1stdibs.com(DIBS) - 2025 Q2 - Quarterly Results

Executive Summary 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 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 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] - 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] Financial Guidance and Outlook (Q3 2025) 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 This section provides an overview of 1stDibs' business model as a luxury online marketplace and defines its key operational metrics About 1stDibs 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] Key Operating Metrics Definitions 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] - Number of Orders represents the total number of orders placed or reported through the 1stDibs marketplace in a given month, minus cancellations[19] - 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] Condensed Consolidated Financial Statements 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 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 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 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] Non-GAAP Financial Measures 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 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 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] - Adjusted EBITDA Margin is the Adjusted EBITDA divided by net revenue[28] - 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] - 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] Reconciliation of Net Loss to Adjusted EBITDA 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 This section includes important disclosures regarding forward-looking statements, webcast details, and contact information Forward-Looking Statements 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] - 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] - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[17] Webcast and Disclosure Information 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] - 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] Contact Information Contact details are provided for media and investor relations inquiries - Media Contact: Jennifer Miller (jennifer.miller@1stdibs.com)[14] - Investor Relations Contact: Kevin LaBuz (investors@1stdibs.com)[14]