Business
1stDibs Reports Second Quarter 2023 Financial Results
NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- 1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for luxury design products ("1stDibs" or the
About this update from 1stdibs.com, Inc.
[{"type":"text","content":"NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- 1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for luxury design products (\"1stDibs\" or the \"Company\"), today reported financial results for its second quarter ended June 30, 2023. Second Quarter 2023 Financial Highlights Net revenue was $20.9 million, a decrease of 15% year-over-year.Gross profit was $14.6 million, a decrease of 12% year-over-year.Gross margin was 69.8%, compared to 67.6% in the second quarter 2022.GAAP net loss was $8.3 million compared to a net loss of $0.3 million in the second quarter 2022, which included a $9.7 million gain on the Sale of Design Manager.Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(4.6) million and (21.9)%, respectively, compared to $(6.1) million and (24.7)%, respectively, in the second quarter 2022.Cash, cash equivalents and short-term investments totaled $145.9 million as of June 30, 2023. “Even as we continue to lay the groundwork for reaccelerating growth, we have made substantial progress in reducing our cost structure this quarter,” said David Rosenblatt, 1stDibs Chief Executive Officer. “Despite demand softness, many other indicators of marketplace health, like supply growth and organic traffic mix, remain strong.” Tom Etergino, Chief Financial Officer of 1stDibs said, “Over the past year we’ve taken numerous measures to re-engineer our cost base, delivering on our commitment to align expenses with demand. These actions substantially reduce our cash burn and continue to accelerate our path to profitability.” Other Recent Business Highlights and Second Quarter Key Operating Metrics In August 2023, 1stDibs' Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to $20.0 million of its common stock.In June 2023, we announced a workforce reduction designed to reduce operating costs and realign investment priorities involving the reduction of approximately 20% of the Company’s global workforce. As a result of the reduction, the Company incurred approximately $2.0 million in non-recurring restructuring charges.GMV was $89.9 million, a decrease of 14% year-over-year.Number of Orders was approximately 32K, a decrease of 9% year-over-year.Active Buyers was approximately 65K, a decrease of 6% year-over-year. Financial Guidance and Outlook The Company’s third quarter 2023 g...