1stdibs.com(US:DIBS)2022-03-02 02:59Financial Data and Key Metrics Changes - For the full year 2021, GMV grew 31% and revenue grew 25% [5] - In Q4 2021, GMV was $117 million, up 11%, with a two-year stack growth of 52% [24] - Net revenue for Q4 was $26.9 million, growing 13% driven by GMV growth [27] - Gross profit was $16.6 million, down 3%, with a gross profit margin of 61.7%, down from 72% a year ago [27][28] - Adjusted EBITDA loss was $6.8 million, compared to a loss of $0.9 million a year ago, reflecting a margin loss of 25% versus 4% last year [31] Business Line Data and Key Metrics Changes - Active buyers increased to nearly 72,500, up 25% year-over-year [26] - Average order value (AOV) increased 8% in Q4, driven by new and custom furniture growth [26] - Trade GMV growth outpaced consumer GMV growth, with consumer GMV growing 61% and trade GMV growing 41% on a two-year stack basis [25] Market Data and Key Metrics Changes - Over 40% of sellers and one-third of traffic were located outside the United States, indicating significant international engagement [13] - International conversion rates are about half of U.S. conversion rates, highlighting the potential for improvement through localization [13] Company Strategy and Development Direction - The company plans to enhance growth by focusing on four levers: auctions, product localization, supply growth, and NFTs [9][31] - Auctions launched in November 2021 have shown early success, with over 15% of sellers listing items for auction [10][41] - Product localization will begin with French and German sites, aiming to improve conversion rates for non-U.S. traffic [12][70] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in consumer demand in December, attributed to early holiday shopping and IDFA impacts [38] - The company expects GMV growth to gain momentum in the second half of 2022, despite current macroeconomic uncertainties [33] - Management expressed confidence in the strength of the marketplace fundamentals and the potential for growth through strategic initiatives [20][31] Other Important Information - The CFO, Tu Nguyen, announced her departure, with Thomas Etergino set to succeed her [21][22] - The company ended 2021 with $168 million in cash and cash equivalents, indicating a strong financial position [32] Q&A Session Summary Question: Insights on December slowdown and January performance - Management noted a strong start to Q4 but a drop in consumer demand in December, partly due to early holiday shopping and IDFA impacts [38] Question: Incrementality of auctions and revenue potential - Early results from auctions validated the launch thesis, with most auction GMV considered incremental [41][43] Question: Interest from buyers in auction items - Engagement from buyers has been positive, with a focus on educating sellers about effective pricing for auctions [46] Question: Long-term strategy regarding seller subscription fees - Management believes reducing subscription fees could increase supply and conversion rates, enhancing overall marketplace traffic [51] Question: Shipping cost impacts on gross margin - Shipping losses in Q4 were attributed to unexpected increases in shipping costs, which are not expected to recur [57] Question: Localization opportunities in Germany and France - Localization is viewed as a long-term opportunity, with initial investments in translation and marketing planned for 2022 [69][71] Question: IDFA headwinds and first-party data initiatives - The company is focused on increasing first-party data volume and testing new remarketing tactics to mitigate IDFA impacts [72]