Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 1stdibs.com Inc (DIBS, Financial) exceeded the midpoint of guidance for GMV and revenue, and adjusted EBITDA margins exceeded the high end.
- The company achieved a 3% GMV growth, driven by improvements in on-platform average order value (AOV).
- 1stdibs.com Inc (DIBS) reported a 10% higher conversion rate compared to the first quarter of 2023, marking the sixth consecutive period of year-over-year conversion rate growth.
- The company successfully launched machine learning-based pricing models across all verticals, enhancing pricing transparency and building buyer trust.
- 1stdibs.com Inc (DIBS) experienced steady listings growth, ending the quarter with over 1.8 million listings, up 5% year-over-year.
Negative Points
- The company faced a tougher demand backdrop for luxury home discretionary spending due to evolving trade policies and broader macroeconomic effects.
- Traffic softened slightly, with improvements in organic traffic being offset by slower paid traffic growth.
- Unique seller accounts decreased by 23% year-over-year, although they remained flat sequentially.
- The company experienced a significant drop-off in conversion rates from March to April, primarily affecting the consumer furniture business.
- Provision for transaction losses increased to approximately 4% of revenue, up from 2% in the previous year.
Q & A Highlights
Q: Can you discuss the recent trends in organic traffic and conversion rates, and how you plan to maintain these metrics moving forward?
A: David Rosenblatt, CEO: We restored organic traffic growth in Q1 after a year of decline, driven by product and engineering efforts. We aim to continue this growth throughout the year. Conversion rates have been stable, but we saw a drop in April, primarily in the consumer furniture segment. We believe this is due to macroeconomic changes, and we remain focused on long-term value drivers.
Q: You mentioned churn normalizing in Q2. Can you provide more context on this?
A: David Rosenblatt, CEO: Yes, churn is normalizing as we have moved past changes in our subscription pricing plan. Listings grew by 5% in Q1, and we expect to continue adding new sellers at historical levels.
Q: What are the sources of growth in active buyers, and is this trend sustainable?
A: David Rosenblatt, CEO: The growth in active buyers is directly linked to improvements in conversion rates, which is our primary focus. While macroeconomic factors have impacted conversion recently, we are committed to maintaining our current strategies and adapting to changes in the macro environment.
Q: Can you elaborate on the market share gains you mentioned?
A: David Rosenblatt, CEO: We measure market share by comparing our GMV changes to syndicated credit card data for online and luxury furniture markets. We have grown market share for five consecutive quarters, driven by our consistent product development strategy.
Q: Could you provide more details on the machine learning (ML) pricing models and their impact?
A: David Rosenblatt, CEO: Our ML pricing models are now available across all categories. Adoption is high for items priced below $9,000 but lower for higher-priced items due to fewer data points. We are also applying ML to calculate shipping prices, which should increase pre-quote coverage and improve conversion rates.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
