1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for
luxury design products ("1stDibs" or the "Company"), today reported
financial results for its third quarter ended September 30,
2023.
Third Quarter 2023 Financial Highlights
- Net revenue was $20.7 million, a
decrease of 9% year-over-year.
- Gross profit was $15.2 million, a
decrease of 2% year-over-year.
- Gross margin was 73.3%, compared to
68.0% in the third quarter 2022.
- GAAP net loss was $3.3 million
compared to a net loss of $9.0 million in the third quarter
2022.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(1.8) million and (8.7)%, respectively,
compared to $(5.5) million and (24.0)%, respectively, in the
third quarter 2022.
- Cash, cash equivalents and short-term
investments totaled $143.0 million as of September 30,
2023.
“While softness in the luxury housing market weighs on business,
our recent actions have put us in a strong competitive position for
when demand rebounds,” said David Rosenblatt, 1stDibs Chief
Executive Officer. “We’ve reduced our cost structure, increased our
testing velocity, and are focused on a small number of projects
with the highest potential for solid returns.”
Tom Etergino, Chief Financial Officer of 1stDibs said, “Over the
past year we have made significant efforts to reengineer our cost
structure and streamline our operations. The payoff showed up in
the third quarter, with operating expenses down 20% year-over-year
and adjusted EBITDA margins improving 15 percentage points
year-over-year. Our strong balance sheet and low cash burn give us
confidence that we will successfully navigate the choppy demand
environment.”
Other Recent Business Highlights and Third Quarter Key
Operating Metrics
- In November 2023, we entered into a
lease agreement, as the lessee, for 13,671 square feet for a new
office space in New York City which is expected to have a
commencement date of January 15, 2024 with a five year term and an
initial seven month rent abatement period.
- In August 2023, we entered into a
sublease agreement as the sublessor for our office space in our New
York City headquarters which will commence on October 1, 2023 for
approximately 78% of the rentable square feet and expand to 100% of
the rentable square feet on January 15, 2024. The sublease
agreement ends on December 31, 2029.
- In August 2023, 1stDibs' Board of
Directors approved a new stock repurchase program authorizing the
Company to repurchase up to $20.0 million of its common stock. As
of September 30, 2023, the Company repurchased 334,959 shares of
common stock for a total of $1.4 million.
- GMV was $89.0 million, a decrease
of 10% year-over-year.
- Number of Orders was approximately 31K,
a decrease of 11% year-over-year.
- Active Buyers was approximately 63K, a
decrease of 7% year-over-year.
Financial Guidance and Outlook
The Company’s fourth quarter 2023 guidance is below.
|
Q4 2023 Guidance |
GMV |
$83 million - $90 million |
Net revenue |
$19.7 million - $20.8 million |
Adjusted EBITDA margin
(non-GAAP) |
(13%) - (8%) |
|
Actual results may differ materially from our Financial Guidance
and Outlook as a result of, among other things, the factors
described under “Forward-Looking Statements” below.
A GAAP reconciliation to our non-GAAP guidance measure (adjusted
EBITDA) is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, expenses that may be incurred in the
future. Stock-based compensation expense is impacted by the timing
of employee stock transactions, the future fair market value of our
common stock, and our future hiring and retention needs, all of
which are difficult to predict and subject to change. We have
provided a reconciliation of GAAP to non-GAAP financial measures in
the financial statement tables for our historical non-GAAP
financial results included in this press release.
Webcast Information
1stDibs will host a webcast to discuss its third quarter 2023
financial results today at 8:00 a.m. Eastern Time. Investors and
participants can access the webcast at the 1stDibs Investor
Relations website (investors.1stdibs.com). A replay of the webcast
will be available through the same link following the webcast, for
one year thereafter.
Disclosure Information
In compliance with disclosure obligations under Regulation FD,
1stDibs announces material information to the public through a
variety of means, including filings with the Securities and
Exchange Commission, press releases, company blog posts, public
conference calls and webcasts, as well as the investor relations
website.
About 1stDibs
1stDibs is a leading online marketplace for connecting design
lovers with highly coveted sellers and makers of vintage, antique,
and contemporary furniture, home décor, art, jewelry, watches and
fashion.
