Can DIBS sustain its Q4 earnings momentum?

**1stdibs.com (DIBS) faces challenges in sustaining its Q4 earnings momentum.** Here's why:

1. **Revenue Growth**: While DIBS has shown year-over-year revenue growth for the second consecutive quarter, the growth rate has been slow, with a 9% increase in Q4 revenue. This is relatively low compared to the potential of the luxury e-commerce market.
2. **Earnings Performance**: The company has reported a net loss of $5.7 million for Q3 2024, with a decrease in gross profit margin from 73.3% in Q3 2023 to 71.0% in Q3 2024. The adjusted EBITDA margin was negative at -14.1% for Q3 2024, indicating significant operational pressures.
3. **Insider Activity**: There have been several instances of insider selling, including by Matthew Rubinger, the Chief Commercial Officer, who sold 8,133 shares on March 18, 2025. Insider selling can be a signal to investors about the confidence that insiders have in the company's future performance.
4. **Market Conditions**: The luxury market is facing challenges, with a soft luxury housing market impacting demand for high-end furnishings. This is a cyclical issue that may affect DIBS's performance in the near term.
5. **Financial Position**: DIBS has a negative net margin of 18.94% and a negative return on equity of 13.55%, indicating that the company is not profitable as of the latest report period. The company's market cap is $104.79 million, with a price-to-earnings ratio of -7.05, suggesting that the stock is not attractive to investors from a valuation perspective.

In conclusion, while DIBS has made progress in some areas, such as achieving year-over-year revenue growth and sequential improvement in active buyers, the negative margins, insider selling, and challenging market conditions suggest that sustaining Q4 earnings momentum could be difficult. The company will need to address these issues and demonstrate significant improvements in profitability and market positioning to achieve sustained earnings growth.