In its fourth-quarter earnings call, 1stDibs.Com Inc. highlights significant GMV growth and outlines strategies for sustaining market share in the luxury design sector.
1stDibs.Com Inc. conducted its fourth-quarter earnings call for the fiscal year ended December 31, 2024, on a recent morning, with key executives offering insights into the company’s recent performance and future strategies. Kelvin, the conference operator, introduced the briefing, which was led by Kevin LaBuz, Head of Investor Relations and Corporate Development. LaBuz guided participants through the presentation while Chief Executive Officer David Rosenblatt and Chief Financial Officer Thomas Etergino provided more detailed updates.
David Rosenblatt opened the call by discussing the company’s notable milestones in the fourth quarter, including an increase in Gross Merchandise Value (GMV) and gaining market share. “We exceeded our guidance, achieved our highest GMV growth since 2021, and gained market share,” Rosenblatt remarked during the presentation. Despite experiencing a flat GMV throughout the year—following a decline in 2023—the company ended the year with a 9% growth in GMV for the fourth quarter, marking its most significant growth in three years.
Rosenblatt attributed this improvement to strategic measures taken in previous years, including reducing operating expenses and refining the company’s product lineup. He noted that while they faced a challenging market, which saw a downturn in U.S. home sales—a crucial factor for furniture demand—he remains optimistic about a potential rebound. He stated, “This downturn is cyclical, not structural,” reiterating the long-term opportunities within the luxury real estate and home goods market.
Financially, the company found itself in a beneficial position, with revenue and adjusted EBITDA showing positive year-over-year growth. Rosenblatt indicated that operating expenses had decreased for the second consecutive year, contributing to their best adjusted EBITDA margins since going public. In this regard, adjusted EBITDA improved by $5.3 million compared to the previous year. He highlighted that, “Our asset-like model allows us to scale GMV and revenue without proportionate increases in our workforce.”
Further conference updates discussed their operational priorities. The company reported continued improvements in conversion rates and that the number of unique sellers decreased to approximately 5,900, a result of changes to their seller program. The company revealed that significant efforts were being made to increase conversion, including the launch of a machine learning-based pricing model for jewelry and faster checkout processes that tie into their conversion strategy.
Looking forward to 2025, Rosenblatt expressed cautious optimism, stating that while the company believes the worst of the luxury home furnishings cycle was behind them, the pace of recovery is still uncertain. Therefore, 1stDibs is focusing on creating “self-help initiatives” aimed at increasing GMV, improving margins, and enhancing its market share.
Etergino, who followed Rosenblatt, provided a detailed review of the fourth-quarter financial results and the first-quarter outlook. He shared that year-over-year comparisons for several key metrics showed growth, sustaining the positive trajectory into the new fiscal year.
As a part of an overarching strategy to solidify its position in the luxury online design market, 1stDibs aims to enhance the buying experience through improved organic traffic growth, competitive pricing strategies, and an optimized conversion funnel. The leadership’s approach centers on adding transparency to the marketplace and providing tools that increase sales for sellers while ensuring a frictionless experience for buyers.
In closing, Rosenblatt reaffirmed their commitment to sustaining growth and market share in 2025, focusing on capturing their share of the luxury design market while building towards profitability. The call ended with anticipation for the upcoming financial year and the opportunities that lie ahead for 1stDibs.Com Inc., emphasizing their renewed momentum and plan for scalable success in the competitive landscape.
Source: Noah Wire Services
