1stdibs.com(DIBS)2025-02-28 19:02Financial 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]