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]

Group 1 - Expedia reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.42 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -4.76% [1] - The company posted revenues of $2.99 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.27%, compared to $2.89 billion in the same quarter last year [2] - Over the last four quarters, Expedia has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 10.6% since the beginning of the year, while the S&P 500 declined by -4.3% [3] - The current consensus EPS estimate for the coming quarter is $4.05 on revenues of $3.74 billion, and for the current fiscal year, it is $14.31 on revenues of $14.33 billion [7] - The Zacks Industry Rank indicates that the Internet - Commerce sector is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Group 1 - MercadoLibre reported quarterly earnings of $9.74 per share, exceeding the Zacks Consensus Estimate of $7.67 per share, and up from $6.78 per share a year ago, indicating strong performance [1] - The company achieved a revenue of $5.94 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.39%, compared to $4.33 billion in the same quarter last year [3] - Over the last four quarters, MercadoLibre has surpassed consensus EPS estimates three times and revenue estimates four times, showcasing consistent growth [2][3] Group 2 - The stock has increased approximately 31.1% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500, indicating strong market performance [4] - The current consensus EPS estimate for the upcoming quarter is $10.42 on revenues of $6.08 billion, and for the current fiscal year, it is $46.12 on revenues of $25.79 billion [8] - The Internet - Commerce industry, to which MercadoLibre belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for the sector [9]

Core Viewpoint - Etsy reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.50 per share, representing an earnings surprise of -8% [1]. Financial Performance - The company posted revenues of $651.18 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.33% and showing a year-over-year increase from $645.95 million [2]. - Over the last four quarters, Etsy has surpassed consensus revenue estimates three times [2]. Stock Performance - Etsy shares have declined approximately 12.8% since the beginning of the year, compared to a decline of -5.5% for the S&P 500 [3]. - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $638.28 million, and for the current fiscal year, it is $2.60 on revenues of $2.77 billion [7]. Industry Outlook - The Internet - Commerce industry, to which Etsy belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8]. - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Etsy's stock performance [5]. Future Expectations - The estimate revisions trend for Etsy is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]. - The upcoming earnings call will be crucial for assessing the sustainability of the stock's price movement based on management's commentary [3].

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]

1stdibs.Com, Inc. (NASDAQ:DIBS) Q2 2023 Earnings Conference Call August 9, 2023 8:00 AM ET Company Participants Kevin LaBuz - Head-Investor Relations & Corporate Development David Rosenblatt - Chief Executive Officer Thomas Etergino - Chief Financial Officer Conference Call Participants Mark Mahaney - Evercore ISI Ralph Schackart - William Blair Trevor Young - Barclays Steven McDermott - Bank of America Operator Good day, and thank you for standing by. Welcome to the 1stdibs.com Second Quarter 2023 Earnings ...

Financial Performance - Gross Merchandise Value (GMV) for Q3 2022 was $99.2 million, a decrease of 9.1% from $109.2 million in Q3 2021[96] - Number of Orders in Q3 2022 was 35,235, down 5.7% from 37,355 in Q3 2021[96] - Active Buyers remained at 68,011 in Q3 2022, a decline of 5.2% from 71,783 in Q3 2021[96] - Net revenue for the three months ended September 30, 2022, was $22.7 million, a decrease of $2.8 million or 11% compared to $25.6 million for the same period in 2021[113] - Gross profit for the three months ended September 30, 2022, was $15.5 million, with a gross margin of 68.0%, down from $18.1 million and 70.6% in the prior year[115] - Net loss for the three months ended September 30, 2022, was $9.0 million, compared to a net loss of $6.6 million for the same period in 2021[110] - For the nine months ended September 30, 2022, net revenue was $73.9 million, a decrease of $1.9 million or 3% compared to $75.8 million in the prior year[119] - Gross profit for the nine months ended September 30, 2022, was $51.0 million, with a gross margin of 69.0%, down from $53.9 million and 71.2% in the prior year[120] Expenses and Losses - Adjusted EBITDA for Q3 2022 was $(5.5) million, compared to $(5.4) million in Q3 2021, indicating a slight increase in losses[96] - Operating expenses totaled $25.3 million for the three months ended September 30, 2022, compared to $25.0 million in the same period of 2021, resulting in a loss from operations of $9.9 million[110] - Sales and marketing expenses decreased by $1.8 million or 14% to $11.1 million for the three months ended September 30, 2022, primarily due to reduced discretionary spending[116] - Technology development expenses increased by $1.6 million or 33% to $6.4 million for the three months ended September 30, 2022, driven by higher stock-based compensation[116] - General and administrative expenses increased by 35% to $20.6 million for the nine months ended September 30, 2022, compared to $15.2 million in the prior year[120] - Provision for transaction losses was $1.2 million for the three months ended September 30, 2022, a decrease of 7% from $1.3 million in the prior year[117] - Provision for transaction losses was $4.4 million for the nine months ended September 30, 2022, a 17% increase from $3.8 million in the same period of 2021[122] Cash Flow and Financial Position - Net cash used in operating activities was $22.4 million for the nine months ended September 30, 2022, compared to $5.5 million in the same period of 2021[127] - Net cash provided by investing activities was $12.8 million for the nine months ended September 30, 2022, compared to a net cash used of $1.7 million in the prior year, primarily due to proceeds from the sale of Design Manager[129] - Net cash provided by financing activities decreased to $1.5 million for the nine months ended September 30, 2022, down from $119.6 million in the same period of 2021[130] - As of September 30, 2022, the company had cash and cash equivalents of $158.0 million and an accumulated deficit of $284.2 million[126] Business Operations - The company incurred approximately $0.6 million in non-recurring restructuring charges due to a workforce reduction of about 10%[90] - The sale of Design Manager on June 29, 2022, generated a net gain of $9.7 million for the company[91] - The company transitioned to a fully remote work environment due to COVID-19, impacting operational metrics and employee engagement[92] - Seller marketplace services revenue is derived from commissions ranging from 5% to 50% and processing fees of 3% on successful transactions[102] - The company operates an asset-light business model, facilitating shipping and fulfillment logistics without taking physical possession of items sold[89] - Future revenue is expected to exclude software services following the sale of Design Manager, which will impact overall revenue composition[102] Market and Economic Factors - The company's net revenue is mainly denominated in U.S. dollars, Euros, and British pounds, with no single customer accounting for more than 10% of net revenue for the three and nine months ended September 30, 2022[140] - A hypothetical 100 basis point change in interest rates would not materially affect the fair value of the company's cash and cash equivalents[136] - As of September 30, 2022, a 10% increase or decrease in current exchange rates would not have a material impact on the consolidated financial statements[139] - The company has maintained provisions for potential credit losses, which have been within expectations to date[140] - The effects of inflation on the company's results of operations and financial condition have been deemed immaterial[141]