1stDibs Announces Q4 and Full-Year 2024 Financial Results

1stDibs Announces Q4 and Full-Year 2024 Financial Results

1stDibs.com, Inc., a premier online marketplace for luxury design products, has announced its financial results for the fourth quarter and full year ending December 31, 2024. Despite challenging market conditions, the company achieved revenue growth and expanded its market share, demonstrating the effectiveness of its strategic initiatives.

Fourth Quarter 2024 Financial Performance

In the final quarter of 2024, 1stDibs delivered strong results:

  • Net Revenue: The company reported net revenue of $22.8 million, marking a 9% increase compared to the same period in 2023.
  • Gross Profit: Gross profit reached $16.5 million, up 10% year-over-year.
  • Gross Margin: Improved to 72.3%, compared to 71.5% in Q4 2023.
  • GAAP Net Loss: Recorded at $5.2 million, compared to a $2.9 million net loss in the fourth quarter of the previous year.
  • Non-GAAP Adjusted EBITDA: Reported at $(1.6) million, an improvement from $(1.7) million in Q4 2023.
  • Cash, Cash Equivalents, and Short-Term Investments: Totaled $103.9 million as of year-end.

Full-Year 2024 Financial Performance

The company also saw positive financial momentum throughout 2024:

  • Net Revenue: Reached $88.3 million, reflecting a 4% year-over-year growth.
  • Gross Profit: Grew by 6% to $63.4 million.
  • Gross Margin: Improved to 71.9%, up from 70.3% in 2023.
  • GAAP Net Loss: Reduced to $18.6 million, an improvement from $22.7 million in the prior year.
  • Non-GAAP Adjusted EBITDA: Reported at $(8.0) million, an improvement from $(13.3) million in 2023.

CEO and CFO Commentary

David Rosenblatt, CEO of 1stDibs, highlighted the company’s strong finish to the year, stating, “2024 marked a turning point, highlighted by our highest GMV growth in three years in the fourth quarter. Market share gains and a return to revenue growth in 2024 despite a challenging market are clear signals that our strategy is working. We’re excited to continue driving progress in 2025.”

Chief Financial Officer Tom Etergino reinforced the company’s financial discipline, noting, “We achieved significant progress in 2024, reducing operating expenses for the second consecutive year and delivering our strongest Adjusted EBITDA margins since becoming a public company. As we enter 2025, our focus remains on driving operating leverage and maintaining disciplined expense management.”

Key Business Metrics and Developments

1stDibs experienced growth across several operational and business metrics during the fourth quarter:

  • Gross Merchandise Value (GMV): Increased 9% year-over-year to $94.5 million.
  • Number of Orders: Grew 7% to approximately 37,000.
  • Active Buyers: Expanded 6% to 64,000.

These improvements indicate sustained demand for luxury design products and the growing appeal of 1stDibs’ marketplace.

Financial Outlook for Q1 2025

Looking ahead, 1stDibs has provided financial guidance for the first quarter of 2025:

  • GMV: Expected to range between $90 million and $96 million.
  • Net Revenue: Forecasted to be between $21.7 million and $22.8 million.
  • Adjusted EBITDA Margin (Non-GAAP): Anticipated to be between (12%) and (8%).

While the company acknowledges that actual results may vary, it remains optimistic about continued growth and financial improvements in the coming year.

Commitment to Growth and Profitability

1stDibs continues to focus on innovation, customer acquisition, and operational efficiency. The company’s ability to maintain growth in a fluctuating economic environment underscores the effectiveness of its strategy and business model. With a strong cash position and disciplined financial management, 1stDibs is well-positioned to further expand its luxury marketplace and enhance shareholder value.

Conclusion

The financial results for 1stDibs in 2024 highlight a year of resilience and strategic advancement. The company’s ability to grow revenue, expand margins, and improve key business metrics demonstrates its strength in the luxury e-commerce sector. As it enters 2025, 1stDibs remains focused on furthering its market leadership, driving operational efficiencies, and continuing its trajectory toward long-term profitability.

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