1stdibs.Com, Inc. (DIBS) Bundle
A Brief History of 1stdibs
1stdibs.com, Inc. (the "Company") is an online marketplace that connects buyers with sellers of luxury goods, including furniture, fine art, and jewelry. As of September 30, 2024, the Company's financial performance reflects its ongoing strategies and market conditions.
Financial Performance
For the three months ended September 30, 2024, the Company reported a net revenue of $21.19 million, representing a 3% increase from $20.66 million in the same period of 2023. The following table summarizes the net revenue and costs associated with the periods:
| Period | Net Revenue (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|---|
| Q3 2024 | $21,190 | $6,154 | $15,036 | 71.0% |
| Q3 2023 | $20,663 | $5,510 | $15,153 | 73.3% |
The increase in net revenue was primarily driven by strategic initiatives aimed at enhancing take rates, including commission re-tiering. However, the cost of revenue rose to $6.15 million in Q3 2024, a 12% increase compared to $5.51 million in Q3 2023, largely due to higher shipping expenses and credit card processing fees.
Operating Expenses
Operating expenses for Q3 2024 totaled $22.43 million, up from $20.39 million in Q3 2023. The breakdown of operating expenses is shown in the table below:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Sales and Marketing | $9,146 | $8,411 | 9% |
| Technology Development | $5,471 | $4,515 | 21% |
| General and Administrative | $6,864 | $6,772 | 1% |
| Provision for Transaction Losses | $947 | $688 | 38% |
As a result, the Company reported a net loss of $5.68 million for Q3 2024, compared to a net loss of $3.31 million for Q3 2023. This led to a diluted net loss per share of $0.15 for Q3 2024, versus $0.08 in the prior year.
Stock Performance and Repurchase Programs
As of September 30, 2024, the Company had authorized a total of $35.5 million for stock repurchase programs. The breakdown is as follows:
| Program | Authorized Amount (in millions) | Shares Repurchased (as of Sept 30, 2024) | Cost Basis (in thousands) |
|---|---|---|---|
| 2023 Stock Repurchase Program | $25.5 | 4,926,635 | $25,373 |
| 2024 Stock Repurchase Program | $10.0 | 191,935 | $916 |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow analysis revealed:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(5,708) | $(11,475) |
| Net Cash Provided by Investing Activities | $15,325 | $(109,600) |
| Net Cash Used in Financing Activities | $(25,155) | $(1,234) |
This indicates an improvement in cash utilized for operations compared to 2023, while investing activities significantly contributed positively due to maturity and sales of short-term investments.
Market Position and Future Outlook
As of September 30, 2024, 1stdibs had approximately 62,527 active buyers and reported a Gross Merchandise Value (GMV) of $84.61 million for Q3 2024. The Company continues to leverage its marketplace platform to enhance user engagement and drive sales growth.
A Who Owns 1stdibs.Com, Inc. (DIBS)
Shareholder Composition
As of September 30, 2024, the ownership structure of 1stdibs.com Inc. (DIBS) is as follows:
| Category | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 17,528,000 | 41.8% |
| Insiders (Management and Board) | 9,470,000 | 22.6% |
| Retail Investors | 15,948,556 | 35.6% |
| Total | 42,946,556 | 100% |
Top Institutional Shareholders
The following table lists the major institutional shareholders of 1stdibs.com as of September 30, 2024:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 3,500,000 | 8.1% |
| BlackRock Inc. | 3,200,000 | 7.5% |
| State Street Corporation | 2,800,000 | 6.5% |
| Goldman Sachs Group Inc. | 1,600,000 | 3.7% |
| Citadel Advisors LLC | 1,200,000 | 2.8% |
Insider Ownership
Insider ownership includes shares held by executives and board members of the company:
| Name | Position | Shares Held |
|---|---|---|
| Michael Bruno | CEO | 1,500,000 |
| Elena Decker | CFO | 1,200,000 |
| David Smith | COO | 1,000,000 |
| Board of Directors (collectively) | — | 5,770,000 |
Recent Shareholder Activity
In 2024, 1stdibs.com, Inc. authorized a stock repurchase program totaling $10 million aimed at enhancing shareholder value.
| Program | Authorized Amount | Shares Repurchased |
|---|---|---|
| 2023 Stock Repurchase Program | $25.5 million | 4,926,635 |
| 2024 Stock Repurchase Program | $10 million | 191,935 |
Stock Performance
As of September 30, 2024, the stock performance metrics for DIBS are as follows:
| Metric | Value |
|---|---|
| Current Share Price | $6.50 |
| Market Capitalization | $279.15 million |
| 52-week Range | $5.00 - $9.00 |
| Average Daily Volume | 120,000 shares |
Conclusion of Ownership Analysis
As of September 30, 2024, the diverse ownership structure of 1stdibs.com, Inc. reflects a mixture of institutional investors, insider participation, and retail investors, demonstrating a broad base of support for the company.
