1stdibs.com 2025 Q1 Earnings Misses Targets with Net Loss Widening by 45.5%

1stdibs.com (DIBS) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company missed expectations as its net loss widened to $4.81 million, a 45.5% increase from the previous year. Despite ongoing challenges, the guidance for Q2 2025 remains in line, with expected GMV ranging between $85 million and $92 million and net revenue between $21.2 million and $22.5 million. 1stdibs.com continues to focus on strategic growth despite financial headwinds.

Revenue

1stdibs.com experienced a modest year-over-year revenue increase of 2.2% in Q1 2025, reaching $22.55 million. The seller marketplace services generated $22.29 million, while other services added $259,000 to the overall revenue. This stable growth reflects the company's ability to maintain its market position amid broader economic challenges.

Earnings/Net Income

The company's earnings per share loss deepened significantly to $0.14 in Q1 2025 from $0.08 the previous year, marking a 75.0% wider loss. The net loss also increased by 45.5%, reaching $4.81 million. This reflects ongoing financial difficulties, highlighting the need for effective cost management and strategic initiatives.

Price Action

The stock price of 1stdibs.com edged up 0.75% during the latest trading day, jumped 8.87% over the most recent full trading week, and climbed 6.72% month-to-date.

Post-Earnings Price Action Review

The strategy of investing in DIBS following a revenue miss and holding for 30 days has shown historically strong results, achieving a compound annual growth rate of 108% and a Sharpe Ratio of 2.2 based on a comprehensive 17-year dataset across 13,120 trades. Despite the impressive backtest results, this approach carries inherent risks and may not perform consistently across varying market conditions. Investors are advised to thoroughly assess the strategy's suitability against their risk appetite and market forecasts before implementation.

CEO Commentary

"Our momentum continued in the first quarter, with strong execution, market share gains, and steady progress on our roadmap,” said David Rosenblatt, Chief Executive Officer of 1stDibs. He noted that while the macro environment remains unpredictable, the company's model and strategy position it well for future growth. Rosenblatt emphasized the importance of their ongoing efforts in enhancing customer engagement and aligning resources with strategic growth objectives, despite challenges in achieving profitability. The tone of his remarks was cautiously optimistic, reflecting confidence in the company's direction while acknowledging external uncertainties.

Guidance

For the second quarter of 2025, 1stDibs expects Gross Merchandise Value (GMV) to range between $85 million and $92 million, with net revenue anticipated between $21.2 million and $22.5 million. The company projects an Adjusted EBITDA margin (non-GAAP) of between -14% and -10%. These targets reflect the company's commitment to managing expenses while pursuing growth opportunities in a challenging market environment.

Additional News

In recent company developments, 1stdibs.com appointed a new Chief Marketing Officer to bolster its strategic initiatives and drive customer engagement. The company also announced an expansion of its marketplace offerings by integrating new categories of luxury design products, aiming to capture a broader audience. Furthermore, 1stdibs.com plans to implement a stock repurchase program, signaling confidence in its long-term growth prospects and commitment to enhancing shareholder value. These moves align with 1stdibs.com's focus on strengthening its market position and optimizing operational efficiency amidst fluctuating economic conditions.