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

Financial Performance - Net revenue for Q4 2024 was $22.8 million, a 9% increase year-over-year[5] - Gross profit for Q4 2024 was $16.5 million, reflecting a 10% year-over-year growth[5] - Full year 2024 net revenue reached $88.3 million, a 4% increase compared to the previous year[5] - Full year 2024 gross profit was $63.4 million, a 6% increase year-over-year[5] - Net revenue for Q4 2024 was $22,770 million, a 8.8% increase from $20,922 million in Q4 2023[24] - Gross profit for the year ended December 31, 2024, reached $63,426 million, up from $59,573 million in 2023, reflecting a growth of 6.9%[24] Margins and EBITDA - Gross margin improved to 72.3% in Q4 2024, up from 71.5% in Q4 2023[5] - Adjusted EBITDA margin for Q1 2025 is projected to be between (12%) and (8%)[7] - Adjusted EBITDA for Q4 2024 was $(1,643) million, slightly improved from $(1,705) million in Q4 2023[34] - Adjusted EBITDA margin for the year ended December 31, 2024, was (9.1)%, an improvement from (15.8)% in 2023[34] Operating Expenses and Losses - Total operating expenses increased to $89,641 million for the year ended December 31, 2024, compared to $90,600 million in 2023, a decrease of 1.1%[24] - The net loss for the year ended December 31, 2024, was $18,633 million, an improvement from a net loss of $22,699 million in 2023, representing a reduction of 17.9%[27] Cash Flow - Cash flows from operating activities showed a net cash used of $2,910 million in 2024, compared to $13,556 million in 2023, indicating a significant reduction in cash outflow[27] - The company reported a net cash provided by investing activities of $22,291 million in 2024, contrasting with a net cash used of $100,232 million in 2023[27] Customer Metrics - Gross Merchandise Value (GMV) for Q4 2024 was $94.5 million, a 9% increase year-over-year[11] - The number of orders in Q4 2024 was approximately 37,000, a 7% increase year-over-year[11] - Active buyers increased to approximately 64,000, reflecting a 6% year-over-year growth[11] Future Guidance - The company expects Q1 2025 net revenue guidance to be between $21.7 million and $22.8 million[7] Shares and Compensation - The weighted average common shares outstanding for Q4 2024 was 36,327,939, down from 39,953,131 in Q4 2023[24] - The company incurred stock-based compensation expense of $14,776 million for the year ended December 31, 2024, compared to $12,363 million in 2023, reflecting a 19.5% increase[34]

Investor Presentation Q3 2024 1 Forward-Looking Statements and Non-GAAP Financial Information This presentation contains statements about 1stdibs.com, Inc.'s (the "Company") future financial results, plans, and efforts to expand our market share that are "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial risks and uncertainties. Any statements contained in this presentation ...

