1stdibs.com (DIBS) AI Stock Analysis

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1stdibs.com

(NASDAQ:DIBS)

45Neutral

1stdibs.com faces significant profitability and cash flow challenges, reflected in its low financial performance and valuation scores. Despite positive earnings call sentiment and innovations, technical indicators are weak, contributing to a low overall score. The company's recovery hinges on improving operational efficiencies and capturing market share in the luxury home goods sector.

Positive Factors

Earnings

1stdibs.com, Inc. reported solid 4Q results, with both revenue and adjusted EBITDA beating consensus estimates.

Innovation

DIBS launched a machine learning-based pricing model for jewelry, offering more precise recommendations tailored to maximize conversion.

Shareholder Value

The company repurchased about $28.1 million of shares during 2024, which management believes is an attractive use of capital.

Negative Factors

Financial Performance

1stdibs.com, Inc. reported slightly softer-than-expected results on both the top and bottom lines, with guidance for 4Q also coming in below expectations.

Guidance

Guidance for 1Q25 came in a bit softer than expected on both the top and bottom line.

Market Conditions

Momentum DIBS saw in its business exiting 2024 was particularly encouraging given macro and industry headwinds.

1stdibs.com (DIBS) vs. S&P 500 (SPY)

Market Cap

$86.38M

Dividend YieldN/A

Average Volume (3M)114.46K

Price to Earnings (P/E)―

Beta (1Y)0.55

Revenue Growth4.22%

EPS Growth13.35%

CountryUS

Employees284

SectorConsumer Cyclical

Sector Strength63

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.50

Shares Outstanding35,694,130

10 Day Avg. Volume128,778

30 Day Avg. Volume114,464

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.19

Price to Cash Flow (P/CF)9.40

P/FCF Ratio9.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$8.00

Price Target Upside230.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

1stdibs.com Business Overview & Revenue Model

Company Description1stdibs.Com, Inc. operates an online marketplace for vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion products worldwide. The company offers online marketplace that enables commerce between sellers and buyers; and Design Manager, an online platform that provides software solution to interior designers. 1stdibs.Com, Inc. was incorporated in 2000 and is headquartered in New York, New York.

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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Negative

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price2.42

Price Trends

50DMA

3.41

Negative

100DMA

3.55

Negative

200DMA

4.00

Negative

Market Momentum

MACD

-0.26

Positive

RSI

27.19

Positive

STOCH

15.99

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 2.42 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 3.41, and below the 200-day MA of 4.00, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 27.19 is Positive, neither overbought nor oversold. The STOCH value of 15.99 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 (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	73 Outperform	$1.42B	28.85	12.04%	―	5.73%	81.83%
CHWY	73 Outperform	$14.34B	38.54	101.78%	―	6.40%	891.13%
ETSY	63 Neutral	$4.67B	18.39	-39.97%	―	2.18%	5.77%
Sector *	59 Neutral	$11.48B	10.33	-0.21%	4.02%	1.19%	-15.83%
REAL	49 Neutral	$554.56M	―	32.94%	―	9.32%	25.94%
DIBS	45 Neutral	$86.38M	―	-15.95%	―	4.22%	13.35%
W	30 Underperform	$3.42B	―	17.86%	―	-1.27%	38.07%

* Consumer Cyclical Sector Average

Performance Comparison

DIBS

1stdibs.com

2.42

-2.48

-50.61%

Wayfair

26.95

-29.47

-52.23%

ETSY

Etsy

43.60

-23.13

-34.66%

RVLV

Revolve Group

19.95

1.10

5.84%

CHWY

Chewy

34.66

18.09

109.17%

REAL

RealReal

4.98

1.87

60.13%

1stdibs.com Earnings Call Summary

Earnings Call Date: Feb 28, 2025 | % Change Since: -35.64% | 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.