Media Contact:Jennifer
Millerjennifer.miller@1stdibs.com
Investor Relations Contact:Kevin
LaBuzinvestors@1stdibs.com
Forward-Looking Statements
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
federal and state securities laws (collectively, "forward-looking
statements"). All statements in this press release other than
statements of historical fact may be deemed to be forward-looking
statements. In some cases, you can identify forward-looking
statements by terms such as: "accelerate," "anticipate," "believe,"
"can," "contemplate," "continue," "could," "demand," "estimate,"
"expand," "expect," "focus," "intend," "may," "might," "objective,"
"ongoing," "opportunity," "outlook," "plan," "potential,"
"predict," "progress," "project," "should," "target," "will,"
"would," or the negative of these terms, or other comparable
terminology or similar expressions intended to identify statements
about the future.
These forward-looking statements include, but are not limited
to, statements regarding the following: (1) our continued efforts
to lay the foundation for future growth; (2) our focus on
efficiency and steps to align our expenses to current demand and
the impact thereof; (3) our progress towards reaccelarating growth,
reducing our cost, and re-engineering our cost base; (4) the
implementation of our stock repurchase program; and (5) our future
results of operations and financial position, including our
financial guidance and outlook. We cannot guarantee that any
forward-looking statement will be accurate. Forward-looking
statements are based on current of future events and if these prove
to be inaccurate, actual results could vary materially from our
expectations and projections. Investors are therefore cautioned not
to place undue reliance on any forward-looking statements. These
forward-looking statements are subject to risks, uncertainties, and
other factors that could cause actual results to vary materially
from those discussed or implied in the forward-looking statements.
These risks and uncertainties include but are not limited to the
following: (1) our ability to execute our business plan and
strategies to achieve our strategic initiatives; (2) our ability to
achieve future growth; (3) our ability to enhance GMV growth and
shareholder value; (4) our ability to effectively manage costs; (5)
our ability to execute our stock repurchase program; (6) our
ability to reduce operating costs and realign investment priorities
following our workforce reduction; and (7) macroeconomic conditions
or geopolitical events or similar risks, as well as other risks,
uncertainties, and other factors discussed in our filings with the
Securities and Exchange Commission (the “SEC”), including our Form
10-K for the year ended December 31, 2022 and other periodic
reports and filings we make with the SEC. We qualify all of our
forward-looking statements by these cautionary statements. These
forward-looking statements speak only as of the date of this press
release and we undertake no obligation to publicly update or revise
any forward-looking statements contained herein, whether as a
result of any new information, future events, or otherwise, except
as required by law.
Key Operating Metrics Definitions
Gross Merchandise Value
We define GMV as the total dollar value from items sold by our
sellers through 1stDibs in a given month, minus cancellations
within that month, and excluding shipping and sales taxes. GMV
includes all sales reported to us by our sellers, whether
transacted through the 1stDibs marketplace or reported as an
offline sale. We view GMV as a measure of the total economic
activity generated by our online marketplace, and as an indicator
of the scale and growth of our online marketplace and the health of
our ecosystem. Our historical growth rates for GMV may not be
indicative of future growth rates in GMV.
Number of Orders
We define Number of Orders as the total number of orders placed
or reported through the 1stDibs marketplace in a given month, minus
cancellations within that month. Our historical growth rates for
Number of Orders may not be indicative of future growth rates in
Number of Orders.
Active Buyers
We define Active Buyers as buyers who have made at least one
purchase through our online marketplace during the 12 months ended
on the last day of the period presented, net of cancellations. A
buyer is identified by a unique email address; thus an Active Buyer
could have more than one account if they were to use a separate
unique email address to set up each account. We believe this metric
reflects scale, engagement and brand awareness, and our ability to
convert user activity on our online marketplace into transactions.
Our historical growth rates for Active Buyers may not be indicative
of future growth rates in new Active Buyers.
