1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for
luxury design products ("1stDibs" or the "Company"), today reported
financial results for its first quarter ended March 31, 2024.
First Quarter 2024 Financial
Highlights
- Net revenue was $22.1 million, a
decrease of 1% year-over-year.
- Gross profit was $16.0 million, an
increase of 7% year-over-year.
- Gross margin was 72.5%, compared to
67.1% in the first quarter 2023.
- GAAP net loss was $3.3 million
compared to a net loss of $8.1 million in the first quarter
2023.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(1.8) million and (8.1)%, respectively,
compared to $(5.3) million and (23.7)%, respectively, in the
first quarter 2023.
- Cash, cash equivalents and short-term
investments totaled $134.2 million as of March 31,
2024.
“We are pleased to report that we have continued
to make progress against our key goals, with demand metrics
recovering across the board. The second consecutive quarter of
conversion rate improvement resulted in better GMV and order
growth,” said David Rosenblatt, 1stDibs Chief Executive Officer.
“We are encouraged that our product efforts are paying off and that
leading indicators of demand are picking up.”
Tom Etergino, Chief Financial Officer of 1stDibs
said, “Over the past two years, we have taken actions to build a
stronger financial foundation. In the first quarter we continued to
see the impact of these efforts on our P&L with improved take
rates, expanded gross margins, lower operating expenses and higher
Adjusted EBITDA Margins.”
Other Recent Business Highlights and
First Quarter Key Operating Metrics
- GMV was
$91.7 million, a decrease of 6% year-over-year.
- Number of Orders
was approximately 35K, consistent year-over-year.
- Active Buyers was
approximately 61K, a decrease of 9% year-over-year.
Financial Guidance and Outlook
The Company’s second quarter 2024 guidance is below.
|
Q2 2024 Guidance |
GMV |
$85 million - $92 million |
Net revenue |
$21.0 million - $22.3 million |
Adjusted EBITDA margin
(non-GAAP) |
(14%) - (9%) |
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 first
quarter 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.
Media Contact:
Jennifer Millerjennifer.miller@1stdibs.com
Investor Relations Contact:
Kevin LaBuzinvestors@1stdibs.com
Forward-Looking Statements
This press release contains "forward-looking
statements" and "forward-looking information" within the meaning of
applicable federal and state securities laws (collectively,
"forward-looking statements"). All statements in this press release
other than statements of historical fact 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 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; and (4) 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 following our workforce
reduction; 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. 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 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 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.CONDENSED CONSOLIDATED
BALANCE SHEETS(Amounts in thousands, except share
and per share amounts)(Unaudited)
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
33,730 |
|
|
$ |
37,395 |
|
Short-term investments |
|
100,511 |
|
|
|
101,926 |
|
Accounts receivable, net of allowance for doubtful accounts of $243
and $188 at March 31, 2024 and December 31, 2023,
respectively |
|
610 |
|
|
|
643 |
|
Prepaid expenses |
|
2,064 |
|
|
|
3,032 |
|
Receivables from payment processors |
|
3,448 |
|
|
|
2,670 |
|
Other current assets |
|
2,230 |
|
|
|
2,214 |
|
Total current assets |
|
142,593 |
|
|
|
147,880 |
|
Restricted cash, non-current |
|
3,600 |
|
|
|
3,580 |
|
Property and equipment,
net |
|
3,600 |
|
|
|
3,384 |
|
Operating lease right-of-use
assets |
|
22,338 |
|
|
|
19,655 |
|
Goodwill |
|
4,109 |
|
|
|
4,116 |
|
Other assets |
|
3,228 |
|
|
|
2,200 |
|
Total assets |
$ |
179,468 |
|
|
$ |
180,815 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,287 |
|
|
$ |
3,580 |
|
Payables due to sellers |
|
7,986 |
|
|
|
6,521 |
|
Accrued expenses |
|
9,525 |
|
|
|
10,883 |
|
Operating lease liabilities, current |
|
3,578 |
|
|
|
3,107 |
|
Other current liabilities |
|
3,952 |
|
|
|
3,618 |
|
Total current liabilities |
|
27,328 |
|
|
|
27,709 |
|
Operating lease liabilities,
non-current |
|
21,121 |
|
|
|
18,812 |
|
Other liabilities |
|
3 |
|
|
|
6 |
|
Total liabilities |
|
48,452 |
|
|
|
46,527 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized as
of March 31, 2024 and December 31, 2023; zero shares
issued and outstanding as of March 31, 2024 and
December 31, 2023 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 400,000,000 shares authorized as of
March 31, 2024 and December 31, 2023; 41,108,619 and
40,738,619 shares issued as of March 31, 2024 and
December 31, 2023, respectively; and 39,732,251 and 39,915,136
