1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for
luxury design products ("1stDibs" or the "Company"), today reported
financial results for its fourth quarter and full year ended
December 31, 2022.
Fourth Quarter 2022 Financial Highlights
- Net revenue was $23.0 million, a
decrease of 15% year-over-year.
- Gross profit was $16.2 million, a
decrease of 3% year-over-year.
- Gross margin was 70.5%, compared to
61.7% in the fourth quarter 2021.
- GAAP net loss was $6.9 million
compared to a net loss of $8.1 million in the fourth quarter
2021.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(4.5) million and (19.5)%, respectively,
compared to $(6.7) million and (25.0)%, respectively, in the
fourth quarter 2021.
- Cash and cash equivalents totaled
$153.2 million as of December 31, 2022.
Full Year 2022 Financial Highlights
- Net revenue was $96.8 million, a
decrease of 6% year-over-year.
- Gross profit was $67.2 million, a
decrease of 5% year-over-year.
- Gross margin was 69.4%, compared to
68.7% in the year ended December 31, 2021.
- GAAP net loss was $22.5 million,
compared to $21.0 million in the year ended December 31,
2021.
- Non-GAAP Adjusted EBITDA and Adjusted
EBITDA Margin was $(20.7) million and (21.3)%, respectively,
compared to $(16.5) million and (16.1)%, respectively, in the year
ended December 31, 2021.
- On June 29, 2022, the Company sold 100%
of its equity interest in Design Manager for a purchase price of
$14.8 million and recorded a net gain on the sale of $9.7
million.
- In September 2022, the Company
announced and implemented a restructuring plan to reduce
operational costs and realign investment priorities involving the
reduction of approximately 10% of the Company’s workforce. As a
result of the reduction, we incurred approximately $0.7 million in
non-recurring restructuring charges.
“In 2022, despite a challenging environment for e-commerce, we
made significant progress on our strategic priorities, primarily
Auctions, international expansion, supply growth and improving our
cost structure,” said David Rosenblatt, 1stDibs Chief Executive
Officer.
Tom Etergino, Chief Financial Officer of 1stDibs said, “We
delivered our second quarter of sequential adjusted EBITDA margin
improvement, driven by expense reductions. In 2023 we will remain
focused on improving efficiency while also making selective
investments in areas of the business showing strong potential, like
Auctions and international expansion.”
Other Recent Business Highlights and Fourth Quarter Key
Operating Metrics
- GMV was $104 million, a decrease
of 11% year-over-year.
- Number of Orders was approximately 38K,
a decrease of 5% year-over-year.
- Active Buyers was approximately 68K, a
decrease of 7% year-over-year.
Financial Guidance and Outlook
The Company’s first quarter 2023 guidance is below.
|
Q1 2023 Guidance |
GMV |
$93 million - $100 million |
Net revenue |
$21.4 million - $22.5 million |
Adjusted EBITDA margin
(non-GAAP) |
(29%) - (24%) |
Actual results may differ materially from our Financial Guidance
and Outlook as a result of, among other things, the factors
described under “Forward-Looking Statements” below.
A GAAP reconciliation to our non-GAAP guidance measure (adjusted
EBITDA) is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, expenses that may be incurred in the
future. Stock-based compensation expense is impacted by the timing
of employee stock transactions, the future fair market value of our
common stock, and our future hiring and retention needs, all of
which are difficult to predict and subject to change. We have
provided a reconciliation of GAAP to non-GAAP financial measures in
the financial statement tables for our historical non-GAAP
financial results included in this press release.
Webcast Information
1stDibs will host a webcast to discuss its fourth quarter and
full year 2022 financial results today at 8:00 a.m. Eastern Time.
Investors and participants can access the webcast at the 1stDibs
Investor Relations website (investors.1stdibs.com). A replay of the
webcast will be available through the same link following the
webcast, for one year thereafter.
Disclosure Information
In compliance with disclosure obligations under Regulation FD,
1stDibs announces material information to the public through a
variety of means, including filings with the Securities and
Exchange Commission, press releases, company blog posts, public
conference calls and webcasts, as well as the investor relations
website.
About 1stDibs
1stDibs is a leading online marketplace for connecting design
lovers with highly coveted sellers and makers of vintage, antique,
and contemporary furniture, home décor, art, jewelry, watches and
fashion.
