1stDibs (DIBS, Financial) reported first-quarter revenue reaching $22.54 million, slightly surpassing the market consensus of $22.35 million. The company's CEO, David Rosenblatt, highlighted the continuation of positive momentum, citing effective execution and market share expansion as key contributors to this performance. Despite the uncertainty in the broader economic landscape, Rosenblatt expressed confidence that 1stDibs' strategic approach and business model are well-suited to navigate future challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for 1stdibs.com Inc (DIBS, Financial) is $8.00 with a high estimate of $8.00 and a low estimate of $8.00. The average target implies an upside of 199.63% from the current price of $2.67. More detailed estimate data can be found on the 1stdibs.com Inc (DIBS) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, 1stdibs.com Inc's (DIBS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for 1stdibs.com Inc (DIBS, Financial) in one year is $5.14, suggesting a upside of 92.51% from the current price of $2.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the 1stdibs.com Inc (DIBS) Summary page.
DIBS Key Business Developments
Release Date: February 28, 2025
- GMV (Gross Merchandise Value): $94.5 million, up 9% year over year.
- Net Revenue: $22.8 million, up 9% year over year.
- Gross Profit: $16.5 million, up 10% year over year.
- Gross Margin: 72%, up approximately 1 percentage point.
- Adjusted EBITDA Loss: $1.6 million, a 1 percentage point improvement year over year.
- Average Order Value: Approximately $2,600, up 2% year over year.
- Median Order Value: Approximately $1,200, up 4% year over year.
- Active Buyers: Approximately 64,300, up 6% year over year.
- Unique Sellers: Approximately 5,900, down 24% year over year.
- Listings: Over 1.8 million, up 5% year over year.
- Cash and Equivalents: $104 million at the end of the quarter.
- Share Repurchases: Approximately 5.6 million shares for $28.1 million in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 1stdibs.com Inc (DIBS, Financial) exceeded its guidance and achieved its highest GMV growth since 2021, with a 9% increase in the fourth quarter.
- The company successfully reduced operating expenses for the second consecutive year, leading to improved adjusted EBITDA margins.
- 1stdibs.com Inc (DIBS) saw a rebound in average order value, which increased by 2%, and median order value, which increased by 4%.
- The company made significant progress in conversion rates, which have increased year over year for five straight quarters.
- 1stdibs.com Inc (DIBS) repurchased approximately 5.6 million shares in 2024, indicating confidence in the company's intrinsic value and future prospects.
Negative Points
- The luxury home furnishings market remains weak, with US home sales nearing a 30-year low, impacting overall demand.
- Seller churn was elevated due to the retirement of the essential seller program, resulting in a 24% decrease in unique sellers.
- Despite improvements, the company still faces challenges in achieving positive adjusted EBITDA, with a loss of $1.6 million in the fourth quarter.
- Traffic declines continued, although they moderated, with 70% of traffic coming from organic sources and 30% from paid sources.
- The company anticipates continued softness in the luxury housing and high-end discretionary markets, affecting future growth prospects.