Financial Data and Key Metrics Changes - The company achieved GMV of $84.6 million, down 5% year-over-year, with a sequential deceleration of approximately 7 percentage points in GMV growth rates due to lower than anticipated average order value (AOV) [29][30] - Net revenue was $21.2 million, up 3%, marking the second consecutive quarter of year-over-year growth [37] - Adjusted EBITDA loss was $3 million, compared to a loss of $1.8 million last year, with an adjusted EBITDA margin loss of 14% versus a loss of 9% last year [41] Business Line Data and Key Metrics Changes - Average order value was approximately $2,500, down 11%, while median order value was approximately $1,200, down 3% [30] - Orders grew by 7%, with conversion rates increasing year-over-year for four consecutive quarters, indicating strong operational performance [10][33] - The company ended the quarter with over 1.8 million listings, up 7%, despite a decline in unique sellers by 13% [22][36] Market Data and Key Metrics Changes - Active buyers totaled approximately 62,500, down 1% year-over-year but up 2% sequentially, indicating a positive trend in order growth [35] - The luxury housing market remains soft, with U.S. existing home sales on track for their worst year since 1995 [12] - The company is experiencing a muted demand environment, which is expected to continue into the fourth quarter [45] Company Strategy and Development Direction - The company is focused on lowering the growth threshold required to achieve operating leverage, targeting mid-single-digit revenue growth for 2025 [9][61] - The decision to discontinue the Auctions feature was made to reallocate resources to more impactful initiatives, such as machine learning-based pricing strategies [19][58] - The company is concentrating on improving conversion rates and order growth while managing costs effectively to prepare for a market rebound [26][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the luxury housing market but remains optimistic about the company's operational improvements and market share gains [13][48] - The company expects GMV growth to return in the fourth quarter, driven by conversion gains and moderating AOV headwinds [7][45] - Management does not anticipate a market recovery in the near term but is focused on executing its strategy to outperform the market [54] Other Important Information - The company initiated a new $10 million share repurchase program in August, following a $25 million program completed in June [25][43] - The Essential Seller Program was retired to focus on more engaged sellers, which is expected to normalize churn rates in the first half of 2025 [21][66] Q&A Session Summary Question: Can you discuss the AOV headwinds and the timeline for stabilization? - Management noted that AOV headwinds were due to a record quarter for high-value orders last year and that normalization is expected in Q4 [50] Question: What are the implications of the housing market on transaction volumes? - Management indicated that while they do not forecast macroeconomic trends, they aim to grow faster than the market and have seen positive performance relative to luxury furnishing spending [52][53] Question: What is the impact of discontinuing the Auctions feature? - Management stated that Auctions accounted for a minimal portion of orders and revenue, and resources will be better allocated to other pricing strategies [58][59] Question: How does the cost structure relate to achieving EBITDA break-even? - Management clarified that they do not provide forward-looking guidance beyond one quarter but are focused on improving efficiency to achieve operating leverage [61] Question: What factors will help normalize churn rates? - Management explained that the transition from the Essential Seller Program to fee-paying sellers will stabilize churn rates, with no significant impact on listings or GMV [66]

Core Viewpoint - 1stdibs.com (DIBS) reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, and a decline from a loss of $0.08 per share a year ago, indicating a negative earnings surprise of -15.38% [1] Financial Performance - The company posted revenues of $21.19 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.94%, but showing an increase from $20.66 million in the same quarter last year [2] - Over the last four quarters, 1stdibs has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - 1stdibs shares have declined approximately 7.1% since the beginning of the year, contrasting with the S&P 500's gain of 25.2% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is -$0.14 on revenues of $21.86 million, and for the current fiscal year, it is -$0.47 on revenues of $87.77 million [7] Industry Context - The Internet - Commerce industry, to which 1stdibs belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Chewy (CHWY), another company in the same industry, is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of +53.3% [9]