Media Contact:
Jennifer Miller
jennifer.miller@1stdibs.com
Investor Relations Contact:
Kevin LaBuz
investors@1stdibs.comForward-Looking
Statements
This press release contains forward-looking statements within
the meaning of federal and state securities laws. All statements in
this press release other than statements of historical fact may be
deemed to be forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as: "accelerate,"
"anticipate," "believe," "can," "contemplate," "continue," "could,"
"demand," "estimate," "expand," "expect," "focus," "intend," "may,"
"might," "objective," "ongoing," "opportunity," "outlook," "plan,"
"potential," "predict," "progress," "project," "should," "target,"
"will," "would," or the negative of these terms, or other
comparable terminology or similar expressions intended to identify
statements about the future.
These forward-looking statements include, but are not limited
to, statements regarding the following: (1) our continued efforts
to lay the foundation for future growth; (2) our focus on
efficiency and steps to align our expenses to current demand and
the impact thereof; and (3) our future results of operations and
financial position, including our financial guidance and outlook.
We cannot guarantee that any forward-looking statement will be
accurate. Forward-looking statements are based on current of future
events and if these prove to be inaccurate, actual results could
vary materially from our expectations and projections. Investors
are therefore cautioned not to place undue reliance on any
forward-looking statements. These forward-looking statements are
subject to risks, uncertainties, and other factors that could cause
actual results to vary materially from those discussed or implied
in the forward-looking statements. These risks and uncertainties
include but are not limited to the following: (1) our ability to
execute our business plan and strategies to achieve our strategic
initiatives; (2) our ability to achieve future growth; (3) risks
related to our evaluation of multiple alternatives, including the
outcome, if any, of such evaluation process, and market perception
of, or reaction to, the foregoing; (4) our ability to enhance GMV
growth and shareholder value; (5) our ability to effectively manage
costs; and (6) macroeconomic conditions or geopolitical events or
similar risks, as well as other risks, uncertainties, and other
factors discussed in our filings with the Securities and Exchange
Commission (the “SEC”), including our Form 10-K for the year ended
December 31, 2021, our Forms 10-Q for the quarters ended March 31,
2022, June 30, 2022, and September 30, 2022, and other periodic
reports and filings we make with the SEC. We qualify all of our
forward-looking statements by these cautionary statements. These
forward-looking statements speak only as of the date of this press
release and we undertake no obligation to publicly update or revise
any forward-looking statements contained herein, whether as a
result of any new information, future events, or otherwise, except
as required by law.
Key Operating Metrics Definitions
Gross Merchandise Value
We define GMV as the total dollar value from items sold by our
sellers through 1stDibs in a given month, minus cancellations
within that month, and excluding shipping and sales taxes. GMV
includes all sales reported to us by our sellers, whether
transacted through the 1stDibs marketplace or reported as an
offline sale. We view GMV as a measure of the total economic
activity generated by our online marketplace, and as an indicator
of the scale and growth of our online marketplace and the health of
our ecosystem. Our historical growth rates for GMV may not be
indicative of future growth rates in GMV.
Number of Orders
We define Number of Orders as the total number of orders placed
or reported through the 1stDibs marketplace in a given month, minus
cancellations within that month. Our historical growth rates for
Number of Orders may not be indicative of future growth rates in
Number of Orders.
Active Buyers
We define Active Buyers as buyers who have made at least one
purchase through our online marketplace during the 12 months ended
on the last day of the period presented, net of cancellations. A
buyer is identified by a unique email address; thus an Active Buyer
could have more than one account if they were to use a separate
unique email address to set up each account. We believe this metric
reflects scale, engagement and brand awareness, and our ability to
convert user activity on our online marketplace into transactions.
Our historical growth rates for Active Buyers may not be indicative
of future growth rates in new Active Buyers.
