1stDibs claims progress as 2024 wraps up with revenue, GMV and order gains
Online luxury marketplace 1stDibs ended 2024 with quarterly, full-year improvements in revenue, GMV and other key metrics.
NEW YORK—Online luxury marketplace 1stDibs is focused on “driving progress” after ending 2024 with net revenue increases in the fourth quarter and for the full year along with improved GMV.
David Rosenblatt, CEO, said, “2024 marked a turning point, highlighted by our highest gross merchandise value in three years in the fourth quarter. Market share gains and a return to revenue growth despite a challenging market are clear signals our strategy is working. We’re excited to continue driving progress in 2025.”
GMV for the fourth quarter was $94.5 million, an increase of 9% year-over-year, and orders increased by 7% to about 37,000. Active buyers also rose in the quarter by 6% to about 64,000.
Net revenue rose by 9% year-over-year in Q4 to $22.8 million, while full year gains were 4% year-over-year, ending at $88.3 million. Fourth quarter gross profit was up 10% to $16.5 million vs. the previous year and rose by 6% to$63.4 million for the year.
Gross margin for quarter was 72.3% vs. 71.5% in the same quarter a year earlier. The company’s full year gross margin was 71.9% vs. 70.3% for all of 2023.
“We achieved significant progress in 2024,” said Tom Etergino, chief financial officer, “reducing operating expenses for the second consecutive year and delivering our strongest adjusted EBITDA margins since becoming a public company.”
He added that 1stDibs’ focus for 2025 “remains on driving operating leverage and maintaining disciplined expense management.”
When asked during the earnings call about bringing adjusted EBITDA to even or positive, Etergino said sustained revenue growth and GMV growth will be the focus along with structuring expenses to get to a better bottom line.
GAAP net loss for the quarter was $5.2 million, up from a net loss of $2.9 million in Q4 2023. For the full year, net loss was $18.6 million, an improvement from a loss of $22.7 million in 2023. Loss per share for the Q4 was 14 cents and 49 cents per share for the year.
Non-GAAP adjusted EBITDA and adjusted EBITDA margin showed a loss of $1.6 million and 7.2%, respectively for the quarter, compared to a loss of $1.7 million and 8.1% in Q4 2023. For the year, non-GAAP adjusted EBITDA and adjusted EBITDA margin experienced a loss of $8 million and 9.1%, vs. a loss of $13.3 million and 15.8%, for the year ended Dec. 31, 2023.
The outlook for Q1 2025 is for GMV in the $90 million to $96 million range, with net revenue between $21.7 million and $22.8 million.
During the company’s earnings call, Rosenblatt said while he believes “the worst is behind us,” the pace of recovery for the marketplace remains uncertain. To address its vision for creating value, 1stDibs has developed a four-part roadmap for 2025, he said, focused on accelerating organic traffic growth, competitive pricing, optimizing the conversion funnel and improving the level of service.
The company is also continuing to apply machine learning to its pricing model to improve the business. The adoption of machine learning for pricing began with furniture, Rosenblatt said, and expanded into jewelry at the end of 2024. It is also being deployed for shipping, and is being considered for applications such as personalization and customer service.
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