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1stdibs.com, Inc. (DIBS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered modest top-line growth and margin stability: net revenue $22.55M (+2% YoY), gross margin 72.4% (flat YoY), and non-GAAP adjusted EBITDA margin -7.8% (better YoY) .
  • Versus S&P Global consensus, revenue was a small beat ($22.35M est. vs $22.55M actual), while EPS was a slight miss (-$0.13 est. vs -$0.14 actual); beats/misses were not large enough to change the narrative materially* .
  • Guidance for Q2 2025 implies softer conditions (GMV $85–$92M, revenue $21.2–$22.5M, adjusted EBITDA margin -14% to -10%), with management citing conversion moderation in April and cautious discretionary demand .
  • Key stock catalysts: ongoing market-share gains despite contracting end markets, improving organic traffic and conversion, and expanding ML-driven pricing/shipping initiatives; near-term pressure stems from macro/tariff-related demand headwinds and lower take rates .

Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Market share gains for the fifth straight quarter; GMV up 3% YoY to $94.7M with double-digit growth in jewelry and fashion: “GMV and revenue exceeded the midpoint of guidance and adjusted EBITDA margins exceeded the high end” .
  • Organic traffic returned to growth as site performance and SEO improvements took hold: “We returned to organic traffic growth in the first quarter… over 70% of our traffic is organic” .
  • ML-based pricing fully launched across verticals; visibility of estimated pricing improved buyer conversion: “ML pricing models are currently live in all verticals… elevating 1stdibs estimate prominence led to higher conversion” .

What Went Wrong

  • GAAP net loss widened to -$4.81M (vs -$3.30M YoY); GAAP EPS -$0.14 vs -$0.08 YoY, reflecting higher operating expenses and provision for transaction losses (4% of revenue) .
  • Take rate declined ~30 bps YoY due to mix shift toward higher-value orders, pressuring transaction revenue yield .
  • Conversion moderated sequentially and dropped in April, concentrated in consumer furniture; management warned of macro-driven volatility (tariffs, housing softness, negative wealth effect) .

Financial Results

Headline P&L and Margins (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$21.19 $22.77 $22.55
GAAP EPS ($USD)-$0.15 -$0.14 -$0.14
Gross Margin (%)71.0% 72.3% 72.4%
Adjusted EBITDA Margin (non-GAAP, %)-14.1% -7.2% -7.8%

KPIs and Marketplace Metrics (oldest → newest)

KPIQ3 2024Q4 2024Q1 2025
GMV ($USD Millions)$84.6 (+/-5% YoY) $94.5 (+9% YoY) $94.7 (+3% YoY)
Number of Orders (K)~33 (+7% YoY) ~37 (+7% YoY) ~35 (flat YoY)
Active Buyers (K)~63 (-1% YoY) ~64 (+6% YoY) ~65 (+7% YoY, +1% seq)
On-Platform AOV ($)N/A~$2,600 (+2% YoY) ~$2,600 (+4% YoY)
Median Order Value ($)N/A~$1,200 (+4% YoY) ~$1,250 (+4% YoY)
Orders < $1,000 (% change YoY)N/AN/A-5% YoY
Orders > $1,000 (% change YoY)N/AN/A+4% YoY
Take Rate YoY Change (bps)N/AN/A~-30 bps YoY

Q1 2025 vs S&P Global Consensus

MetricConsensusActualSurprise
Revenue ($USD)$22.354M*$22.545M +$0.191M (beat)
GAAP EPS ($USD)-$0.13*-$0.14 -$0.01 (miss)
# of Revenue Estimates3*——
# of EPS Estimates1*——

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
GMV ($USD)Q1 2025$90M–$96M Actual $94.7M Near high end (beat vs midpoint)
Net Revenue ($USD)Q1 2025$21.7M–$22.8M Actual $22.55M In-range (near high end)
Adjusted EBITDA Margin (non-GAAP)Q1 2025-12% to -8% Actual -7.8% Better than guidance (beat)
GMV ($USD)Q2 2025N/A$85M–$92M New (initiated)
Net Revenue ($USD)Q2 2025N/A$21.2M–$22.5M New (initiated)
Adjusted EBITDA Margin (non-GAAP)Q2 2025N/A-14% to -10% New (initiated)
Gross Margin (%)Q2 2025N/AToward lower end of 71%–73% range New (initiated)
Provision for Transaction LossesQ2 2025N/A~4% of revenue New (initiated)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
AI/ML Pricing & ShippingRolled ML pricing from furniture (Q3) to jewelry (Q4); ML team buildout ML pricing live in all verticals; adoption >90% below $9k, lower above $9k; expanding ML to shipping pre-quotes Expanding scope; increasing adoption at lower price points
Organic Traffic & SEOTraffic declines moderated; ~70% organic in Q4 Organic traffic returned to growth; SEO and site improvements drove gains Improving
Conversion5 straight quarters of YoY increase in Q4 6 straight quarters YoY increase; April conversion drop in consumer furniture Positive trend with near-term moderation
Seller Churn & ListingsElevated churn from retiring essential seller program; expectations to normalize H1’25; listings up 5% Churn expected to normalize in Q2; ~5,900 unique sellers; listings continued to grow Normalizing by Q2
Macro & TariffsHousing market softness, discretionary demand challenged New tariff regime commentary; limited direct exposure; secondary negative wealth effect Persistent headwinds
Active BuyersFirst YoY growth since Q2’22 in Q4 (+6% YoY) +7% YoY, +1% seq; directly tied to conversion improvements Improving
Capital Return$10M repurchase authorization (Q3); $5.3M repurchased in Q4; $31.6M cumulative ~$1.8M repurchased in Q1; ~$33.4M cumulative; ~6.9M shares Ongoing buybacks

