1stdibs.com(US:DIBS)2025-02-28 19:27Financial Data and Key Metrics Changes - The company achieved GMV of $94.5 million, up 9%, marking the fastest growth in three years [32] - Revenue increased by $3.6 million, representing a 9% year-over-year growth, the fastest growth rate in three years [39] - Adjusted EBITDA improved by $5.3 million, demonstrating operating leverage potential [13] 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] - Average order value rose to approximately $2,600, up 2%, while median order value increased to approximately $1,200, up 4% [34] - Unique sellers decreased to approximately 5,900, down 24%, due to elevated churn from the retirement of the essential seller program [20] 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] - Despite market contraction, the company gained market share, with GMV growth rates accelerating approximately 14 percentage points sequentially [33] 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 [12] - The roadmap for 2025 focuses on creating value for both buyers and sellers, emphasizing organic traffic growth, competitive pricing, and optimizing the conversion funnel [23][24][26] - The company plans to maintain headcount flat while unlocking operating leverage at mid-single digit revenue growth [14][45] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the down cycle for luxury home furnishings is behind, but the pace and timing of recovery remain uncertain [22] - The company expects GMV to grow year-over-year in 2025, assuming no major changes in the macro environment [50] - Management remains focused on maintaining financial discipline while driving growth and capturing market share [51] Other Important Information - The company repurchased approximately 5.6 million shares for $28.1 million in 2024, indicating confidence in the business [29] - Operating expenses declined for the second consecutive year, demonstrating commitment to financial discipline [51] Q&A Session Summary Question: Marketing strategy amidst depressed home transactions - Management emphasized customer acquisition as the most important part of marketing, with successful efforts on Facebook and improvements in primary channels like Google [57][58] Question: Efforts related to Agentic AI - Management highlighted the focus on AI and ML, particularly in pricing optimization, with plans to roll out machine learning models across various categories [60][61] Question: Main levers to bring adjusted EBITDA closer to positive territory - Management stated that sustained revenue and GMV growth are key to achieving breakeven and positive adjusted EBITDA [68][69] Question: Update on churn normalization - Management expects churn to normalize in the first half of 2025, with listings growth remaining steady despite elevated churn due to program changes [75] Question: Clarification on mid-single digit revenue growth - Management indicated that while they do not provide full-year guidance, they are confident in the ability to grow GMV in 2025, with an expense base structured to deliver operating margin leverage [79]