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1stdibs.com (DIBS)
NASDAQ:DIBS
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1stdibs.com
(NASDAQ:DIBS)
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Rating:49Neutral
Price Target:
$3.00
▲(13.64% Upside)
1stdibs.com faces significant financial challenges with declining revenue growth and profitability issues, which heavily impact its overall score. While technical indicators are neutral, the negative valuation metrics further weigh down the score. The earnings call provided some positive insights into strategic progress and cost management, but these are overshadowed by broader market challenges and financial instability.
Positive Factors
Cost Management
Effective cost management can improve profitability and provide financial flexibility, supporting long-term business sustainability.
Organic Traffic Growth
High organic traffic reduces dependency on paid marketing, enhancing margins and indicating strong brand presence.
Conversion Rate Improvement
Continuous improvement in conversion rates suggests successful user engagement strategies, driving revenue growth.
Negative Factors
Declining Revenue Growth
Declining revenue growth can hinder the company's ability to scale and compete, affecting long-term market position.
Unique Sellers Decline
A decline in unique sellers may reduce product diversity and marketplace attractiveness, impacting future growth.
Negative Cash Flows
Sustained negative cash flows can strain liquidity and limit investment in growth initiatives, challenging financial health.
1stdibs.com (DIBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$95.69M
Dividend YieldN/A
Average Volume (3M)55.75K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth3.21%
EPS Growth-56.15%
CountryUS
Employees284
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.12
Shares Outstanding36,246,610
10 Day Avg. Volume69,048
30 Day Avg. Volume55,754
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.25
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit0.37
Enterprise Value/Ebitda-2.05
Forecast
1Y Price Target
$3.00Price Target Upside13.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 generates revenue primarily through a commission-based model. The company takes a percentage of each sale made on its platform, which incentivizes them to maintain a high-quality marketplace. Additionally, DIBS offers subscription services for dealers, allowing them to list their products on the site for a monthly fee, thus creating a steady revenue stream. The platform also engages in strategic partnerships with upscale brands and designers, which can enhance its visibility and attract more high-net-worth individuals to its marketplace. Advertising and promotional services for dealers seeking increased exposure on the platform further contribute to its earnings.
1stdibs.com Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with strong financial performance and strategic progress in areas like conversion growth, cost management, and product enhancements. However, challenges such as a decline in GMV, a soft luxury home goods market, and a decrease in unique sellers counterbalance the positive aspects.Q2-2025 Updates
Positive Updates
Exceeding Financial Guidance
GMV and revenue performed above the midpoint of guidance, and adjusted EBITDA exceeded the high end.
Continued Conversion Growth
The company reported conversion gains for the seventh consecutive quarter, reflecting continuous optimization efforts.
Cost Management Success
Operating expenses declined by 4% year-over-year, demonstrating effective cost management.
Organic Traffic Strategy
Over 70% of traffic originates from organic sources, driven by improvements in site performance and structure.
Enhanced User Experience
Refinements in the user experience and checkout process led to increased engagement and higher conversion rates.
Product Road Map Progress
Sustained progress across the product road map, enhancing both buyer and seller experiences and boosting market share.
Machine Learning Pricing Models
The rollout of machine learning-based pricing models across all verticals has shown promising results in increasing sell-through rates and reducing price negotiations.
Leadership Addition
Bradford Shellhammer joined as Chief Marketing Officer and Chief Product Officer, bringing relevant skills and experience.
Jewelry Segment Growth
Jewelry, accounting for approximately 20% of total GMV, increased by high single digits.
Negative Updates
GMV Decline
GMV modestly declined, with a deceleration in growth rates due to softening traffic and moderating average order value growth.
Luxury Home Goods Market Challenges
The luxury home goods market remained challenging, with demand softening as per syndicated credit card data.
Unique Sellers Decline
The number of unique sellers decreased by 21% year-over-year due to subscription pricing optimizations.
Soft Housing Market Impact
The soft housing market continued to impact home categories, specifically furniture and art.
Flat Net Revenue
Net revenue was $22.1 million, flat year-over-year.
Adjusted EBITDA Loss
Adjusted EBITDA loss was $1.8 million compared to a loss of $1.6 million last year.
