1stdibs.com(US:DIBS)2025-11-07 13:40Financial Performance - Gross Merchandise Value (GMV) for Q3 2025 was $89.1 million, a 5.2% increase from $84.6 million in Q3 2024[94] - Net revenue for Q3 2025 was $22.0 million, up 4% from $21.2 million in Q3 2024, driven by an increase in average order value[111] - Net revenue for the nine months ended September 30, 2025, was $66.7 million, up $1.2 million or 2% from $65.5 million in 2024, driven by an increase in GMV and average order value[121] Order and Buyer Metrics - Number of Orders decreased to 31,960 in Q3 2025 from 33,347 in Q3 2024, representing a decline of 4.1%[94] - Active Buyers remained stable at 63,195 in Q3 2025 compared to 62,527 in Q3 2024, showing a slight increase of 1.1%[94] Profitability and Loss - Adjusted EBITDA for Q3 2025 was $(243) thousand, an improvement from $(2,983) thousand in Q3 2024[94] - Loss from operations improved to $(4.7) million in Q3 2025 compared to $(7.4) million in Q3 2024[109] - Net loss for Q3 2025 was $(3.5) million, a decrease from $(5.7) million in Q3 2024, reflecting a 38.4% improvement[109] Revenue Composition - Marketplace transaction fees accounted for 74% of net revenue in both Q3 2025 and Q3 2024, while subscription fees represented 21% and 22% respectively[112] Expenses - Total operating expenses decreased to $21.0 million in Q3 2025 from $22.4 million in Q3 2024, a reduction of 6.3%[109] - Cost of revenue decreased to $5.6 million for the three months ended September 30, 2025, down $0.5 million or 8% from $6.2 million in 2024, primarily due to lower shipping expenses and credit card processing fees[113] - Sales and marketing expenses were $8.0 million for the three months ended September 30, 2025, a decrease of $1.2 million or 13% from $9.1 million in 2024, mainly due to reduced performance-based marketing[115] - Technology development expenses rose to $5.9 million for the three months ended September 30, 2025, an increase of $0.4 million or 8% from $5.5 million in 2024, primarily due to higher salaries and benefits[116] Cash Flow and Investments - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $93.4 million, with an accumulated deficit of $345.0 million[135] - Net cash used in operating activities for the nine months ended September 30, 2025, was $6.7 million, compared to $5.7 million for the same period in 2024[142][144] - For the nine months ended September 30, 2025, net cash provided by investing activities was $4.2 million, primarily from $56.8 million in maturities and sales of short-term investments[145] Future Outlook and Risks - The company continues to face challenges from macroeconomic factors, including housing market volatility and global economic developments, impacting GMV and net revenue[111] - The company expects to continue incurring substantial expenditures to support ongoing activities and may need to borrow funds or raise additional equity for long-term objectives[136][137] - The company performed a goodwill impairment assessment, indicating that goodwill may be at risk of impairment in the future due to a decline in stock price[149] - 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[156] - 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, 2025[158] Accounting and Compliance - The company has maintained provisions for potential credit losses, with no single customer accounting for more than 10% of net revenue for the periods ended September 30, 2025, and 2024[159] - The company is classified as an emerging growth company and has elected to delay adopting new accounting standards until they apply to private companies[152] Stock Repurchase Program - The 2023 Stock Repurchase Program authorized repurchases of up to $25.5 million, with 4,926,635 shares repurchased at a cost basis of $25.4 million as of September 30, 2025[138][140]