1Stdibs.Com (DIBS) investor relations material

Business overview and evolution

• Operates a two-sided marketplace for unique, luxury design items, with over $3B in transactions and 1M+ orders since 2001.

• Originally focused on the Paris flea market, expanded to New York and diversified into furniture, jewelry, art, and vintage fashion.

• 6,000 vetted professional sellers list 2M items; 70% of demand is from consumers, 30% from interior designers.

• Revenue is 75% commission-based, with the remainder from advertising, subscriptions, and listing fees.

• Business model shifted in 2016 from listings to a transactional marketplace, driving GMV to a $350M–$400M run rate.

Growth drivers and market positioning

• Geographic expansion has led to 50% of sellers and 30% of traffic coming from outside the US.

• Category expansion includes jewelry (now 20% of gross sales), art, and vintage fashion.

• Maintains an asset-light model with no owned inventory; sellers handle shipping and fulfillment.

• High gross margin (70%+) and contribution margin (approaching 60%) with an AOV over $2,500.

• Large market opportunity exists in luxury furniture, jewelry, and art, with most transactions still offline.

Technology, efficiency, and future plans

• AI and machine learning are used for pricing recommendations, personalization, and scalable customer service.

• High operating leverage and ongoing cost structure optimization are priorities for achieving profitability.

• Advertising is a key future revenue lever, leveraging a unique audience of luxury buyers.

• Social media, especially video platforms, will be prioritized to expand brand awareness beyond core categories.

• Confident in reaching breakeven through cost management and incremental high-margin revenue, even without significant GMV growth.