1Stdibs.Com (DIBS) Q2 2024 earnings summary

Executive summary

• Net revenue increased 6% year-over-year to $22.2 million for Q2 2024, driven by higher GMV and improved take rates from commission re-tiering.

• GMV reached $91.5 million, up 2% year-over-year, with order volume up 5% and sequential increases in active buyers and order growth.

• Gross profit rose 9% to $15.9 million, with gross margin improving to 71.7% from 69.8% year-over-year.

• Adjusted EBITDA loss improved to $1.6 million from $4.6 million, with margin improving to -7% from -22%.

• Completed a share repurchase program, buying back up to $25.5 million and 4.9 million shares in H1 2024.

Financial highlights

• Q2 2024 net revenue: $22.2M (+6% YoY); gross profit: $15.9M (+9% YoY); gross margin: 71.7%.

• Q2 2024 net loss: $4.4M (improved from $8.3M loss YoY); Adjusted EBITDA: $(1.6)M (vs. $(4.6)M YoY).

• Cash, cash equivalents, and short-term investments: $110.6M as of June 30, 2024.

• Operating expenses declined 10% year-over-year due to cost-saving initiatives.

• Orders over $100,000 accounted for 4% of GMV, in line with historical range.

Outlook and guidance

• Q3 2024 GMV guidance: $84M–$91M; net revenue: $20.8M–$22.1M; Adjusted EBITDA margin: -15% to -10%.

• Management expects continued operating losses and negative cash flows as investments in growth persist.

• Current liquidity is expected to fund operations and capital expenditures for at least the next 12 months.

• Expect continued conversion rate improvements and order growth, with AOV pressures normalizing in Q4.