1Stdibs.Com (DIBS) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 increased 3% year-over-year to $21.2 million, marking the second consecutive quarter of growth, driven by strategic initiatives to improve take rates and operational efficiency.

• Gross profit for Q3 2024 was $15.0 million with a gross margin of 71.0%, down from 73.3% in Q3 2023 due to higher shipping and payment processing costs.

• GAAP net loss widened to $5.7 million from $3.3 million in Q3 2023; Adjusted EBITDA was $(3.0) million, margin (14.1)%.

• Active buyers totaled approximately 62,500, down 1% year-over-year but up 2% sequentially; order volume grew 7%.

• Strategic focus included discontinuing auctions, retiring the Essential Seller Program, and launching a machine-learning-based pricing model.

Financial highlights

• GMV was $84.6 million, down 5% year-over-year; sequential GMV growth decelerated by 7 percentage points.

• Net revenue was $21.2 million, up 3% year-over-year.

• Adjusted EBITDA loss was $3.0 million (margin -14.1%), compared to a $1.8 million loss (margin -8.7%) last year.

• Gross profit was $15.0 million, down 1%, with gross margin at 71.0%, down from 73.3%.

• Net loss for Q3 2024 was $5.7 million (EPS $(0.15)), compared to $3.3 million (EPS $(0.08)) in Q3 2023.

Outlook and guidance

• Q4 2024 GMV guidance: $86 million–$93 million, flat to up 8% year-over-year.

• Q4 2024 net revenue guidance: $21.4 million–$22.7 million, up 2%–8%.

• Q4 2024 adjusted EBITDA margin (non-GAAP) expected between (17)% and (13)%.

• Guidance assumes continued soft demand in luxury housing and high-end discretionary markets, with additional headwinds from the U.S. election and a shorter holiday season.

• Management expects continued operating losses and negative cash flows from operations in the foreseeable future.