1stdibs.Com, Inc. Q2 FY2025 earnings call

• Second quarter demonstrated continued resilience with GMV and revenue above midpoint of guidance and adjusted EBITDA exceeding high end. - 4% year-over-year decline in operating expenses. - Continued conversion growth for 7 consecutive quarters. - Product roadmap focused on accelerating organic traffic growth, optimizing ML pricing models, funnel optimization, integrating AI across functions, and steady listings growth. - Welcomed Bradford Shellhammer as Chief Marketing Officer and Chief Product Officer.

Net revenue was $22.1 million, flat year-over-year. Transaction revenue, tied directly to GMV, was approximately 75% of total revenue. Listings closed the quarter with nearly 1.9 million, up 3%. Unique sellers ended the quarter at approximately 5,900, down 21% year-over-year but flat sequentially. GMV modestly declined but the company gained market share in the contracting luxury home goods market. Average order value of nearly $2,600 was flat Y/Y, while median order values of approximately $1,350 were up 10%. Traffic had softening due to slowdown in paid, with over 70% from organic sources.

• Forecasts third quarter GMV of $83 million to $89 million, down 2% to up 5%. - Net revenue forecasted to be $21 million to $22.1 million, down 1% to up 4%. - Adjusted EBITDA margin loss expected to be 12% to 8%.

• Macro uncertainties affecting luxury home goods and U.S. housing market. - Vulnerability of organic traffic mix to AI-driven search results and chat interfaces.

Q: On the macro uncertainty, especially with the luxury home goods environment, any changes since the beginning of the year?

A: No major changes, U.S. housing market and luxury home goods market remain soft, but the company has gained market share over past 6 quarters based on product roadmap.

Q: How vulnerable is the over 70% organic traffic mix to AI-driven search results and chat interfaces?

A: They track it actively, haven't seen material impact yet, but are focused on AI and will report back as things change.