Q1 2024 1stdibs.Com Inc Earnings Call Transcript
Key Points
- 1stdibs.com Inc (DIBS) reported GMV and revenue above the high end of guidance, with adjusted EBITDA margins also at the high end of guidance.
- The company has seen seven consecutive quarters of conversion improvement, demonstrating effective strategies in increasing conversion rates for both new and returning buyers.
- Operational efficiencies have led to a leaner cost structure, contributing to substantial improvements in adjusted EBITDA margins.
- 1stdibs.com Inc (DIBS) has successfully implemented logistics optimizations, such as negotiating lower shipping rates and expanding European freight coverage, which have positively impacted conversion rates.
- The company has a strong cash position with $134 million in cash, cash equivalents, and short-term investments, providing substantial financial stability.
- Despite improvements, GMV was down 6% year-over-year, indicating ongoing challenges in the luxury home goods and high-end discretionary items market.
- Traffic and average order value were identified as headwinds to GMV growth, with organic traffic growth remaining down year-over-year.
- The company experienced a modest decline in the number of unique sellers due to higher churn, related to recent policy changes.
- Net revenue decreased by 1% year-over-year, reflecting the challenges in fully offsetting the declines in GMV.
- While there has been progress in restructuring and cost reduction, the company still reported an adjusted EBITDA loss of $1.8 million, indicating ongoing profitability challenges.
Thank you for standing by, and welcome to the 1stdibs First Quarter 2024 earnings conference call. (Operator Instructions) I'd now like to turn the call over to your host, Kevin abuzz, Head of Investor Relations and Corporate Development. You may begin.
Good morning, and welcome to first dibs Earnings Call for the Quarter Ended March 31st, 2024. I am Kevin LaBuz, Head of Investor Relations and Corporate Development. Joining me today are Chief Executive Officer, David Rosenblatt, and Chief Financial Officer, Thomas Etergino. David will provide an update on our business, including our strategy and growth opportunities, and Tom will review our first quarter results and second quarter outlook. This call will be available via webcast on our Investor Relations website at investors dot firstdata.com. Before we begin, please keep in mind that our remarks include forward-looking statements, including but not limited to, statements regarding guidance and future financial performance, market demand, growth prospects business plans,
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