as the total dollar value from items sold by sellers through 1stDibs in a given month, minus cancellations, and excluding shipping and U.S. sales taxes, including both marketplace and reported offline sales[18](index=18&type=chunk) - **Number of Orders** represents the total number of orders placed or reported through the 1stDibs marketplace in a given month, minus cancellations[19](index=19&type=chunk) - **Active Buyers** are defined as buyers who have made at least one purchase through the online marketplace during the 12 months ended on the last day of the period, net of cancellations, identified by a unique email address[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, and statements of cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, 1stDibs reported a decrease in total assets and total stockholders' equity compared to December 31, 2024, primarily driven by reductions in current assets like cash, cash equivalents, and short-term investments Condensed Consolidated Balance Sheets (Amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $22,431 | $25,964 | $(3,533) | | Short-term investments | $71,857 | $77,919 | $(6,062) | | Total current assets | $105,802 | $111,864 | $(6,062) | | Total assets | $138,571 | $145,758 | $(7,187) | | Total current liabilities | $27,314 | $28,459 | $(1,145) | | Total liabilities | $43,706 | $46,453 | $(2,747) | | Total stockholders' equity | $94,865 | $99,305 | $(4,440) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, net revenue and gross profit remained generally flat year-over-year, while total operating expenses decreased, leading to an improved loss from operations and net loss; for the six-month period, net loss increased despite slight revenue growth Three Months Ended June 30 (Amounts in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net revenue | $22,135 | $22,235 | -0.45% | | Gross profit | $15,898 | $15,945 | -0.30% | | Total operating expenses | $21,615 | $22,439 | -3.67% | | Loss from operations | $(5,717) | $(6,494) | 11.97% (improvement) | | Net loss | $(4,313) | $(4,437) | 2.80% (improvement) | | Net loss per share—basic and diluted | $(0.12) | $(0.12) | 0% | Six Months Ended June 30 (Amounts in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net revenue | $44,680 | $44,297 | 0.86% | | Gross profit | $32,220 | $31,931 | 0.90% | | Total operating expenses | $44,192 | $43,777 | 0.95% | | Loss from operations | $(11,972) | $(11,846) | -1.06% | | Net loss | $(9,119) | $(7,740) | -17.82% | | Net loss per share—basic and diluted | $(0.26) | $(0.20) | -30.00% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash used in operating activities improved, and net cash used in financing activities significantly decreased due to lower stock repurchases; however, net cash provided by investing activities saw a substantial decline Six Months Ended June 30 (Amounts in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(5,239) | $(5,705) | $466 (improvement) | | Net cash provided by investing activities | $5,850 | $15,283 | $(9,433) | | Net cash used in financing activities | $(3,127) | $(23,064) | $19,937 (improvement) | | Net decrease in cash, cash equivalents, and restricted cash | $(2,178) | $(13,548) | $11,370 (improvement) | | Cash, cash equivalents, and restricted cash at end of period | $27,443 | $27,427 | $16 | - Payments for repurchase of common stock decreased significantly from **$21,877 thousand in 2024 to $1,794 thousand in 2025**[27](index=27&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section details the company's non-GAAP financial measures, specifically Adjusted EBITDA and Adjusted EBITDA Margin, including their definitions, rationale, and reconciliation to GAAP net loss [Adjusted EBITDA and Adjusted EBITDA Margin](index=9&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) This section defines Adjusted EBITDA and Adjusted EBITDA Margin as key non-GAAP financial measures used by management to assess operating performance and leverage, providing a reconciliation to GAAP net loss and outlining the limitations of these non-GAAP metrics [Definition and Rationale](index=9&type=section&id=Definition%20and%20Rationale) This subsection defines Adjusted EBITDA and Adjusted EBITDA Margin, explains their use by management for performance assessment, and highlights their inherent limitations - **Adjusted EBITDA** is a non-GAAP measure representing net loss adjusted to exclude depreciation and amortization, stock-based compensation expense, other income (net), and strategic alternative expenses[28](index=28&type=chunk) - **Adjusted EBITDA Margin** is the Adjusted EBITDA divided by net revenue[28](index=28&type=chunk) - Management