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1stdibs.com (DIBS)
NASDAQ:DIBS
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1stdibs.com
(NASDAQ:DIBS)
45Neutral
Positive Factors
Financial Performance
1stdibs.com, Inc. reported solid 4Q results, with both revenue and adjusted EBITDA beating consensus estimates.
Growth Strategy
DIBS launched a machine learning-based pricing model for jewelry, offering more precise recommendations tailored to maximize conversion.
Negative Factors
Guidance
Guidance for 1Q25 came in a bit softer than expected on both the top and bottom line.
1stdibs.com (DIBS) vs. S&P 500 (SPY)
Market Cap
$113.29M
Dividend YieldN/A
Average Volume (3M)74.58K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth4.22%
EPS Growth13.35%
CountryUS
Employees237
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-0.50
Shares Outstanding35,402,430
10 Day Avg. Volume68,634
30 Day Avg. Volume74,581
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.35
Price to Cash Flow (P/CF)10.60
P/FCF Ratio10.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside138.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
1stdibs.com Business Overview & Revenue Model
Company Description1stdibs.com, Inc. (DIBS) is a leading online marketplace that connects discerning buyers with a curated selection of high-end, luxury goods. Based in the United States, the company specializes in the sale of unique and exquisite items across various categories including fine art, furniture, jewelry, fashion, and home decor. It caters to a global clientele seeking rare and high-quality products, often sourced from renowned dealers, galleries, and artisans.
How the Company Makes Money1stdibs.com generates revenue primarily through transaction fees and subscription fees. The company charges a commission on each sale made through its platform, which is a percentage of the transaction value. Additionally, 1stdibs offers subscription packages to dealers and sellers, providing them with access to its marketplace and a suite of tools to manage their online presence. These subscription fees vary based on the level of service and exposure desired by the seller. The company also benefits from partnerships with luxury brands and design professionals, which enhance its product offerings and attract a high-end consumer base.
1stdibs.com Financial Statement Overview
Summary
1stdibs.com demonstrates positive revenue and gross margin trends, but profitability remains a significant challenge with persistent negative net income and cash flow issues. While the balance sheet shows low leverage, the company's ability to turn around operational performance will be crucial for future stability.Income Statement
1stdibs.com shows a slight revenue growth of 4.22% from 2023 to 2024, but the company remains unprofitable with a net margin of -21.11% in 2024. The gross profit margin is strong at 71.87%, indicating efficient sales cost management. However, consistent negative EBIT and EBITDA margins reflect operational inefficiencies.45
Neutral
Balance Sheet
The company has a modest debt-to-equity ratio of 0.22, indicating low leverage, but it has seen declining equity due to continued losses. ROE is negative, reflecting ongoing net losses. A relatively high equity ratio of 68.12% suggests a strong equity base relative to total assets.50
Neutral
Cash Flow
1stdibs.com shows negative free cash flow, although it has improved from the previous year by 77.04%. The operating cash flow to net income ratio is poor, reflecting cash flow challenges. Free cash flow to net income ratio remains negative, indicating that the company is not generating cash from operations.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 88.26M | 84.68M | 96.85M | 102.73M | 81.86M |
| Gross Profit | ||||
| 63.43M | 59.71M | 67.18M | 70.56M | 55.91M |
| EBIT | ||||
| -26.21M | -31.03M | -29.63M | -17.25M | -9.69M |
| EBITDA | ||||
| -13.18M | -17.81M | -17.24M | -17.81M | -6.48M |
| Net Income Common Stockholders | ||||
| -18.63M | -22.70M | -22.54M | -20.96M | -12.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 103.88M | 139.32M | 153.21M | 168.23M | 54.86M |
| Total Assets | ||||
| 145.76M | 180.81M | 195.80M | 192.25M | 81.34M |
| Total Debt | ||||
| 22.16M | 21.92M | 24.45M | 0.00 | 0.00 |
| Net Debt | ||||
| -3.81M | -15.48M | -128.76M | -168.23M | -54.86M |
| Total Liabilities | ||||
| 46.45M | 46.53M | 47.77M | 34.82M | 325.29M |
| Stockholders Equity | ||||
| 99.31M | 134.29M | 148.02M | 157.44M | -243.95M |
| Cash Flow | Free Cash Flow | |||
| -3.53M | -15.35M | -29.88M | -6.64M | -5.27M |
| Operating Cash Flow | ||||
| -2.91M | -13.56M | -27.91M | -4.40M | -3.44M |
| Investing Cash Flow | ||||
| 22.29M | -100.23M | 12.64M | -2.27M | 1.29M |
| Financing Cash Flow | ||||
| -30.71M | -3.63M | 2.04M | 120.05M | 1.56M |
1stdibs.com Technical Analysis
Negative
3.36
Price Trends
3.76
Negative
3.88
Negative
4.29
Negative
Market Momentum
-0.10
Positive
30.12
Neutral
5.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIBS, the sentiment is Negative. The current price of 3.36 is below the 20-day moving average (MA) of 3.86, below the 50-day MA of 3.76, and below the 200-day MA of 4.29, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 30.12 is Neutral, neither overbought nor oversold. The STOCH value of 5.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIBS.
