1stDibs Reports Fourth Quarter and Full Year 2024 Financial Results
NEW YORK--(BUSINESS WIRE)--February 28, 2025--
1stdibs.com, Inc. $(DIBS)$, a leading online marketplace for luxury design products ("1stDibs" or the "Company"), today reported financial results for its fourth quarter and year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
--
Net revenue was $22.8 million, an increase of 9% year-over-year.
--
Gross profit was $16.5 million, an increase of 10% year-over-year.
--
Gross margin was 72.3%, compared to 71.5% in the fourth quarter 2023.
--
GAAP net loss was $5.2 million compared to a net loss of $2.9 million
in the fourth quarter 2023.
--
Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(1.6) million
and (7.2)%, respectively, compared to $(1.7) million and (8.1)%,
respectively, in the fourth quarter 2023.
--
Cash, cash equivalents and short-term investments totaled $103.9
million as of December 31, 2024.
Full Year 2024 Financial Highlights
--
Net revenue was $88.3 million, an increase of 4% year-over-year.
--
Gross profit was $63.4 million, an increase of 6% year-over-year.
--
Gross margin was 71.9%, compared to 70.3% in the year ended December
31, 2023.
--
GAAP net loss was $18.6 million, compared to $22.7 million in the year
ended December 31, 2023.
--
Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(8.0) million
and (9.1)%, respectively, compared to $(13.3) million and (15.8)%,
respectively, in the year ended December 31, 2023.
"2024 marked a turning point, highlighted by our highest GMV growth in three years in the fourth quarter," said David Rosenblatt, 1stDibs Chief Executive Officer. "Market share gains and a return to revenue growth in 2024 despite a challenging market are clear signals that our strategy is working. We're excited to continue driving progress in 2025."
Tom Etergino, Chief Financial Officer of 1stDibs said, "We achieved significant progress in 2024, reducing operating expenses for the second consecutive year and delivering our strongest Adjusted EBITDA margins since becoming a public company. As we enter 2025, our focus remains on driving operating leverage and maintaining disciplined expense management."
Other Recent Business Highlights and Fourth Quarter Key Operating Metrics
--
Gross Merchandise Value ("GMV") was $94.5 million, an increase of 9%
year-over-year.
--
Number of Orders was approximately 37K, an increase of 7%
year-over-year.
--
Active Buyers was approximately 64K, an increase of 6% year-over-year.
Financial Guidance and Outlook
The Company's first quarter 2025 guidance is below.
Q1 2025 Guidance
-----------------------------
GMV $90 million - $96 million
Net revenue $21.7 million - $22.8 million
Adjusted EBITDA margin (non-GAAP) (12%) - (8%)
Actual results may differ materially from our Financial Guidance and Outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.
A GAAP reconciliation to our non-GAAP guidance measure (adjusted EBITDA) is not available on a forward-looking basis without unreasonable effort due to the potential variability and uncertainty of expenses that may be incurred in the future. Stock-based compensation expense is impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release.
Webcast Information
1stDibs will host a webcast to discuss its fourth quarter and year ended 2024 financial results today at 8:00 a.m. Eastern Time. Investors and participants can access the webcast at the 1stDibs Investor Relations website (investors.1stdibs.com). A replay of the webcast will be available through the same link following the webcast, for one year thereafter.
Disclosure Information
In compliance with disclosure obligations under Regulation FD, 1stDibs announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, company blog posts, public conference calls and webcasts, as well as the investor relations website.
About 1stDibs
1stDibs is a leading online marketplace for connecting design lovers with highly coveted sellers and makers of vintage, antique, and contemporary furniture, home décor, art, jewelry, watches and fashion.
Forward-Looking Statements
This press release contains or references "forward-looking statements" and "forward-looking information" within the meaning of applicable federal and state securities laws (collectively, "forward-looking statements"). Forward-looking statements include statements relating to our financial guidance for the first quarter of 2025 and underlying assumptions; our ability to improve customer engagement and frequency; our ability to align our resources with strategic growth and profitability; and the impact of our marketing efforts. Any statements in this press release, other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans, objectives of management for future operations, long term operating expenses, and expectations for capital requirements, may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: "accelerate," "anticipate," "believe," "can," "contemplate," "continue," "could," "demand," "estimate," "expand," "expect," "focus," "intend," "may," "might," "objective," "ongoing," "opportunity," "outlook," "plan," "potential," "predict," "progress," "project," "should," "target," "will," "would," or the negative of these terms, or other comparable terminology or similar expressions intended to identify statements about the future.