Management Commentary

  • “GMV and revenue exceeded the midpoint of guidance and adjusted EBITDA margins exceeded the high end… Our product-led growth strategy is delivering a better buyer and seller experience” — CEO David Rosenblatt .
  • “We returned to organic traffic growth in the first quarter… improvements in SEO and direct traffic… over 70% of our traffic is organic” — CEO David Rosenblatt .
  • “We forecast second quarter GMV of $85M to $92M… and adjusted EBITDA margin loss of 14% to 10%… reflects… softening of conversion in April… and moderating AOV growth” — CFO Tom Etergino .
  • “Take rates were down approximately 30 bps year-over-year due primarily to a shift to higher value orders” — CFO Tom Etergino .
  • “We are now focused on… surfacing [ML] pricing recommendations to buyers… and improving our accuracy to spur seller adoption” — CEO David Rosenblatt .

Q&A Highlights

  • Conversion sustainability: April conversion drop isolated to consumer furniture; traffic stable; focus remains on long-term drivers (product, funnel optimization) .
  • Seller churn normalization: Post subscription pricing changes, churn trends normalizing; listings prioritized over seller count; expected normalization in Q2 .
  • Active buyers growth: Growth is a function of conversion; management expects continued vigilance given macro uncertainty .
  • Market share measurement: Benchmarking GMV vs syndicated credit card data for online furniture/luxury; share gains continued .
  • ML pricing adoption: >90% adoption below $9k; lower above $9k due to fewer data points; ML expanding to shipping pre-quotes and customer service agent initiatives .

Estimates Context

  • Q1 2025 revenue slightly beat S&P Global consensus ($22.35M est. vs $22.55M actual); GAAP EPS slightly missed (-$0.13 est. vs -$0.14 actual)* .
  • Q2 2025 consensus ahead of quarter was ~$22.10M revenue; company guided $21.2–$22.5M; EPS consensus -$0.17, consistent with guided margin pressure dynamics* .
  • Estimates likely adjust modestly: revenue trajectory broadly intact; EPS revisions skew down near-term given lower gross margin range and higher headcount-related costs .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Slight revenue beat and minor EPS miss signal steady execution amid macro softness; topline growth supported by conversion and organic traffic improvements .
  • Q2 guide implies caution (conversion moderation, lower-end gross margin, ~4% provision for transaction losses); near-term EPS risk persists .
  • Structural positives: market-share gains, ML-driven pricing and shipping pre-quotes, and product velocity in funnel optimization should sustain medium-term growth .
  • Mix-driven take-rate compression (~30 bps YoY) and higher-value order mix are watch items for revenue yield; AOV/median order value rising is supportive .
  • Balance sheet remains strong ($101M cash/investments); ongoing buybacks (~$33.4M cumulative) provide capital return and potential support on weakness .
  • Narrative moving the stock near-term: delivery vs Q2 guidance, April/May conversion trends in consumer furniture, ML adoption at higher price points, and organic traffic momentum .
  • Medium-term thesis: if organic growth and conversion continue while expenses stay disciplined (flat headcount), operating leverage can emerge at mid-single-digit revenue growth as housing/luxury cycle normalizes .

Additional Data (Cross-References)

  • Q1 2025 results: net revenue $22.545M, gross profit $16.322M, GAAP net loss -$4.806M, GAAP EPS -$0.14, adjusted EBITDA -$1.748M (margin -7.8%), cash+ST investments $101.0M .
  • Q4 2024 comparison: revenue $22.770M, gross margin 72.3%, adjusted EBITDA margin -7.2% .
  • Q3 2024 comparison: revenue $21.190M, gross margin 71.0%, adjusted EBITDA margin -14.1% .