1stdibs.com(US:DIBS)2023-05-10 17:05Financial Data and Key Metrics Changes - The company reported GMV of $97.1 million, down 17% year-over-year due to soft demand for luxury home goods [71] - Gross profit was $14.9 million, down 21%, with gross profit margins at 67%, down from 71% a year ago [52][72] - Adjusted EBITDA loss was $5.3 million compared to a loss of $4.7 million last year, with an adjusted EBITDA margin loss of 24% versus a loss of 18% last year [55][71] Business Line Data and Key Metrics Changes - Jewelry orders grew 12% year-over-year, while demand for at-home categories like art and furniture remained soft [3] - Auctions accounted for over 6% of total orders, with a record number of auction orders growing approximately 10% sequentially [47][89] - The company ended the quarter with over 8,100 seller accounts, up nearly 50%, and listings grew 20% to over 1.6 million items [48][90] Market Data and Key Metrics Changes - Organic traffic growth in international markets like France and Germany was over 200% year-over-year, with double-digit order growth [22] - The company plans to enter Italy and Spain later in 2023, leveraging learnings from previous market launches [42][66] Company Strategy and Development Direction - The company is focused on improving pricing transparency and providing better pricing tools for buyers and sellers [62] - Strategic initiatives include localized marketplaces and enhancing the visibility of competitively priced listings [43][46] - The company aims to stabilize and reaccelerate GMV growth by improving conversion rates, particularly for new buyers [60][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the luxury home goods market and indicated that it may take time to see significant improvements [40] - The company is evaluating additional steps to align expenses with current demand due to a growth outlook below initial expectations [60][93] - Management noted that while traffic and supply growth are strong, conversion rates remain a significant challenge [94] Other Important Information - The company ended the quarter with a strong cash position of $150.5 million, with interest income increasing to approximately $1.5 million [75] - The company introduced new pricing guidance features for sellers and launched new discovery experiences for buyers [43][44] Q&A Session Summary Question: Can you discuss the demand trends and their representation in the market? - Management indicated that the underlying drivers of demand remain consistent, with strong traffic and supply but challenges in conversion rates [78] Question: What was the cadence of performance throughout the quarter? - Management noted that there was no material change in performance month-to-month, although the banking situation had a negative impact [98] Question: How is the strategic review progressing? - Management confirmed that the strategic review is active and committed to evaluating all possible alternatives to improve shareholder value [99] Question: What is the outlook for AOV and its implications? - AOV was down 8% year-over-year, indicating a macro phenomenon affecting all price tiers, with auctions contributing to lower AOV [101] Question: How is the company addressing pricing challenges? - Management emphasized the importance of leveraging historical transactional data to help buyers and sellers with pricing strategies [85]