These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the following: (1) our continued efforts to lay the foundation for future growth; (2) our focus on efficiency and steps to align our expenses to current demand and the impact thereof; (3) our progress towards reaccelarating sustainable growth, reducing our cost, increasing operating leverage, and re-engineering our cost base; (4) the implementation of our stock repurchase program; and (5) our future results of operations and financial position, including our financial guidance and outlook. We cannot guarantee that any forward-looking statement will be accurate. Forward-looking statements are based on current expectations of future events and if these prove to be inaccurate, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to vary materially from those discussed or implied in the forward-looking statements. These risks and uncertainties include but are not limited to the following: (1) our ability to execute our business plan and strategies to achieve our strategic initiatives; (2) our ability to achieve future growth; (3) our ability to enhance GMV growth and shareholder value; (4) our ability to effectively manage costs; (5) our ability to execute our stock repurchase program; (6) our ability to reduce operating costs and realign investment priorities; and (7) macroeconomic conditions or geopolitical events or similar risks, as well as other risks, uncertainties, and other factors discussed in our filings with the Securities and Exchange Commission (the "SEC"), including our Form 10-K for the year ended December 31, 2023 and other periodic reports and filings we make with the SEC. We qualify all of our forward-looking statements by these cautionary statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. These forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, or otherwise, except as required by law.
Key Operating Metrics Definitions
Gross Merchandise Value
We define Gross Merchandise Value ("GMV") as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and U.S. sales taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace, and as an indicator of the scale and growth of our online marketplace and the health of our ecosystem. Our historical performance for GMV may not be indicative of future performance in GMV.
Number of Orders
We define Number of Orders as the total number of orders placed or reported through the 1stDibs marketplace in a given month, minus cancellations within that month. Our historical performance for Number of Orders may not be indicative of future performance in Number of Orders.
Active Buyers
We define Active Buyers as buyers who have made at least one purchase through our online marketplace during the 12 months ended on the last day of the period presented, net of cancellations. A buyer is identified by a unique email address; thus an Active Buyer could have more than one account if they were to use a separate unique email address to set up each account. We believe this metric reflects scale, engagement and brand awareness, and our ability to convert user activity on our online marketplace into transactions. Our historical performance for Active Buyers may not be indicative of future performance in new Active Buyers.
1STDIBS.COM, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
December 31, 2024 December 31, 2023
------------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 25,964 $ 37,395
Short-term investments 77,919 101,926
Accounts receivable, net
of allowance for doubtful
accounts of $13 and $188
at December 31, 2024 and
December 31, 2023,
respectively 490 643
Prepaid expenses 2,859 3,032
Receivables from payment
processors 2,833 2,670
Other current assets 1,799 2,214
-------------- --------------
Total current assets 111,864 147,880
Restricted cash, non-current 3,657 3,580
Property and equipment, net 3,564 3,384
Operating lease right-of-use
assets 19,728 19,655
Goodwill 4,232 4,116
Other assets 2,713 2,200
-------------- --------------
Total assets $ 145,758 $ 180,815
============== ==============
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 2,228 $ 3,580
Payables due to sellers 8,605 6,521
Accrued expenses 11,475 10,883
Operating lease
liabilities, current 4,186 3,107
Other current liabilities 1,965 3,618
-------------- --------------
Total current
liabilities 28,459 27,709
Operating lease liabilities,
non-current 17,970 18,812
Other liabilities 24 6
-------------- --------------
Total liabilities 46,453 46,527
-------------- --------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par
value; 10,000,000 shares
authorized as of December
31, 2024 and December 31,
2023; zero shares issued
and outstanding as of
December 31, 2024 and
December 31, 2023 -- --
Common stock, $0.01 par
value; 400,000,000 shares
authorized as of December
31, 2024 and December 31,
2023; 42,271,388 and
40,738,619 shares issued