Company Guidance
During the 1stdibs Q2 2025 earnings call, the company reported performance metrics that exceeded expectations, with GMV and revenue performing above the midpoint of guidance and adjusted EBITDA surpassing the high end. Operating expenses declined by 4% year-over-year, showcasing effective cost management. Despite a slight decline in GMV, the company gained market share in the contracting luxury home goods market. Conversion rates have increased for seven consecutive quarters, aided by product enhancements and a strategic focus on organic traffic growth, with over 70% of traffic originating from organic sources. The platform's average order value remained nearly flat at $2,600, while median order value increased by 10% to approximately $1,350. Listings grew by 3% to nearly 1.9 million, despite a 21% year-over-year decrease in unique sellers, attributed to subscription pricing optimizations. The company forecasts Q3 GMV of $83 million to $89 million and a net revenue of $21 million to $22.1 million, with an adjusted EBITDA margin loss of 12% to 8%.1stdibs.com Financial Statement Overview
Summary
1stdibs.com faces challenges in revenue growth and profitability, with consistent losses impacting financial performance. While the company maintains a strong gross profit margin and manageable debt levels, negative cash flows and returns on equity highlight the need for strategic improvements to achieve financial stability and growth.Income Statement
1stdibs.com has experienced declining revenue growth, with a negative growth rate of -11.3% in the TTM period. The company also faces profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively strong at 71.85%, suggesting efficient cost management at the gross level.45
Neutral
Balance Sheet
The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.22, indicating a manageable level of debt. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid equity base relative to total assets.50
Neutral
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, although there is a significant improvement in free cash flow growth. The free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net losses, but overall cash flow remains a concern.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.64M | 88.26M | 84.68M | 96.85M | 102.73M | 81.86M |
| Gross Profit | 63.72M | 63.43M | 59.71M | 67.18M | 70.56M | 55.91M |
| EBITDA | -11.53M | -13.18M | -17.81M | -17.24M | -17.81M | -6.48M |
| Net Income | -20.01M | -18.63M | -22.70M | -22.54M | -20.96M | -12.53M |
Balance Sheet | ||||||
| Total Assets | 138.57M | 145.76M | 180.81M | 195.80M | 192.25M | 81.34M |
| Cash, Cash Equivalents and Short-Term Investments | 95.62M | 103.88M | 139.32M | 153.21M | 168.23M | 54.86M |
| Total Debt | 20.76M | 22.16M | 21.92M | 24.45M | 0.00 | 0.00 |
| Total Liabilities | 43.71M | 46.45M | 46.53M | 47.77M | 34.82M | 325.29M |
| Stockholders Equity | 94.86M | 99.31M | 134.29M | 148.02M | 157.44M | -243.95M |
Cash Flow | ||||||
| Free Cash Flow | -3.10M | -3.53M | -15.35M | -29.88M | -6.64M | -5.27M |
| Operating Cash Flow | -2.44M | -2.91M | -13.56M | -27.91M | -4.40M | -3.44M |
| Investing Cash Flow | 12.86M | 22.29M | -100.23M | 12.64M | -2.27M | 1.29M |
| Financing Cash Flow | -10.77M | -30.71M | -3.63M | 2.04M | 120.05M | 1.56M |
1stdibs.com Technical Analysis
Negative
2.64
Price Trends
2.72
Negative
2.69
Negative
3.02
Negative
Market Momentum
0.01
Positive
39.06
Neutral
21.56
Neutral
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 2.64 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.72, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.56 is Neutral, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 41.65B | 20.14 | 45.99% | 1.25% | 3.05% | -10.82% | |
76 Outperform | 1.57B | 34.94 | 9.66% | ― | 10.68% | 37.84% | |
59 Neutral | 6.36B | 51.33 | -14.58% | ― | 2.38% | -38.88% | |
57 Neutral | 11.26B | -36.19 | 17.86% | ― | 0.87% | 54.67% | |
49 Neutral | $95.69M | ― | -19.50% | ― | 3.21% | -56.15% | |
44 Neutral | 303.46M | -1.51 | -74.55% | ― | -7.96% | -3078.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
DIBS
1stdibs.com
2.64
-1.77
-40.14%
FLWS
1-800 Flowers
4.77
-3.16
-39.85%
EBAY
eBay
91.14
27.06
42.23%
W
Wayfair
86.82
30.64
54.54%
ETSY
Etsy
64.18
8.65
15.58%
RVLV
Revolve Group
21.99
-2.79
-11.26%
1stdibs.com Corporate Events
Executive/Board ChangesShareholder Meetings
1stdibs.com Approves Key Proposals at Annual Meeting
Neutral
May 14, 2025
On May 8, 2025, 1stdibs.com, Inc. held its Annual Meeting of Stockholders, where two key proposals were approved. The first proposal involved the election of three Class I directors to serve until the 2028 annual meeting, and the second proposal ratified the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending December 31, 2025. These approvals are significant for the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.
The most recent analyst rating on (DIBS) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on 1stdibs.com stock, see the DIBS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.