1stdibs.com Risk Analysis
1stdibs.com disclosed 73 risk factors in its most recent earnings report. 1stdibs.com reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
1stdibs.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.77B | 35.97 | 12.04% | ― | 5.73% | 81.83% | |
68 Neutral | $13.57B | 35.91 | 131.11% | ― | 4.11% | 3328.10% | |
63 Neutral | $5.02B | 19.76 | -39.97% | ― | 2.18% | 5.77% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
50 Neutral | $568.47M | ― | 32.94% | ― | 9.32% | 25.94% | |
46 Neutral | $4.32B | ― | 17.86% | ― | -1.27% | 38.07% | |
45 Neutral | $113.29M | ― | -15.95% | ― | 4.22% | 13.35% |
* Consumer Cyclical Sector Average
Performance Comparison
DIBS
1stdibs.com
3.20
-2.86
-47.19%
W
Wayfair
34.08
-30.34
-47.10%
ETSY
Etsy Inc
46.87
-22.89
-32.81%
RVLV
Revolve Group
24.67
3.03
14.00%
CHWY
Chewy
33.20
15.21
84.55%
REAL
RealReal
5.44
2.19
67.38%
1stdibs.com Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -10.64% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive trajectory with significant GMV growth and improved financial metrics, despite challenges in the luxury market and increased operating expenses. The company has shown resilience through strategic innovations and cost management.Highlights
Strong GMV Growth
The company achieved a 9% GMV growth in Q4 2024, the fastest pace in three years, indicating a positive turnaround from previous declines.
Improved Financial Metrics
Revenue increased by $3.6 million and adjusted EBITDA increased by $5.3 million compared to the previous year, highlighting effective cost management and operating leverage.
Innovations in Pricing and Conversion
Implemented machine learning-based pricing models for jewelry and improved checkout speed, which contributed to higher conversion rates.
Active Buyer Growth
The company reported a 6% year-over-year increase in active buyers, marking a return to growth in this metric.
Lowlights
Market Weakness
Continued weakness in the luxury home furnishings market, with U.S. home sales at a 30-year low in 2024, impacting overall demand.
Seller Churn
The retirement of the essential seller program led to a 24% decrease in unique sellers, although this had minimal impact on GMV and listings.
Increased Operating Expenses
Operating expenses increased by 16% year-over-year, driven by higher headcount-related costs and professional service fees.
Company Guidance
In the 1stdibs Fourth Quarter 2024 Earnings Call, the company reported significant progress, exceeding guidance and achieving a 9% GMV growth in Q4, the fastest pace since 2021, marking a strong recovery from a 15% GMV decline in 2023. Throughout 2024, 1stdibs focused on improving conversion rates, which grew for the fifth consecutive quarter, and increasing their average order value by 2%, with a median order value increase of 4%. The company also made strategic investments, including rolling out machine learning-based pricing models for jewelry, improving checkout speed, and enhancing seller recommendations. Despite a 24% decline in unique sellers due to the retirement of the essential seller program, listings grew by 5% to over 1.8 million. Financially, 1stdibs reported a 9% revenue increase to $22.8 million, with gross profit up 10% to $16.5 million, and adjusted EBITDA loss slightly improved to $1.6 million from $1.7 million in the previous year. Looking ahead, they are targeting mid-single digit revenue growth to achieve operating leverage in 2025, with plans to maintain flat headcount and continue strategic investments to enhance buyer and seller value, ultimately aiming to capture market share in the recovering luxury home goods market.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.