Financial Data and Key Metrics Changes - GMV was $91.7 million, down 6%, but growth rates increased by 11 percentage points compared to the fourth quarter [15] - Adjusted EBITDA loss was $1.8 million, an improvement from a loss of $5.2 million last year, with adjusted EBITDA margin loss improving from negative 24% to negative 8% [28][32] - Net revenue was $22.1 million, down 1%, while gross profit was $16 million, up 7%, marking the first growth since Q1 2022 [22][23] Business Line Data and Key Metrics Changes - Average order value was approximately $2,600, down 5%, while median order value remained flat at approximately $1,200 [17][18] - Consumer GMV and trade GMV declined at similar rates, but consumer orders grew for the first time since Q3 2021 [18][19] - The number of unique sellers was over 7,600, up 6% year over year, but down modestly from the previous quarter due to higher churn [13][20] Market Data and Key Metrics Changes - Active buyers stabilized at approximately 60,700, down 9% year over year but flat sequentially [19] - Traffic and average order value were headwinds to GMV growth, but conversion gains helped offset some of these challenges [16] Company Strategy and Development Direction - The company aims to return to growth while maintaining a leaner cost structure, focusing on personalized buying experiences, competitive inventory, pricing, and scalability [7] - The strategy includes enhancing the buyer experience through reduced friction, improved logistics, and optimized marketing efforts [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the luxury housing market, indicating that the worst of the down cycle for luxury home furnishings may be behind [15] - The company expects continued conversion improvements and a return to order growth in the second quarter, supported by a strong pipeline of initiatives [11][39] Other Important Information - The company ended the quarter with a strong cash position of $134 million and has repurchased $2.9 million of shares under its buyback program [29] - The company has reduced expenses by over $28 million on an annualized basis, addressing many cost-saving opportunities [47] Q&A Session Summary Question: A/B testing and GMV acceleration - Management noted that while the luxury housing market is improving, it remains marginal, and conversion rates have improved for seven consecutive quarters, with a positive outlook for GMV trends [42][43] Question: Cost management and profitability - Management emphasized the importance of expense management and scalability, stating there are no immediate plans to change the current cost structure but will remain responsive to demand [45]
1stdibs.com(DIBS) - 2024 Q1 - Earnings Call Transcript