1STDIBS.COM,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share and per
share amounts)(Unaudited)
|
December 31, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
153,209 |
|
|
$ |
168,226 |
|
Restricted cash, current |
|
1,500 |
|
|
|
— |
|
Accounts receivable, net of allowance for doubtful accounts of $113
and $29 at December 31, 2022 and December 31, 2021,
respectively |
|
972 |
|
|
|
701 |
|
Prepaid expenses |
|
3,506 |
|
|
|
3,951 |
|
Receivables from payment processors |
|
2,476 |
|
|
|
2,142 |
|
Other current assets |
|
800 |
|
|
|
867 |
|
Total current assets |
|
162,463 |
|
|
|
175,887 |
|
Restricted cash, non-current |
|
3,334 |
|
|
|
3,333 |
|
Property and equipment,
net |
|
3,685 |
|
|
|
4,459 |
|
Operating lease right-of-use
assets |
|
21,990 |
|
|
|
— |
|
Goodwill |
|
4,075 |
|
|
|
7,202 |
|
Intangible assets, net |
|
3 |
|
|
|
1,164 |
|
Other assets |
|
246 |
|
|
|
209 |
|
Total assets |
$ |
195,796 |
|
|
$ |
192,254 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,905 |
|
|
$ |
4,729 |
|
Payables due to sellers |
|
7,185 |
|
|
|
10,225 |
|
Accrued expenses |
|
10,761 |
|
|
|
13,745 |
|
Operating lease liabilities, current |
|
2,770 |
|
|
|
— |
|
Other current liabilities |
|
2,429 |
|
|
|
3,512 |
|
Total current liabilities |
|
26,050 |
|
|
|
32,211 |
|
Operating lease liabilities,
non-current |
|
21,678 |
|
|
|
— |
|
Other liabilities |
|
46 |
|
|
|
2,605 |
|
Total liabilities |
|
47,774 |
|
|
|
34,816 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized as
of December 31, 2022 and December 31, 2021; zero shares
issued and outstanding as of December 31, 2022 and
December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 400,000,000 shares authorized as of
December 31, 2022 and December 31, 2021; 39,260,193 and
38,000,086 shares issued as of December 31, 2022 and
December 31, 2021, respectively; and 39,260,193 and 37,991,529
shares outstanding as of December 31, 2022 and
December 31, 2021, respectively |
|
393 |
|
|
|
380 |
|
Additional paid-in capital |
|
439,005 |
|
|
|
425,769 |
|
Accumulated deficit |
|
(291,020 |
) |
|
|
(268,482 |
) |
Accumulated other comprehensive loss |
|
(356 |
) |
|
|
(229 |
) |
Total stockholders’ equity |
|
148,022 |
|
|
|
157,438 |
|
Total liabilities and stockholders’ equity |
$ |
195,796 |
|
|
$ |
192,254 |
|
1STDIBS.COM,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share and
per share amounts)(Unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net revenue |
$ |
22,957 |
|
|
$ |
26,930 |
|
|
$ |
96,849 |
|
|
$ |
102,731 |
|
Cost of revenue |
|
6,762 |
|
|
|
10,306 |
|
|
|
29,670 |
|
|
|
32,167 |
|
Gross profit |
|
16,195 |
|
|
|
16,624 |
|
|
|
67,179 |
|
|
|
70,564 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
10,637 |
|
|
|
11,762 |
|
|
|
44,776 |
|
|
|
47,414 |
|
Technology development |
|
5,726 |
|
|
|
5,849 |
|
|
|
24,437 |
|
|
|
19,110 |
|
General and administrative |
|
6,959 |
|
|
|
6,064 |
|
|
|
27,594 |
|
|
|
21,293 |
|
Provision for transaction losses |
|
1,501 |
|
|
|
1,405 |
|
|
|
5,933 |
|
|
|
5,191 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
|
|
— |
|
Total operating expenses |
|
24,823 |
|
|
|
25,080 |
|
|
|
93,056 |
|
|
|
93,008 |
|
Loss from operations |
|
(8,628 |
) |
|
|
(8,456 |
) |
|
|
(25,877 |
) |
|
|
(22,444 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
Interest income |
|
860 |
|
|
|
54 |
|
|
|
1,606 |
|
|
|
146 |
|
Interest expense |
|
— |
|
|
|
(4 |
) |
|
|
(11 |
) |
|
|
(16 |
) |
Other, net |
|
944 |
|
|
|
340 |
|
|
|
1,781 |
|
|
|
1,372 |
|
Total other income (expense), net |
|
1,804 |
|
|
|
390 |
|
|
|
3,376 |
|
|
|
1,502 |
|
Net loss before income taxes |
|
(6,824 |
) |
|
|
(8,066 |
) |
|
|
(22,501 |
) |
|
|
(20,942 |
) |
Provision for income taxes |
|
(37 |
) |
|
|
(21 |
) |
|
|
(37 |
) |
|
|
(21 |
) |
Net loss |
|
(6,861 |
) |
|
|
(8,087 |
) |
|
|
(22,538 |
) |
|
|
(20,963 |
) |
Accretion of redeemable convertible preferred stock to redemption
