1stdibs.com, Inc. (NASDAQ: 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, 2023.
Fourth Quarter 2023 Financial Highlights
- Net revenue was $20.9 million, a
decrease of 9% year-over-year.
- Gross profit was $15.0 million, a
decrease of 8% year-over-year.
- Gross margin was 71.5%, compared to
70.5% in the fourth quarter 2022.
- GAAP net loss was $2.9 million
compared to a net loss of $6.9 million in the fourth quarter
2022.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(1.7) million and (8.1)%, respectively,
compared to $(4.5) million and (19.5)%, respectively, in the
fourth quarter 2022.
- Cash, cash equivalents and short-term
investments totaled $139.3 million as of December 31,
2023.
Full Year 2023 Financial Highlights
- Net revenue was $84.7 million, a
decrease of 13% year-over-year.
- Gross profit was $59.6 million, a
decrease of 11% year-over-year.
- Gross margin was 70.3%, compared to
69.4% in the year ended December 31, 2022.
- GAAP net loss was $22.7 million,
compared to $22.5 million in the year ended December 31,
2022.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(13.3) million and (15.8)%, respectively,
compared to $(20.7) million and (21.3)%, respectively, in the year
ended December 31, 2022.
“Throughout 2023, we laid the groundwork for future success,”
said David Rosenblatt, 1stDibs Chief Executive Officer. “Over the
past year we have reduced our cost structure, accelerated the path
to profitability, focused our roadmap on the highest-ROI projects
and begun returning capital to shareholders. Our efforts are
producing tangible results, including a return to conversion
growth.”
Tom Etergino, Chief Financial Officer of 1stDibs,said, “The
benefits of the actions we have taken to streamline our business
and re-engineer our cost structure over the past two years are on
display this quarter, with operating expenses down 19% and adjusted
EBITDA margins improved meaningfully. We have made significant
strides toward bettering our financial health, positioning
ourselves for sustainable growth and driving operating leverage
going forward.”
Other Recent Business Highlights and Fourth Quarter Key
Operating Metrics
- In November 2023, we entered into a
lease agreement, as the lessee, for approximately 13,000 square
feet for our new corporate headquarters in New York City, which
commenced during the first quarter of 2024, with a five-year term
and an initial seven-month rent abatement period.
- GMV was $86.4 million, a decrease
of 17% year-over-year.
- Number of Orders was approximately 34K,
a decrease of 11% year-over-year.
- Active Buyers was approximately 61K, a
decrease of 10% year-over-year.
Financial Guidance and Outlook
The Company’s first quarter 2024 guidance is below.
|
Q1 2024 Guidance |
GMV |
$83 million - $90 million |
Net revenue |
$20.6 million - $21.9 million |
Adjusted EBITDA margin
(non-GAAP) |
(13%) - (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 uncertainty regarding, and the
potential variability 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
full year 2023 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 reaccelerating
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, 2022 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. |
CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands, except share and per share
amounts) |
|
|
December 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
37,395 |
|
|
$ |
153,209 |
|
Short-term investments |
|
101,926 |
|
|
|
— |
|
Restricted cash, current |
|
— |
|
|
|
1,500 |
|
Accounts receivable, net of allowance for doubtful accounts of $188
and $113 at December 31, 2023 and December 31, 2022,
respectively |
|
643 |
|
|
|
972 |
|
Prepaid expenses |
|
3,032 |
|
|
|
3,506 |
|
Receivables from payment processors |
|
2,670 |
|
|
|
2,476 |
|
Other current assets |
|
2,214 |
|
|
|
800 |
|
Total current assets |
|
147,880 |
|
|
|
162,463 |
|
Restricted cash,