outstanding as of March 31, 2024 and December 31, 2023,
respectively |
|
411 |
|
|
|
407 |
|
Treasury stock, at cost; 1,376,368 and 823,483 shares as of
March 31, 2024 and December 31, 2023, respectively |
|
(6,411 |
) |
|
|
(3,496 |
) |
Additional paid-in capital |
|
454,432 |
|
|
|
451,282 |
|
Accumulated deficit |
|
(317,022 |
) |
|
|
(313,719 |
) |
Accumulated other comprehensive loss |
|
(394 |
) |
|
|
(186 |
) |
Total stockholders’ equity |
|
131,016 |
|
|
|
134,288 |
|
Total liabilities and stockholders’ equity |
$ |
179,468 |
|
|
$ |
180,815 |
|
|
1STDIBS.COM,
INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Amounts
in thousands, except share and per share
amounts)(Unaudited)
|
Three Months Ended March 31, |
2024 |
|
2023 |
Net revenue |
$ |
22,062 |
|
|
$ |
22,178 |
|
Cost of revenue |
|
6,076 |
|
|
|
7,307 |
|
Gross profit |
|
15,986 |
|
|
|
14,871 |
|
Operating expenses: |
|
|
|
Sales and marketing |
|
9,169 |
|
|
|
9,805 |
|
Technology development |
|
4,745 |
|
|
|
5,795 |
|
General and administrative |
|
7,010 |
|
|
|
8,088 |
|
Provision for transaction losses |
|
414 |
|
|
|
1,364 |
|
Total operating expenses |
|
21,338 |
|
|
|
25,052 |
|
Loss from operations |
|
(5,352 |
) |
|
|
(10,181 |
) |
Other income, net: |
|
|
|
Interest income |
|
1,692 |
|
|
|
1,531 |
|
Other, net |
|
357 |
|
|
|
517 |
|
Total other income, net |
|
2,049 |
|
|
|
2,048 |
|
Net loss before income taxes |
|
(3,303 |
) |
|
|
(8,133 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
Net loss |
|
(3,303 |
) |
|
|
(8,133 |
) |
Net loss per share—basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.21 |
) |
Weighted average common shares outstanding—basic and diluted |
|
39,745,095 |
|
|
|
39,330,542 |
|
|
1STDIBS.COM,
INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(Unaudited)
|
Three Months Ended March 31, |
|
2024 |
|
2023 |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(3,303 |
) |
|
$ |
(8,133 |
) |
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
462 |
|
|
|
939 |
|
Stock-based compensation expense |
|
3,090 |
|
|
|
3,106 |
|
Provision for transaction losses, returns and refunds |
|
434 |
|
|
|
346 |
|
Amortization of costs to obtain revenue contracts |
|
81 |
|
|
|
79 |
|
Amortization of operating lease right-of-use assets |
|
802 |
|
|
|
629 |
|
Accretion of discounts and amortization of premiums on short-term
investments, net |
|
(861 |
) |
|
|
(354 |
) |
Other, net |
|
47 |
|
|
|
(112 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(56 |
) |
|
|
29 |
|
Prepaid expenses and other current assets |
|
1,002 |
|
|
|
1,269 |
|
Receivables from payment processors |
|
(778 |
) |
|
|
(250 |
) |
Other assets |
|
(1,217 |
) |
|
|
(181 |
) |
Accounts payable and accrued expenses |
|
(2,939 |
) |
|
|
(71 |
) |
Payables due to sellers |
|
1,464 |
|
|
|
(134 |
) |
Operating lease liabilities |
|
(703 |
) |
|
|
(678 |
) |
Other current liabilities and other liabilities |
|
(586 |
) |
|
|
715 |
|
Net cash used in operating activities |
|
(3,061 |
) |
|
|
(2,801 |
) |
Cash flows from investing
activities: |
|
|
|
Maturities of short-term
investments |
|
31,577 |
|
|
|
— |
|
Purchases of short-term
investments |
|
(29,492 |
) |
|
|
(62,370 |
) |
Development
of internal-use software |
|
(451 |
) |
|
|
(370 |
) |
Purchases of property and
equipment |
|
(196 |
) |
|
|
(20 |
) |
Net cash provided by (used in) investing activities |
|
1,438 |
|
|
|
(62,760 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from exercise of stock
options |
|
703 |
|
|
|
31 |
|
Payments for repurchase of common
stock |
|
(2,669 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(1,966 |
) |
|
|
31 |
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted
cash |
|
(56 |
) |
|
|
113 |
|
Net decrease in cash,
cash equivalents, and restricted cash |
|
(3,645 |
) |
|
|
(65,417 |
) |
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 |
$ |
37,330 |
|
|
$ |
92,626 |
|
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 condensed 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, sale of a business or subsidiary, business
optimization costs related to revisions of operational objectives
and priorities, cost saving initiatives related to restructuring
charges and integration costs, 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 March 31, |
|
2024 |
|
2023 |
Net loss |
$ |
(3,303 |
) |
|
$ |
(8,133 |
) |
Excluding: |
|
|
|
Depreciation and amortization |
|
462 |
|
|
|
939 |
|
Stock-based compensation expense |
|
3,090 |
|
|
|
3,106 |
|
Other income, net |
|
(2,049 |
) |
|
|
(2,048 |
) |
Strategic alternative expenses |
|
6 |
|
|
|
882 |
|
Adjusted EBITDA (non-GAAP) |
$ |
(1,794 |
) |
|
$ |
(5,254 |
) |
Divided by: |
|
|
|
Net revenue |
$ |
22,062 |
|
|
$ |
22,178 |
|
Adjusted EBITDA Margin
(non-GAAP) |
|
(8.1 |
)% |
|
|
(23.7 |
)% |
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