1STDIBS.COM, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands, except share and per share
amounts) |
(Unaudited) |
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
32,442 |
|
|
$ |
153,209 |
|
Short-term investments |
|
110,552 |
|
|
|
— |
|
Restricted cash, current |
|
— |
|
|
|
1,500 |
|
Accounts receivable, net of allowance for doubtful accounts of $195
and $113 at September 30, 2023 and December 31, 2022,
respectively |
|
693 |
|
|
|
972 |
|
Prepaid expenses |
|
2,612 |
|
|
|
3,506 |
|
Receivables from payment processors |
|
3,475 |
|
|
|
2,476 |
|
Other current assets |
|
942 |
|
|
|
800 |
|
Total current assets |
|
150,716 |
|
|
|
162,463 |
|
Restricted cash,
non-current |
|
3,336 |
|
|
|
3,334 |
|
Property and equipment,
net |
|
3,283 |
|
|
|
3,685 |
|
Operating lease right-of-use
assets |
|
20,073 |
|
|
|
21,990 |
|
Goodwill |
|
4,082 |
|
|
|
4,075 |
|
Other assets |
|
1,286 |
|
|
|
249 |
|
Total assets |
$ |
182,776 |
|
|
$ |
195,796 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,325 |
|
|
$ |
2,905 |
|
Payables due to sellers |
|
7,789 |
|
|
|
7,185 |
|
Accrued expenses |
|
11,323 |
|
|
|
10,761 |
|
Operating lease liabilities, current |
|
2,891 |
|
|
|
2,770 |
|
Other current liabilities |
|
2,633 |
|
|
|
2,429 |
|
Total current liabilities |
|
26,961 |
|
|
|
26,050 |
|
Operating lease liabilities,
non-current |
|
19,494 |
|
|
|
21,678 |
|
Other liabilities |
|
8 |
|
|
|
46 |
|
Total liabilities |
|
46,463 |
|
|
|
47,774 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized as
of September 30, 2023 and December 31, 2022; zero shares
issued and outstanding as of September 30, 2023 and
December 31, 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 400,000,000 shares authorized as of
September 30, 2023 and December 31, 2022; 40,386,375 and
39,260,193 shares issued as of September 30, 2023 and
December 31, 2022, respectively; and 40,051,416 and 39,260,193
outstanding as of September 30, 2023 and December 31,
2022, respectively |
|
403 |
|
|
|
393 |
|
Treasury stock, at cost; 334,959 and zero shares as of
September 30, 2023 and December 31, 2022,
respectively |
|
(1,377 |
) |
|
|
— |
|
Additional paid-in capital |
|
448,544 |
|
|
|
439,005 |
|
Accumulated deficit |
|
(310,778 |
) |
|
|
(291,020 |
) |
Accumulated other comprehensive loss |
|
(479 |
) |
|
|
(356 |
) |
Total stockholders’ equity |
|
136,313 |
|
|
|
148,022 |
|
Total liabilities and stockholders’ equity |
$ |
182,776 |
|
|
$ |
195,796 |
|
1STDIBS.COM, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Amounts in thousands, except share and per share
amounts) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net revenue |
$ |
20,663 |
|
|
$ |
22,729 |
|
|
$ |
63,762 |
|
|
$ |
73,892 |
|
Cost of revenue |
|
5,510 |
|
|
|
7,278 |
|
|
|
19,144 |
|
|
|
22,908 |
|
Gross profit |
|
15,153 |
|
|
|
15,451 |
|
|
|
44,618 |
|
|
|
50,984 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
8,411 |
|
|
|
11,072 |
|
|
|
28,007 |
|
|
|
34,139 |
|
Technology development |
|
4,515 |
|
|
|
6,363 |
|
|
|
17,199 |
|
|
|
18,711 |
|
General and administrative |
|
6,772 |
|
|
|
6,731 |
|
|
|
22,323 |
|
|
|
20,635 |
|
Provision for transaction losses |
|
688 |
|
|
|
1,183 |
|
|
|
2,940 |
|
|
|
4,432 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
Total operating expenses |
|
20,386 |
|
|
|
25,349 |
|
|
|
70,469 |
|
|
|
68,233 |
|
Loss from operations |
|
(5,233 |
) |
|
|
(9,898 |
) |
|
|
(25,851 |
) |
|
|
(17,249 |
) |
Other income, net: |
|
|
|
|
|
|
|
Interest income |
|
1,757 |
|
|
|
520 |
|
|
|
4,933 |
|
|
|
746 |
|
Interest expense |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(11 |
) |
Other, net |
|
171 |
|
|
|
353 |
|
|
|
1,160 |
|
|
|
837 |
|
Total other income, net |
|
1,928 |