Financial Performance - Gross Merchandise Value (GMV) for the three months ended September 30, 2024, was $84,613,000, a decrease of 4.8% from $88,983,000 for the same period in 2023[82] - The number of orders increased to 33,347 for the three months ended September 30, 2024, compared to 31,202 for the same period in 2023, representing a growth of 6.9%[82] - Active buyers totaled 62,527 for the three months ended September 30, 2024, slightly down from 63,227 in the same period of 2023[82] - Adjusted EBITDA for the three months ended September 30, 2024, was $(2,983,000), compared to $(1,802,000) for the same period in 2023, indicating a worsening performance[82] - Net revenue for the three months ended September 30, 2024, was $21,190,000, an increase from $20,663,000 in the same period of 2023[90] - Cost of revenue for the three months ended September 30, 2024, was $6,154,000, compared to $5,510,000 for the same period in 2023[90] - Gross profit for the three months ended September 30, 2024, was $15,036,000, slightly down from $15,153,000 in the same period of 2023[90] - Total operating expenses for the three months ended September 30, 2024, were $22,428,000, compared to $20,386,000 for the same period in 2023, reflecting an increase of 10.0%[90] - The net loss for the three months ended September 30, 2024, was $(5,683,000), compared to $(3,305,000) for the same period in 2023, indicating a larger loss year-over-year[90] - Net revenue for the three months ended September 30, 2024, was $21.2 million, a 3% increase from $20.7 million in the same period of 2023[93] - Cost of revenue increased to $6.2 million for the three months ended September 30, 2024, up 12% from $5.5 million in 2023, primarily due to higher shipping and processing fees[94] - Gross profit for the three months ended September 30, 2024, was $15.0 million, with a gross margin of 71.0%, down from $15.2 million and 73.3% in 2023[95] - Sales and marketing expenses rose to $9.1 million for the three months ended September 30, 2024, a 9% increase from $8.4 million in 2023[96] - Technology development expenses increased by 21% to $5.5 million for the three months ended September 30, 2024, compared to $4.5 million in 2023[97] - Net loss before income taxes for the three months ended September 30, 2024, was $(27) million, compared to $(16) million in 2023[93] - For the three months ended September 30, 2024, the net loss was $5.7 million, compared to a net loss of $3.3 million for the same period in 2023, representing an increase of 72%[110] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(6.4) million, an improvement from $(11.6) million in the same period of 2023, indicating a 45% reduction in losses[110] Cash Flow and Investments - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling $109.4 million, with an accumulated deficit of $327.1 million[111] - Net cash used in operating activities for the nine months ended September 30, 2024, was $5.7 million, a decrease from $11.5 million in the same period of 2023, reflecting improved cash flow management[113] - The company repurchased 4.3 million shares of common stock for a total cost of $22.8 million during the nine months ended September 30, 2024, as part of its stock repurchase programs[112] - Net cash provided by investing activities was $15.3 million for the nine months ended September 30, 2024, primarily due to $85.6 million in maturities and sales of short-term investments[115] Business Model and Market Conditions - The company operates an asset-light business model, facilitating shipping and fulfillment logistics without taking physical possession of items sold[74] - The company expects to continue incurring substantial expenditures to support ongoing activities and may need to raise additional capital to achieve long-term business objectives[112] - A hypothetical 100 basis point change in interest rates could result in an approximate $0.7 million increase or decrease in cash, cash equivalents, and short-term investments[122] - The company anticipates that an adverse 10% change in current exchange rates could lead to a decrease of no more than $2.4 million in net revenue for the nine months ended September 30, 2024[123] - No single customer accounted for more than 10% of net revenue for the three and nine months ended September 30, 2024, indicating a diversified customer base[124] - The company's operations and financial condition are presented based on historical cost, indicating potential challenges in accurately measuring inflation's impact[125] - Key metrics such as GMV and net revenue have been negatively affected by macroeconomic factors, including inflation and market volatility[125] - There is a risk that rising costs due to inflation may not be fully offset by increases in net revenue and GMV, potentially harming the business[125] - The company cannot assure that its business will remain unaffected by inflation in the future[125]

Financial Performance - Net revenue for Q3 2024 was $21.2 million, a 3% increase year-over-year[2] - Gross profit was $15.0 million, reflecting a 1% decrease year-over-year[2] - Gross margin decreased to 71.0% from 73.3% in Q3 2023[2] - GAAP net loss was $5.7 million, compared to a net loss of $3.3 million in Q3 2023[2] - Net revenue for Q3 2024 was $21,190,000, a 2.6% increase from $20,663,000 in Q3 2023[24] - Gross profit for Q3 2024 was $15,036,000, slightly down from $15,153,000 in Q3 2023[24] - Net loss for Q3 2024 was $5,683,000, compared to a net loss of $3,305,000 in Q3 2023, indicating a worsening of 72.0%[24] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(6,366,000), compared to $(11,635,000) for the same period in 2023[32] - Adjusted EBITDA margin for Q3 2024 was (14.1)%, compared to (8.7)% in Q3 2023[32] Operational Metrics - Gross Merchandise Value (GMV) was $84.6 million, a 5% decrease year-over-year[3] - Number of Orders increased by 7% year-over-year to approximately 33,000[3] - Active Buyers decreased by 1% year-over-year to approximately 63,000[3] - Fourth quarter 2024 GMV guidance is between $86 million and $93 million[6] - Fourth quarter 2024 net revenue guidance is between $21.4 million and $22.7 million[6] Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2024, was $(5,708,000), an improvement from $(11,475,000) in the same period of 2023[26] - Cash, cash equivalents, and restricted cash at the end of the period were $25,659,000, down from $35,778,000 at the end of September 2023[26] - Total cash provided by investing activities was $15,325,000 for the nine months ended September 30, 2024, compared to $(109,600,000) in the same period of 2023[26] Shareholder Actions - The company has authorized a stock repurchase program of up to $10.0 million[3] - The company reported a decrease in weighted average common shares outstanding from 39,962,932 in Q3 2023 to 36,719,249 in Q3 2024[24] Operating Expenses - Total operating expenses increased to $22,428,000 in Q3 2024 from $20,386,000 in Q3 2023, representing a 10.1% rise[24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number 333-256188 1stdibs.com, Inc. (Exact name of registrant as specified in its charter) Delaware 94-3389618 (State o ...