as of December 31, 2024
and December 31, 2023,
respectively; and
35,827,866 and 39,915,136
outstanding as of
December 31, 2024 and
December 31, 2023,
respectively 422 407
Treasury stock, at cost;
6,443,522 and 823,483
shares as of December 31,
2024 and December 31,
2023, respectively (31,618) (3,496)
Additional paid-in capital 463,224 451,282
Accumulated deficit (332,352) (313,719)
Accumulated other
comprehensive income
(loss) (371) (186)
-------------- --------------
Total stockholders'
equity 99,305 134,288
-------------- --------------
Total liabilities and
stockholders' equity $ 145,758 $ 180,815
============== ==============
1STDIBS.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Three Months Ended
December 31, Year Ended December 31,
-------------------------- ----------------------------
2024 2023 2024 2023
---------- ---------- ---------- ----------
Net revenue $ 22,770 $ 20,922 $ 88,257 $ 84,684
Cost of revenue 6,311 5,967 24,831 25,111
---------- ---------- ---------- ----------
Gross profit 16,459 14,955 63,426 59,573
Operating expenses:
Sales and marketing 10,504 8,633 38,084 36,640
Technology
development 5,479 4,445 21,165 21,644
General and
administrative 6,616 6,264 27,372 28,587
Provision for
transaction
losses 837 789 3,020 3,729
---------- ---------- ---------- ----------
Total operating
expenses 23,436 20,131 89,641 90,600
---------- ---------- ---------- ----------
Loss from
operations (6,977) (5,176) (26,215) (31,027)
---------- ---------- ---------- ----------
Other income, net:
Interest income 1,247 1,706 5,942 6,639
Other, net 556 543 1,684 1,703
---------- ---------- ---------- ----------
Total other
income, net 1,803 2,249 7,626 8,342
---------- ---------- ---------- ----------
Net loss before
income taxes (5,174) (2,927) (18,589) (22,685)
Provision for
income taxes (36) (14) (44) (14)
---------- ---------- ---------- ----------
Net loss $ (5,210) $ (2,941) $ (18,633) $ (22,699)
========== ========== ========== ==========
Net loss per
share--basic and
diluted $ (0.14) $ (0.07) $ (0.49) $ (0.57)
========== ========== ========== ==========
Weighted average
common shares
outstanding--basic
and diluted 36,327,939 39,953,131 37,820,400 39,724,697
========== ========== ========== ==========
1STDIBS.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
-----------------------------
2024 2023
--------- ---------
Cash flows from operating activities:
Net loss $ (18,633) $ (22,699)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,986 2,278
Stock-based compensation expense 14,776 12,363
Provision for transaction losses,
returns and refunds 1,080 875
Amortization of costs to obtain
revenue contracts 311 326
Amortization of operating lease
right-of-use assets 3,423 2,596
Accretion of discounts and
amortization of premiums on
short-term investments, net 41 (3,390)
Other, net (137) (318)
Changes in operating assets and
liabilities:
Accounts receivable (228) 59
Prepaid expenses and other
current assets 44 (1,469)
Receivables from payment
processors (163) (194)
Other assets (679) (2,136)
Accounts payable and accrued
expenses (1,723) 578
Payables due to sellers 2,083 (662)
Operating lease liabilities (3,259) (2,790)
Other current liabilities and
other liabilities (1,832) 1,027
--------- ---------
Net cash used in operating
activities (2,910) (13,556)
--------- ---------
Cash flows from investing activities:
Maturities of short-term investments 91,983 92,653
Sales of short-term investments 18,296 --
Purchases of short-term investments (86,368) (191,093)
Development of internal-use software (1,304) (1,706)
Purchases of property and equipment (618) (88)
Other, net 302 2
--------- ---------
Net cash provided by (used in)
investing activities 22,291 (100,232)
--------- ---------
Cash flows from financing activities:
Proceeds from exercise of stock options 817 353
Payments for repurchase of common stock (27,743) (3,374)
Payments for taxes related to net share
settlement of stock-based compensation
awards (3,780) (608)
--------- ---------
Net cash used in financing
activities (30,706) (3,629)
--------- ---------
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash (29) 349
Net decrease in cash, cash equivalents,
and restricted cash (11,354) (117,068)
Cash, cash equivalents, and restricted
cash at beginning of the period 40,975 158,043
--------- ---------
Cash, cash equivalents, and restricted
cash at end of the period $ 29,621 $ 40,975
========= =========
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
In this press release, we provide Adjusted EBITDA, a non-GAAP financial measure that represents our net loss adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; and (4) strategic alternative expenses. We also provide Adjusted EBITDA Margin, a non-GAAP financial measure that presents Adjusted EBITDA divided by net revenue. Below is a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA.