|
|
|
870 |
|
|
|
6,093 |
|
|
|
1,572 |
|
Net loss before income taxes |
|
(3,305 |
) |
|
|
(9,028 |
) |
|
|
(19,758 |
) |
|
|
(15,677 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
(3,305 |
) |
|
|
(9,028 |
) |
|
|
(19,758 |
) |
|
|
(15,677 |
) |
Net loss per share—basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.41 |
) |
Weighted average common shares outstanding—basic and diluted |
|
39,962,932 |
|
|
|
38,668,231 |
|
|
|
39,647,716 |
|
|
|
38,291,977 |
|
1STDIBS.COM, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Amounts in thousands) |
(Unaudited) |
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(19,758 |
) |
|
$ |
(15,677 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
1,815 |
|
|
|
2,189 |
|
Stock-based compensation expense |
|
9,340 |
|
|
|
7,662 |
|
Provision for transaction losses, returns and refunds |
|
703 |
|
|
|
277 |
|
Amortization of costs to obtain revenue contracts |
|
242 |
|
|
|
233 |
|
Amortization of operating lease right-of-use assets |
|
1,917 |
|
|
|
1,891 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
(9,684 |
) |
Amortization of (discounts) premiums, net on short-term
investments |
|
(2,366 |
) |
|
|
— |
|
Other, net |
|
(45 |
) |
|
|
517 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
40 |
|
|
|
(151 |
) |
Prepaid expenses and other current assets |
|
415 |
|
|
|
(1,448 |
) |
Receivables from payment processors |
|
(999 |
) |
|
|
(619 |
) |
Other assets |
|
(1,215 |
) |
|
|
(602 |
) |
Accounts payable and accrued expenses |
|
(210 |
) |
|
|
(3,692 |
) |
Payables due to sellers |
|
606 |
|
|
|
(977 |
) |
Operating lease liabilities |
|
(2,063 |
) |
|
|
(2,036 |
) |
Other current liabilities and other liabilities |
|
103 |
|
|
|
(293 |
) |
Net cash used in operating activities |
|
(11,475 |
) |
|
|
(22,410 |
) |
Cash flows from
investing activities: |
|
|
|
Purchases of short-term
investments |
|
(166,471 |
) |
|
|
— |
|
Maturities of short-term
investments |
|
58,153 |
|
|
|
— |
|
Development
of internal-use software |
|
(1,215 |
) |
|
|
(1,688 |
) |
Purchases of property and
equipment |
|
(67 |
) |
|
|
(84 |
) |
Proceeds from sale of Design
Manager |
|
— |
|
|
|
14,611 |
|
Other, net |
|
— |
|
|
|
(18 |
) |
Net cash (used in) provided by investing activities |
|
(109,600 |
) |
|
|
12,821 |
|
Cash flows from
financing activities: |
|
|
|
Proceeds from exercise of
stock options |
|
78 |
|
|
|
1,548 |
|
Payments for repurchase of
common stock |
|
(1,312 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(1,234 |
) |
|
|
1,548 |
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash |
|
44 |
|
|
|
(689 |
) |
Net decrease in cash,
cash equivalents, and restricted cash |
|
(122,265 |
) |
|
|
(8,730 |
) |
Cash, cash equivalents, and
restricted cash at beginning of the period |
|
158,043 |
|
|
|
171,559 |
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
35,778 |
|
|
$ |
162,829 |
|
|
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
In this press release, we provide Adjusted EBITDA, a non-GAAP
financial measure that represents our net loss adjusted to exclude:
(1) depreciation and amortization; (2) stock-based compensation
expense; (3) other income, net; (4) provision for income taxes; and
(5) strategic alternative expenses. We also provide Adjusted EBITDA
Margin, a non-GAAP financial measure that presents Adjusted EBITDA
divided by net revenue. Below is a reconciliation of net loss, the
most directly comparable GAAP financial measure, to Adjusted
EBITDA.
We have included Adjusted EBITDA and Adjusted EBITDA Margin,
which are non-GAAP financial measures, because they are key
measures used by our management team to help us to assess our
operating performance and the operating leverage in our business.