value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,061 |
) |
Net loss attributable to common stockholders |
$ |
(6,861 |
) |
|
$ |
(8,087 |
) |
|
$ |
(22,538 |
) |
|
$ |
(28,024 |
) |
Net loss per share attributable to common stockholders—basic and
diluted |
$ |
(0.18 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.08 |
) |
Weighted average common shares outstanding—basic and diluted |
|
39,035,706 |
|
|
|
37,908,878 |
|
|
|
38,479,437 |
|
|
|
26,059,744 |
|
1STDIBS.COM,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(Unaudited)
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(22,538 |
) |
|
$ |
(20,963 |
) |
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
2,710 |
|
|
|
3,112 |
|
Stock-based compensation expense |
|
11,214 |
|
|
|
2,839 |
|
Change in fair value of deferred acquisition consideration |
|
— |
|
|
|
427 |
|
Provision for transaction losses and e-commerce returns |
|
781 |
|
|
|
701 |
|
Amortization of costs to obtain revenue contracts |
|
310 |
|
|
|
447 |
|
Amortization of operating lease right-of-use assets |
|
2,541 |
|
|
|
— |
|
Deferred rent |
|
— |
|
|
|
(194 |
) |
Gain on sale of Design Manager |
|
(9,684 |
) |
|
|
— |
|
Other, net |
|
195 |
|
|
|
21 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(497 |
) |
|
|
52 |
|
Prepaid expenses and other current assets |
|
31 |
|
|
|
(1,418 |
) |
Receivables from payment processors |
|
(323 |
) |
|
|
910 |
|
Other assets |
|
(615 |
) |
|
|
(145 |
) |
Accounts payable and accrued expenses |
|
(5,206 |
) |
|
|
5,055 |
|
Payables due to sellers |
|
(3,041 |
) |
|
|
5,732 |
|
Operating lease liabilities |
|
(2,735 |
) |
|
|
— |
|
Other current liabilities and other liabilities |
|
(1,057 |
) |
|
|
(977 |
) |
Net cash used in operating activities |
|
(27,914 |
) |
|
|
(4,401 |
) |
Cash flows from investing
activities: |
|
|
|
Development
of internal-use software |
|
(1,871 |
) |
|
|
(2,110 |
) |
Purchases of property and
equipment |
|
(93 |
) |
|
|
(129 |
) |
Proceeds from sale of Design
Manager |
|
14,611 |
|
|
|
— |
|
Other, net |
|
(6 |
) |
|
|
(30 |
) |
Net cash provided by (used in) investing activities |
|
12,641 |
|
|
|
(2,269 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from issuance of common
stock in initial public offering, net of underwriting discounts and
commissions |
|
— |
|
|
|
122,993 |
|
Proceeds from exercise of stock
options |
|
2,035 |
|
|
|
2,729 |
|
Payment of deferred acquisition
consideration |
|
— |
|
|
|
(640 |
) |
Payment of deferred offering
costs |
|
— |
|
|
|
(5,032 |
) |
Net cash provided by financing activities |
|
2,035 |
|
|
|
120,050 |
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted
cash |
|
(278 |
) |
|
|
(16 |
) |
Net (decrease) increase
in cash, cash equivalents, and restricted cash |
|
(13,516 |
) |
|
|
113,364 |
|
Cash, cash equivalents, and
restricted cash at beginning of the period |
|
171,559 |
|
|
|
58,195 |
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
158,043 |
|
|
$ |
171,559 |
|
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
In this press release, we provide Adjusted EBITDA, a non-GAAP
financial measure that represents our net loss adjusted to exclude:
(1) depreciation and amortization; (2) stock-based compensation
expense; (3) other income (expense), net; (4) provision for income
taxes; (5) gain on sale of Design Manager; (6) one-time expenses
related to the sale of Design Manager; and (7) restructuring
charges. We also provide Adjusted EBITDA Margin, a non-GAAP
financial measure that presents Adjusted EBITDA divided by net
revenue. Below is a reconciliation of net loss, the most directly
comparable GAAP financial measure, to Adjusted EBITDA.
We have included Adjusted EBITDA and Adjusted EBITDA Margin,
which are non-GAAP financial measures, because they are key
measures used by our management team to help us to assess our
operating performance and the operating leverage in our business.
