1stdibs Q1 2025: Unraveling Contradictions in Organic Growth, AI Pricing, and Market Share

Organic traffic growth and churn normalization, implementation and adoption of AI pricing models, trends in organic traffic and conversion rates, expectations for churn and seller growth, and market share gains are the key contradictions discussed in 1stdibs' latest 2025Q1 earnings call.



GMV and Revenue Growth:
- 1stdibs reported GMV of $94.7 million in Q1 2025, up 3% year-over-year.
- The growth was driven by ongoing conversion improvements, higher average order value, and disciplined expense management.

Market Share Gains:
- The company gained market share in the luxury furniture market for the fifth consecutive quarter.
- This was attributed to product development efforts, enhanced user experience, and improved seller engagement.

Conversion Rate Trends:
- 1stdibs achieved six consecutive quarters of year-over-year conversion rate growth, with a conversion rate over 10% higher than in Q1 2023.
- The focus on improving conversion rates, driven by product development and optimization, led to this positive trend.

Organic Traffic and Pricing Strategy:
- The company saw a return to organic traffic growth in Q1, with over 70% of traffic coming from organic sources.
- The implementation of machine learning-based pricing models and competitive pricing strategies contributed to increased organic traffic and conversion rates.

Active Buyers and Conversion Impact:
- 1stdibs ended the quarter with approximately 64,800 active buyers, up 7% year-over-year and 1% sequentially.
- The increase in active buyers is a direct result of improvements in conversion rates, driven by strategic product development and optimization efforts.