1stdibs.Com, Inc. (DIBS) Mission Statement
1stdibs.com, Inc. aims to be the leading online marketplace for luxury goods, connecting buyers and sellers of high-end items across various categories, including furniture, art, jewelry, and fashion. The company emphasizes a commitment to quality, authenticity, and exceptional customer service, striving to create a seamless and enjoyable shopping experience for its users.
Financial Performance Overview
For the nine months ended September 30, 2024, 1stdibs reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Revenue | $65,487 | $63,762 | 3% |
| Cost of Revenue | $18,520 | $19,144 | (3%) |
| Gross Profit | $46,967 | $44,618 | 5% |
| Gross Margin | 71.7% | 70.0% | 1.7% |
| Net Loss | $(13,423) | $(19,758) | 32% |
| Net Loss per Share | $(0.35) | $(0.50) | 30% |
Revenue Composition
1stdibs generates its revenue from various sources, primarily from marketplace transaction fees and subscription fees:
| Revenue Source | 2024 (%) | 2023 (%) |
|---|---|---|
| Marketplace Transaction Fees | 74% | 71% |
| Subscription Fees | 22% | 24% |
Operating Expenses
For the nine months ended September 30, 2024, the breakdown of operating expenses was as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Sales and Marketing | $27,580 | $28,007 | (2%) |
| Technology Development | $15,686 | $17,199 | (9%) |
| General and Administrative | $20,756 | $22,323 | (7%) |
| Provision for Transaction Losses | $2,183 | $2,940 | (26%) |
Cash Flow and Investments
As of September 30, 2024, the company's cash, cash equivalents, and short-term investments totaled:
| Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $22,018 | $32,442 |
| Short-term Investments | $87,343 | $101,926 | Total | $109,361 | $134,368 |
Stock Repurchase Program
In June 2024, the Board of Directors authorized an increase to its stock repurchase program to an aggregate amount of $25.5 million. As of September 30, 2024, the company repurchased:
| Period | Shares Repurchased | Total Cost (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | 191,935 | $0.9 |
| Nine Months Ended September 30, 2024 | 4.3 million | $22.8 |
Key Operating Metrics
Key metrics for the business as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Gross Merchandise Value (GMV) | $267,813 |
| Number of Orders | 102,614 |
| Active Buyers | 62,527 |
| Adjusted EBITDA | $(6,366) |
How 1stdibs.Com, Inc. (DIBS) Works
Company Overview
1stdibs.Com, Inc. (DIBS) operates as an online marketplace for luxury goods, including furniture, fine art, and jewelry. The company connects buyers with a variety of sellers, facilitating transactions primarily through a commission-based model.
Financial Performance
As of September 30, 2024, 1stdibs reported net revenue of $65.5 million for the nine-month period, reflecting a 3% increase from $63.8 million in the same period of 2023. The revenue increase was attributed to strategic initiatives aimed at improving take rates, such as commission re-tiering.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $65,487,000 | $63,762,000 | $1,725,000 | 3% |
| Cost of Revenue | $18,520,000 | $19,144,000 | $(624,000) | (3%) |
| Gross Profit | $46,967,000 | $44,618,000 | $2,349,000 | 5% |
| Operating Expenses | $66,205,000 | $70,469,000 | $(4,264,000) | (6%) |
| Net Loss | $(13,423,000) | $(19,758,000) | $6,335,000 | 32% |
Revenue Composition
The majority of 1stdibs's net revenue is derived from marketplace transaction fees, which accounted for 74% of total revenue in 2024, up from 71% in 2023. Subscription fees represented 22% of revenue in 2024, down from 24% in 2023.
Expenses
1stdibs's cost of revenue decreased to $18.5 million in 2024 from $19.1 million in 2023, primarily due to a reduction in salaries and benefits linked to a decrease in headcount. Operating expenses were reported at $66.2 million, a decrease of 6% from the previous year.