We also use these measures to analyze our financial results,
establish budgets and operational goals for managing our business,
and make strategic decisions. We believe that Adjusted EBITDA and
Adjusted EBITDA Margin help identify underlying trends in our
business that could otherwise be masked by the effect of the income
and expenses that we exclude from Adjusted EBITDA and Adjusted
EBITDA Margin. Accordingly, we believe that these metrics provide
useful information to investors and others in understanding and
evaluating our results of operations, enhances the overall
understanding of our past performance and future prospects, and
allows for greater transparency with respect to key financial
metrics used by our management in their financial and operational
decision-making. We also believe that the presentation of these
non-GAAP financial measures provides an additional tool for
investors to use in comparing our core business and results of
operations over multiple periods with other companies in our
industry, many of which present similar non-GAAP financial measures
to investors, and to analyze our cash performance.
The non-GAAP financial measures presented may not be comparable
to similarly titled measures reported by other companies due to
differences in the way that these measures are calculated. The
non-GAAP financial measures presented should not be considered as
the sole measure of our performance and should not be considered in
isolation from, or as a substitute for, comparable financial
measures calculated in accordance with GAAP. Further, these
non-GAAP financial measures have certain limitations in that they
do not include the impact of certain expenses that are reflected in
our condensed consolidated statements of operations. Accordingly,
these non-GAAP financial measures should be considered as
supplemental in nature, and are not intended, and should not be
construed, as a substitute for the related financial information
calculated in accordance with GAAP. These limitations of Adjusted
EBITDA and Adjusted EBITDA Margin include the following:
- The exclusion of certain recurring,
non-cash charges, such as depreciation of property and equipment
and amortization of intangible assets. While these are non-cash
charges, we may need to replace the assets being depreciated and
amortized in the future and Adjusted EBITDA does not reflect cash
requirements for these replacements or new capital expenditure
requirements;
- The exclusion of stock-based
compensation expense, which has been a significant recurring
expense and will continue to constitute a significant recurring
expense for the foreseeable future, as equity awards are expected
to continue to be an important component of our compensation
strategy;
- The exclusion of other income, net,
which includes interest income related to our cash, cash
equivalents and short-term investments, interest expense, and
realized and unrealized gains and losses on foreign currency
exchange;
- The exclusion of gain on sale of Design
Manager, which is a one-time sale of our wholly owned subsidiary;
and
- The exclusion of strategic alternative
expenses in connection with capital return strategies, buy- and
sell-side mergers, acquisitions and partnerships, sale of a
business or subsidiary, business optimization costs related to
revisions of operational objectives and priorities, cost saving
initiatives related to one-time restructuring charges and
integration costs, in all cases outside the ordinary course.
Because of these limitations, you should consider Adjusted
EBITDA and Adjusted EBITDA Margin alongside other financial
performance measures, including net loss and our other GAAP
results. The information in the tables below sets forth the
non-GAAP financial measures along with the most directly comparable
GAAP financial measures.
1STDIBS.COM, INC. |
Reconciliation of Net Loss to Adjusted EBITDA |
(Amounts in thousands) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(3,305 |
) |
|
$ |
(9,028 |
) |
|
$ |
(19,758 |
) |
|
$ |
(15,677 |
) |
Excluding: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
449 |
|
|
|
708 |
|
|
|
1,815 |
|
|
|
2,189 |
|
Stock-based compensation expense |
|
2,982 |
|
|
|
3,154 |
|
|
|
9,340 |
|
|
|
7,662 |
|
Other income, net |
|
(1,928 |
) |
|
|
(870 |
) |
|
|
(6,093 |
) |
|
|
(1,572 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
Strategic alternative expenses |
|
— |
|
|
|
580 |
|
|
|
3,061 |
|
|
|
887 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(1,802 |
) |
|
$ |
(5,456 |
) |
|
$ |
(11,635 |
) |
|
$ |
(16,195 |
) |
Divided by: |
|
|
|
|
|
|
|
Net revenue |
$ |
20,663 |
|
|
$ |
22,729 |
|
|
$ |
63,762 |
|
|
$ |
73,892 |
|
Adjusted EBITDA Margin
(non-GAAP) |
|
(8.7 |
)% |
|
|
(24.0 |
)% |
|
|
(18.2 |
)% |
|
|
(21.9 |
)% |
1stdibs com (NASDAQ:DIBS)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
1stdibs com (NASDAQ:DIBS)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024