uses these measures to assess operating performance, analyze financial results, establish budgets, and make strategic decisions, believing they help identify underlying business trends masked by certain GAAP expenses[29](index=29&type=chunk) - Limitations include the exclusion of recurring non-cash charges (depreciation, amortization, stock-based compensation) and other income/expenses, which may not reflect actual cash requirements or significant recurring costs[30](index=30&type=chunk) [Reconciliation of Net Loss to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) This subsection provides a detailed reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA for both the three and six months ended June 30 Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended June 30, Amounts in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net loss | $(4,313) | $(4,437) | | Depreciation and amortization | $423 | $470 | | Stock-based compensation expense | $3,542 | $4,016 | | Other income, net | $(1,423) | $(2,061) | | Provision for income taxes | $19 | $4 | | Strategic alternative expenses | $0 | $419 | | **Adjusted EBITDA (non-GAAP)** | **$(1,752)** | **$(1,589)** | | **Adjusted EBITDA Margin (non-GAAP)** | **(7.9)%** | **(7.1)%** | Reconciliation of Net Loss to Adjusted EBITDA (Six Months Ended June 30, Amounts in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net loss | $(9,119) | $(7,740) | | Depreciation and amortization | $880 | $932 | | Stock-based compensation expense | $7,592 | $7,106 | | Other income, net | $(2,876) | $(4,110) | | Provision for income taxes | $23 | $4 | | Strategic alternative expenses | $0 | $425 | | **Adjusted EBITDA (non-GAAP)** | **$(3,500)** | **$(3,383)** | | **Adjusted EBITDA Margin (non-GAAP)** | **(7.8)%** | **(7.6)%** | [Additional Information](index=2&type=section&id=Additional%20Information) This section includes important disclosures regarding forward-looking statements, webcast details, and contact information [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a cautionary statement regarding forward-looking statements, highlighting the inherent risks and uncertainties that could cause actual results to differ materially from projections, and clarifies the company's policy on updating such statements - The press release contains forward-looking statements, including financial guidance for Q3 2025, and statements about customer engagement, resource alignment, and marketing efforts[15](index=15&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from expectations, including the ability to execute business plans, achieve growth, manage costs, and macroeconomic conditions[16](index=16&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[17](index=17&type=chunk) [Webcast and Disclosure Information](index=2&type=section&id=Webcast%20and%20Disclosure%20Information) 1stDibs hosted a webcast for its Q2 2025 financial results and outlined its various channels for public disclosure of material information - 1stDibs hosted a webcast on August 6, 2025, at 8:00 a.m. Eastern Time to discuss its second quarter 2025 financial results, with a replay available on its Investor Relations website (investors.1stdibs.com)[11](index=11&type=chunk) - The company discloses material information through SEC filings, press releases, company blog posts, public conference calls, webcasts, and its investor relations website, in compliance with Regulation FD[12](index=12&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) Contact details are provided for media and investor relations inquiries - Media Contact: Jennifer Miller (jennifer.miller@1stdibs.com)[14](index=14&type=chunk) - Investor Relations Contact: Kevin LaBuz (investors@1stdibs.com)[14](index=14&type=chunk)

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]

Company Overview - 1stDibs' mission is to enrich lives with extraordinary design[9] - The company operates an asset-light, two-sided marketplace connecting buyers and sellers of luxury goods[12] - As of December 31, 2024, 1stDibs has 7 million registered users[18] Financial Performance - In Q4 2024, 1stDibs achieved Gross Merchandise Volume (GMV) of $94.5 million[28] - Q4 2024 revenue reached $22.8 million[28] - The company's Q4 2024 Adjusted EBITDA was a loss of $1.6 million[28] - 1stDibs reported a gross margin of 72%[18] - For the trailing twelve months (TTM) through Q4 2024, 1stDibs' GMV was $362 million and revenue was $88 million[18] Marketplace Metrics - 1stDibs has 64,300 active buyers[18] - The marketplace features supply from 5,900 unique sellers[18] - The total seller stock value on the platform is over $10 billion[18]