non-current |
|
3,580 |
|
|
|
3,334 |
|
Property and equipment,
net |
|
3,384 |
|
|
|
3,685 |
|
Operating lease right-of-use
assets |
|
19,655 |
|
|
|
21,990 |
|
Goodwill |
|
4,116 |
|
|
|
4,075 |
|
Other assets |
|
2,200 |
|
|
|
249 |
|
Total assets |
$ |
180,815 |
|
|
$ |
195,796 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
3,580 |
|
|
$ |
2,905 |
|
Payables due to sellers |
|
6,521 |
|
|
|
7,185 |
|
Accrued expenses |
|
10,883 |
|
|
|
10,761 |
|
Operating lease liabilities, current |
|
3,107 |
|
|
|
2,770 |
|
Other current liabilities |
|
3,618 |
|
|
|
2,429 |
|
Total current liabilities |
|
27,709 |
|
|
|
26,050 |
|
Operating lease liabilities,
non-current |
|
18,812 |
|
|
|
21,678 |
|
Other liabilities |
|
6 |
|
|
|
46 |
|
Total liabilities |
|
46,527 |
|
|
|
47,774 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized as
of December 31, 2023 and December 31, 2022; zero shares
issued and outstanding as of December 31, 2023 and
December 31, 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 400,000,000 shares authorized as of
December 31, 2023 and December 31, 2022; 40,738,619 and
39,260,193 shares issued as of December 31, 2023 and
December 31, 2022, respectively; and 39,915,136 and 39,260,193
outstanding as of December 31, 2023 and December 31,
2022, respectively |
|
407 |
|
|
|
393 |
|
Treasury stock, at cost; 823,483 and zero shares as of
December 31, 2023 and December 31, 2022,
respectively |
|
(3,496 |
) |
|
|
— |
|
Additional paid-in capital |
|
451,282 |
|
|
|
439,005 |
|
Accumulated deficit |
|
(313,719 |
) |
|
|
(291,020 |
) |
Accumulated other comprehensive loss |
|
(186 |
) |
|
|
(356 |
) |
Total stockholders’ equity |
|
134,288 |
|
|
|
148,022 |
|
Total liabilities and stockholders’ equity |
$ |
180,815 |
|
|
$ |
195,796 |
|
|
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, |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net revenue |
$ |
20,922 |
|
|
$ |
22,957 |
|
|
$ |
84,684 |
|
|
$ |
96,849 |
|
Cost of revenue |
|
5,967 |
|
|
|
6,762 |
|
|
|
25,111 |
|
|
|
29,670 |
|
Gross profit |
|
14,955 |
|
|
|
16,195 |
|
|
|
59,573 |
|
|
|
67,179 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
8,633 |
|
|
|
10,637 |
|
|
|
36,640 |
|
|
|
44,776 |
|
Technology development |
|
4,445 |
|
|
|
5,726 |
|
|
|
21,644 |
|
|
|
24,437 |
|
General and administrative |
|
6,264 |
|
|
|
6,959 |
|
|
|
28,587 |
|
|
|
27,594 |
|
Provision for transaction losses |
|
789 |
|
|
|
1,501 |
|
|
|
3,729 |
|
|
|
5,933 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
Total operating expenses |
|
20,131 |
|
|
|
24,823 |
|
|
|
90,600 |
|
|
|
93,056 |
|
Loss from operations |
|
(5,176 |
) |
|
|
(8,628 |
) |
|
|
(31,027 |
) |
|
|
(25,877 |
) |
Other income, net: |
|
|
|
|
|
|
|
Interest income |
|
1,706 |
|
|
|
860 |
|
|
|
6,639 |
|
|
|
1,606 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11 |
) |
Other, net |
|
543 |
|
|
|
944 |
|
|
|
1,703 |
|
|
|
1,781 |
|
Total other income, net |
|
2,249 |
|
|
|
1,804 |
|
|
|
8,342 |
|
|
|
3,376 |
|
Net loss before income taxes |
|
(2,927 |
) |
|
|
(6,824 |
) |
|
|
(22,685 |
) |
|
|
(22,501 |
) |
Provision for income taxes |
|
(14 |
) |
|
|
(37 |
) |
|
|
(14 |
) |
|
|
(37 |
) |
Net loss |
|
(2,941 |
) |
|
|
(6,861 |
) |
|
|
(22,699 |
) |
|
|
(22,538 |
) |
Net loss per share—basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.59 |
) |
Weighted average common shares outstanding—basic and diluted |
|
39,953,131 |
|
|
|
39,035,706 |
|
|
|
39,724,697 |
|
|
|
38,479,437 |
|
|
1STDIBS.COM, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Amounts in thousands) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(22,699 |
) |
|
$ |
(22,538 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
2,278 |
|
|
|
2,710 |
|
Stock-based compensation expense |
|
12,363 |
|
|
|
11,214 |
|
Provision for transaction losses, returns and refunds |
|
875 |
|
|
|
781 |
|
Amortization of costs to obtain revenue contracts |