We have included Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures, because they are key measures used by our management team to help us to assess our operating performance and the operating leverage in our business. We also use these measures to analyze our financial results, establish budgets and operational goals for managing our business, and make strategic decisions. We believe that Adjusted EBITDA and Adjusted EBITDA Margin help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA and Adjusted EBITDA Margin. Accordingly, we believe that these metrics provide useful information to investors and others in understanding and evaluating our results of operations, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance.
The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. The non-GAAP financial measures presented should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP. Further, these non-GAAP financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. Accordingly, these non-GAAP financial measures should be considered as supplemental in nature, and are not intended, and should not be construed, as a substitute for the related financial information calculated in accordance with GAAP. These limitations of Adjusted EBITDA and Adjusted EBITDA Margin include the following:
--
The exclusion of certain recurring, non-cash charges, such as
depreciation and amortization of property and equipment. While these are
non-cash charges, we may need to replace the assets being depreciated in
the future and Adjusted EBITDA does not reflect cash requirements for
these replacements or new capital expenditure requirements;
--
The exclusion of stock-based compensation expense, which has been a
significant recurring expense and will continue to constitute a
significant recurring expense for the foreseeable future, as equity
awards are expected to continue to be an important component of our
compensation strategy;
--
The exclusion of other income, net, which includes interest income
related to our cash, cash equivalents and short-term investments and
realized and unrealized gains and losses on foreign currency exchange;
--
The exclusion of strategic alternative expenses in connection with
capital return strategies, buy- and sell-side mergers, acquisitions and
partnerships which include integration costs, sale of a business or
subsidiary, business optimization costs related to revisions of
operational objectives and priorities which include restructuring charges,
in all cases outside the ordinary course.
Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial performance measures, including net loss and our other GAAP results. The information in the tables below sets forth the non-GAAP financial measures along with the most directly comparable GAAP financial measures.
1STDIBS.COM, INC.
Reconciliation of Net Loss to Adjusted EBITDA
(Amounts in thousands)
(Unaudited)
Three Months Ended December
31, Year Ended December 31,
--------------------------- --------------------------
2024 2023 2024 2023
------------- ------------ ------------ ------------
Net loss $(5,210) $(2,941) $(18,633) $(22,699)
Excluding:
Depreciation
and
amortization 547 463 1,986 2,278
Stock-based
compensation
expense 3,768 3,023 14,776 12,363
Other income,
net (1,803) (2,249) (7,626) (8,342)
Provision for
income
taxes 36 14 44 14
Strategic
alternative
expenses 1,019 (15) 1,444 3,046
------ ---- ------ ------- -------
Adjusted EBITDA
(non-GAAP) $(1,643) $(1,705) $ (8,009) $(13,340)
====== === ====== ======= =======
Divided by:
------------- ------------ ------------ ------------
Net revenue $22,770 $20,922 $ 88,257 $ 84,684
------ ---- ------ --- ------- -------
Adjusted EBITDA
Margin
(non-GAAP) (7.2)% (8.1)% (9.1)% (15.8)%
====== ====== ======= =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20250228227916/en/
CONTACT: Media Contact:
Jennifer Miller
jennifer.miller@1stdibs.com
Investor Relations Contact:
Kevin LaBuz
investors@1stdibs.com
(END) Dow Jones Newswires
February 28, 2025 07:00 ET (12:00 GMT)
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