1stdibs.com(US:DIBS)2024-08-06 14:07Financial 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]