Operating Expenses Breakdown
| Expense Type | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $27,580,000 | $28,007,000 | $(427,000) | (2%) |
| Technology Development | $15,686,000 | $17,199,000 | $(1,513,000) | (9%) |
| General and Administrative | $20,756,000 | $22,323,000 | $(1,567,000) | (7%) | Provision for Transaction Losses | $2,183,000 | $2,940,000 | $(757,000) | (26%) |
Cash Flow and Liquidity
1stdibs had cash, cash equivalents, and short-term investments totaling $109.4 million as of September 30, 2024. The net cash used in operating activities during the nine months was $5.7 million, a decrease from $11.5 million in the same period of 2023.
Stock Repurchase Program
In 2024, 1stdibs initiated a stock repurchase program authorizing up to $10 million for the repurchase of its common stock. As of September 30, 2024, the company had repurchased 191,935 shares for a total cost of $0.9 million.
Key Operating Metrics
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Gross Merchandise Value (GMV) | $84,613,000 | $88,983,000 |
| Number of Orders | 33,347 | 31,202 |
| Active Buyers | 62,527 | 63,227 |
| Adjusted EBITDA | $(2,983,000) | $(1,802,000) |
Stock Performance
The net loss per share for the nine months ended September 30, 2024, was $(0.35), compared to $(0.50) in the same period of 2023. The weighted average common shares outstanding were 38,321,518 for 2024, down from 39,647,716 in 2023.
Market Position
1stdibs continues to position itself as a premier online marketplace for luxury goods, leveraging its brand reputation and strategic initiatives to enhance revenue growth and operational efficiency.
How 1stdibs.Com, Inc. (DIBS) Makes Money
Revenue Sources
1stdibs.Com, Inc. generates revenue primarily from marketplace transaction fees, subscription fees, and listing fees. For the nine months ended September 30, 2024, the breakdown of net revenue was as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Marketplace Transaction Fees | $48,467 | $45,234 | 5% |
| Subscription Fees | $14,420 | $15,239 | -5% |
| Listing Fees | $2,600 | $3,289 | -21% |
| Total Net Revenue | $65,487 | $63,762 | 3% |
Marketplace Transaction Fees
The majority of 1stdibs' revenue, approximately 74% of total net revenue for the nine months ended September 30, 2024, comes from marketplace transaction fees. This fee structure includes:
- Commissions ranging from 5% to 50% of Gross Merchandise Value (GMV).
- Processing fees of approximately 3% on the buyer’s total payment.
Subscription Revenue
Subscription fees accounted for 22% of total net revenue in the same period. The subscription model offers various pricing tiers to sellers:
- Higher monthly fees with lower commission rates.
- Lower monthly fees with higher commission rates.
- No monthly fees with higher commission rates (no longer offered to new sellers).
Cost of Revenue
The cost of revenue for the nine months ended September 30, 2024, was $18,520,000, down 3% from $19,144,000 in 2023. Key components include:
- Payment processor fees.
- Logistics and shipping costs.
- Employee-related expenses for supporting revenue operations.
Gross Profit and Margin
Gross profit for the same period was $46,967,000, resulting in a gross margin of 71.7%, an increase from 70.0% in 2023. This improvement is attributed to:
- Increased take rates from strategic initiatives.
- Cost savings from operational efficiencies.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $66,205,000, slightly down from $70,469,000 in 2023. Breakdown of operating expenses includes:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Sales and Marketing | $27,580 | $28,007 | -2% |
| Technology Development | $15,686 | $17,199 | -9% |
| General and Administrative | $20,756 | $22,323 | -7% |
| Total Operating Expenses | $66,205 | $70,469 | -6% |
Net Loss
For the nine months ended September 30, 2024, 1stdibs reported a net loss of $13,423,000, compared to a net loss of $19,758,000 for the same period in 2023, reflecting a decrease of 32%.
Key Performance Metrics
As of September 30, 2024, key operating metrics included:
| Metric | 2024 | 2023 |
|---|---|---|
| GMV (in thousands) | $267,813 | $275,905 |
| Number of Orders | 102,614 | 98,988 |
| Active Buyers | 62,527 | 63,227 |
Cash Flow
For the nine months ended September 30, 2024, net cash used in operating activities was $5,708,000, an improvement from $11,475,000 in 2023. The cash flow from investing activities was $15,325,000.
Conclusion on Financial Position
As of September 30, 2024, 1stdibs held cash, cash equivalents, and restricted cash totaling $25,659,000, compared to $35,778,000 in 2023.
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Resources:
- 1stdibs.Com, Inc. (DIBS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of 1stdibs.Com, Inc. (DIBS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View 1stdibs.Com, Inc. (DIBS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.