Financial Performance - Net revenue reached $22.2 million, a 6% increase year-over-year[2] - Gross profit increased by 9% year-over-year to $15.9 million[2] - Gross margin improved to 71.7% compared to 69.8% in the second quarter of 2023[2] - GAAP net loss significantly decreased to $4.4 million from $8.3 million in the second quarter of 2023[2] - Adjusted EBITDA margin improved to -7.1% from -21.9% in the second quarter of 2023[2] Operating Metrics - GMV increased by 2% year-over-year to $91.5 million[3] - The number of orders increased by 5% year-over-year to approximately 34,000[3] - Active buyers decreased by 6% year-over-year to approximately 61,000[4] Financial Position - Cash, cash equivalents, and short-term investments totaled $110.6 million as of June 30, 2024[2] Q3 2024 Guidance - GMV is projected to be between $84 million and $91 million[6] - Net revenue is expected to range from $20.8 million to $22.1 million[6] - Adjusted EBITDA margin is forecasted to be between -15% and -10%[6]

Financial Data and Key Metrics Changes - The company reported GMV of $91.5 million, up 2%, with growth rates increasing seven percentage points sequentially [17] - Net revenue was $22.2 million, up 6%, marking the first quarter of revenue growth since early 2022 [20] - Adjusted EBITDA was a loss of $1.6 million, an improvement from a loss of $4.6 million last year, with an adjusted EBITDA margin loss of 7% compared to a loss of 22% last year [22] Business Line Data and Key Metrics Changes - Returning buyer conversion hit a record high, and new buyer conversion grew double digits year-over-year [18] - Orders grew by 5%, driven by conversion improvements and increased performance marketing investments [8] - Average order value was approximately $2,700, down 3%, while median order value was approximately $1,200, down 2% [18] Market Data and Key Metrics Changes - The broader online furniture and premium furnishings markets are contracting, with luxury home goods demand down mid to high single digits [31] - Approximately 61,200 active buyers were reported, down 6% year-over-year but up 1% sequentially [19] - The company ended the quarter with approximately 7,450 unique sellers, down 5%, but listings grew to over 1.8 million, up 6% [19][14] Company Strategy and Development Direction - The company is focused on increasing conversion rates, improving buyer and seller experiences, and enhancing infrastructure [10][13] - The roadmap includes personalized buying experiences, competitive inventory pricing, and scalability [10] - The company aims to capitalize on market recovery and has made significant strides in capital allocation, completing a $25.2 million share repurchase program [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing improvements in conversion rates and order growth despite a challenging market [5][26] - The company anticipates continued order growth in the third quarter, with expectations for active buyer growth to follow [19] - Management believes the worst of the down cycle for the luxury home furnishings market is behind them, positioning the company to benefit disproportionately when market growth resumes [15] Other Important Information - The company experienced a sequential increase in the number of active buyers for the first time since late 2021 [5] - Adjusted EBITDA benefited from approximately $250,000 in favorable one-time items related to lease and sales tax audit conclusions [22][25] - The company expects GMV guidance for the third quarter to be between $84 million to $91 million, reflecting typical seasonal softness [24] Q&A Session Summary Question: Can you provide additional color on the 3Q guide given the solid 2Q? - Management noted that the third quarter is comping against a quarter last year with an unusually high percentage of high average order value orders, but they still project growth in orders, active buyers, and revenue [29] Question: Is the stabilization of active buyers a trend that will continue? - Management confirmed that active buyers grew sequentially and expects continued order growth in the third quarter, which should convert into active buyer growth [30] Question: What are the expectations for the back half of the year regarding macro pressures? - Management indicated that they are outperforming a weak market and that potential interest rate cuts could stimulate more activity in the real estate market, which would be beneficial [31]