1Stdibs.Com (DIBS) investor relations material

Business overview and evolution

• Operates a curated digital luxury marketplace for unique vintage, antique, and contemporary items, with over $3 billion in cumulative sales and an average order value above $2,500, significantly higher than most luxury marketplaces.

• Transitioned from an antiques-only listings business to a global e-commerce platform, expanding into jewelry, art, and fashion, now representing 40% of GMV outside furniture.

• Half of sellers are now international, and about 20% of sales come from buyers outside the U.S.

• Maintains an asset-light, two-sided marketplace model with 6,000 rigorously vetted professional sellers and a buyer base split between high-net-worth consumers and interior designers.

• Went public in June 2021 and has since focused on increasing efficiency and expanding its global footprint.

Financial performance and operating model

• Achieved approximately $360 million in GMV and $90 million in revenue annually for the past two years, with gross margins in the mid-70% and contribution margins in the mid-60%.

• Adjusted EBITDA turned positive as of Q4 last year, with expectations to remain EBITDA positive and achieve free cash flow positivity for the full year 2026.

• Reduced paid advertising by 50%, resulting in 75% of demand now generated organically.

• Reallocated headcount from sales and marketing to product engineering to drive durable top-line growth through product innovation.

• The marketplace lists about two million items, representing $10 billion in product value.

Strategic initiatives and growth levers

• Focused on expanding beyond furniture to increase purchase frequency and total addressable market, leveraging the trust and exclusivity of its curated supply.

• Enhanced search capabilities, including natural language and AI-driven search, reduced null search results by 24% in Q1.

• Lowered shipping costs for furniture by 30-40% in Q1, addressing a major friction point for buyers.

• Prioritizes organic growth through product improvements rather than paid marketing.

• Expects to resume top-line growth by year-end, driven by improved purchase experience and market recovery.