We also use these measures to analyze our financial results,
establish budgets and operational goals for managing our business,
and make strategic decisions. We believe that Adjusted EBITDA and
Adjusted EBITDA Margin help identify underlying trends in our
business that could otherwise be masked by the effect of the income
and expenses that we exclude from Adjusted EBITDA and Adjusted
EBITDA Margin. Accordingly, we believe that these metrics provide
useful information to investors and others in understanding and
evaluating our results of operations, enhances the overall
understanding of our past performance and future prospects, and
allows for greater transparency with respect to key financial
metrics used by our management in their financial and operational
decision-making. We also believe that the presentation of these
non-GAAP financial measures provides an additional tool for
investors to use in comparing our core business and results of
operations over multiple periods with other companies in our
industry, many of which present similar non-GAAP financial measures
to investors, and to analyze our cash performance.
The non-GAAP financial measures presented may not be comparable
to similarly titled measures reported by other companies due to
differences in the way that these measures are calculated. The
non-GAAP financial measures presented should not be considered as
the sole measure of our performance and should not be considered in
isolation from, or as a substitute for, comparable financial
measures calculated in accordance with GAAP. Further, these
non-GAAP financial measures have certain limitations in that they
do not include the impact of certain expenses that are reflected in
our consolidated statements of operations. Accordingly, these
non-GAAP financial measures should be considered as supplemental in
nature, and are not intended, and should not be construed, as a
substitute for the related financial information calculated in
accordance with GAAP. These limitations of Adjusted EBITDA and
Adjusted EBITDA Margin include the following:
- The exclusion of certain recurring,
non-cash charges, such as depreciation of property and equipment
and amortization of intangible assets. While these are non-cash
charges, we may need to replace the assets being depreciated and
amortized in the future and Adjusted EBITDA does not reflect cash
requirements for these replacements or new capital expenditure
requirements;
- The exclusion of other income
(expense), net, which includes interest income related to our cash
equivalents, interest expense, and realized and unrealized gains
and losses on foreign currency exchange; and
- The exclusion of stock-based
compensation expense, which has been a significant recurring
expense and will continue to constitute a significant recurring
expense for the foreseeable future, as equity awards are expected
to continue to be an important component of our compensation
strategy.
- The exclusion of gain on sale of Design
Manager, which is a one time sale of our wholly owned subsidiary,
as well as the related one-time expenses to sell the subsidiary
which include primarily legal fees.
- The exclusion of restructuring charges,
which are expenses from non-recurring employee severance and
benefits costs.
Because of these limitations, you should consider Adjusted
EBITDA and Adjusted EBITDA Margin alongside other financial
performance measures, including net loss and our other GAAP
results. The information in the tables below sets forth the
non-GAAP financial measures along with the most directly comparable
GAAP financial measures.
1STDIBS.COM,
INC.Reconciliation of Net Loss to Adjusted
EBITDA (Amounts in
thousands)(Unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(6,861 |
) |
|
$ |
(8,087 |
) |
|
$ |
(22,538 |
) |
|
$ |
(20,963 |
) |
Excluding: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
521 |
|
|
|
713 |
|
|
|
2,710 |
|
|
|
3,112 |
|
Stock-based compensation expense |
|
3,552 |
|
|
|
1,008 |
|
|
|
11,214 |
|
|
|
2,839 |
|
Other income, net |
|
(1,804 |
) |
|
|
(390 |
) |
|
|
(3,376 |
) |
|
|
(1,502 |
) |
Provision for income taxes |
|
37 |
|
|
|
21 |
|
|
|
37 |
|
|
|
21 |
|
Gain on sale of Design Manager |
|
— |
|
|
|
— |
|
|
|
(9,684 |
) |
|
|
— |
|
One-time expenses related to sale of Design Manger |
|
— |
|
|
|
— |
|
|
|
307 |
|
|
|
— |
|
Restructuring charges |
|
80 |
|
|
|
— |
|
|
|
660 |
|
|
|
— |
|
Adjusted EBITDA (non-GAAP) |
$ |
(4,475 |
) |
|
$ |
(6,735 |
) |
|
$ |
(20,670 |
) |
|
$ |
(16,493 |
) |
Divided by: |
|
|
|
|
|
|
|
Net revenue |
$ |
22,957 |
|
|
$ |
26,930 |
|
|
$ |
96,849 |
|
|
$ |
102,731 |
|
Adjusted EBITDA Margin
(non-GAAP) |
|
(19.5 |
)% |
|
|
(25.0 |
)% |
|
|
(21.3 |
)% |
|
|
(16.1 |
)% |
Grafico Azioni 1stdibs com (NASDAQ:DIBS)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni 1stdibs com (NASDAQ:DIBS)
Storico
Da Giu 2023 a Giu 2024