1stDibs starts to see benefits of ‘re-engineered cost structure’ in Q4

NEW YORK — Luxury design products online marketplace 1stDibs says 2023’s groundwork is starting to produce “tangible results,” in its earnings report for the fourth quarter and fiscal year ended Dec. 31, 2023.

While net revenue declined in the quarter, the period saw improvements in operating income, net income and earnings per share for the period.

Net revenue was $20.9 million, down nearly 9% from the previous year. The company saw a net loss for the period, down $2.9 million, an improvement of nearly $4 million from the same period last year.

The company also reported cash, cash equivalents and short-term investments of $139.3 million at the end of December.

“Throughout 2023, we laid the groundwork for future success,” said David Rosenblatt, 1stDibs CEO. “Over the past year we have reduced our cost structure, accelerated the path to profitability, focused our roadmap on the highest-ROI projects and begun returning capital to shareholders. Our efforts are producing tangible results, including a return to conversion growth.”

Tom Etergino, chief financial officer, added, “The benefits of the actions we have taken to streamline our business and re-engineer our cost structure over the past two years are on display this quarter, with operating expenses down 19% and adjusted EBITDA margins improved meaningfully. We have made significant strides toward bettering our financial health, positioning ourselves for sustainable growth and driving operating leverage going forward.”

For the full year, the company reported net revenue of $84.7 million, down 13%, and a net loss of $22.7 million, virtually flat compared with the previous year.

1stDibs reported a decline in the number of orders for Q4, down 11% year over year to 34,000. Active buyers for the period were also down 10% to 61,000.

1stDibs projects gross merchandise value of $83 million to $90 million for the first quarter of 2024, with a guidance of net revenue between $20.6 million and $21.9 million and adjusted EBITDA of (13%) to (8%).

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