|
326 |
|
|
|
310 |
|
Amortization of operating lease right-of-use assets |
|
2,596 |
|
|
|
2,541 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
(9,684 |
) |
Accretion of discounts and amortization of premiums on marketable
securities, net |
|
(3,390 |
) |
|
|
— |
|
Other, net |
|
(318 |
) |
|
|
195 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
59 |
|
|
|
(497 |
) |
Prepaid expenses and other current assets |
|
(1,469 |
) |
|
|
31 |
|
Receivables from payment processors |
|
(194 |
) |
|
|
(323 |
) |
Other assets |
|
(2,136 |
) |
|
|
(615 |
) |
Accounts payable and accrued expenses |
|
578 |
|
|
|
(5,206 |
) |
Payables due to sellers |
|
(662 |
) |
|
|
(3,041 |
) |
Operating lease liabilities |
|
(2,790 |
) |
|
|
(2,735 |
) |
Other current liabilities and other liabilities |
|
1,027 |
|
|
|
(1,057 |
) |
Net cash used in operating activities |
|
(13,556 |
) |
|
|
(27,914 |
) |
Cash flows from
investing activities: |
|
|
|
Purchases of short-term
investments |
|
(191,093 |
) |
|
|
— |
|
Maturities of short-term
investments |
|
92,653 |
|
|
|
— |
|
Development
of internal-use software |
|
(1,706 |
) |
|
|
(1,871 |
) |
Purchases of property and
equipment |
|
(88 |
) |
|
|
(93 |
) |
Proceeds from sale of Design
Manager |
|
— |
|
|
|
14,611 |
|
Other, net |
|
2 |
|
|
|
(6 |
) |
Net cash (used in) provided by investing activities |
|
(100,232 |
) |
|
|
12,641 |
|
Cash flows from
financing activities: |
|
|
|
Proceeds from exercise of
stock options |
|
353 |
|
|
|
2,035 |
|
Payments for repurchase of
common stock |
|
(3,374 |
) |
|
|
— |
|
Payments for taxes related to
net share settlement of stock-based compensation awards |
|
(608 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(3,629 |
) |
|
|
2,035 |
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash |
|
349 |
|
|
|
(278 |
) |
Net decrease in cash,
cash equivalents, and restricted cash |
|
(117,068 |
) |
|
|
(13,516 |
) |
Cash, cash equivalents, and
restricted cash at beginning of the period |
|
158,043 |
|
|
|
171,559 |
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
40,975 |
|
|
$ |
158,043 |
|
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; (4) provision for income taxes; (5)
gain on sale of business; and (6) 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 of property and equipment
and amortization of intangible assets. While these are non-cash
charges, we may need to replace the assets being depreciated and
amortized 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, interest expense, and
realized and unrealized gains and losses on foreign currency
exchange;
- The exclusion of gain on sale of Design
Manager, which is a one-time sale of our wholly owned subsidiary;
and
- 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 December 31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
$ |
(2,941 |
) |
|
$ |
(6,861 |
) |
|
$ |
(22,699 |
) |
|
$ |
(22,538 |
) |
Excluding: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
463 |
|
|
|
521 |
|
|
|
2,278 |
|
|
|
2,710 |
|
Stock-based compensation expense |
|
3,023 |
|
|
|
3,552 |
|
|
|
12,363 |
|
|
|
11,214 |
|
Other income, net |
|
(2,249 |
) |
|
|
(1,804 |
) |
|
|
(8,342 |
) |
|
|
(3,376 |
) |
Provision for income taxes |
|
14 |
|
|
|
37 |
|
|
|
14 |
|
|
|
37 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
Strategic alternative expenses |
|
(15 |
) |
|
|
80 |
|
|
|
3,046 |
|
|
|
967 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(1,705 |
) |
|
$ |
(4,475 |
) |
|
$ |
(13,340 |
) |
|
$ |
(20,670 |
) |
Divided by: |
|
|
|
|
|
|
|
Net revenue |
$ |
20,922 |
|
|
$ |
22,957 |
|
|
$ |
84,684 |
|
|
$ |
96,849 |
|
Adjusted EBITDA Margin
(non-GAAP) |
|
(8.1 |
)% |
|
|
(19.5 |
)% |
|
|
(15.8 |
)% |
|
|
(21.3 |
)% |
1stdibs com (NASDAQ:DIBS)
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From Apr 2024 to May 2024
1stdibs com (NASDAQ:DIBS)
Historical Stock Chart
From May 2023 to May 2024