1stdibs.com(US:DIBS)2025-05-12 12:34Financial 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]