NEW YORK — 1stDibs.com, an online marketplace focused on luxury products, including furniture and art, saw net revenues fall 15% year-over-year to $23 million for the fourth quarter and to $96.8 million, or a 6% decline, for the full year ended Dec. 31.
Despite calling 2022 “a challenging environment for e-commerce,” CEO David Rosenblatt said 1stDibs “made significant progress on our strategic priorities, primarily auctions, international expansion, supply growth and improving our cost structure.”
In the company’s earnings call, Rosenblatt noted 2022 began on a high note, with record gross merchandise value (GMV) in the first quarter brought about by “pandemic-related e-commerce tailwinds.” However, those tailwinds turned to headwinds as consumers shifted their focus from online to offline and from buying goods to seeking services, he said. Other factors contributing to the slowdown included inflation and a softer housing market.
On the positive side, 1stDibs experienced strong registration growth, healthy traffic growth and record-high supply acquisition, Rosenblatt said. Listings were up 19% to 1.5 million, while the number of sellers rose to 7,300.
In September, the company implemented a restructuring plan to reduce operational costs and realign investment priorities that resulted in a 15% reduction in the company’s workforce. The reduction resulted in about $700,000 in non-recurring restructuring charges.
The company also sold in mid-2022 its 100% equity interest in Design Manager, an interior design project management and accounting software platform, which resulted in a net gain of $9.7 million on the purchase price of $14.8 million.
Gross profit at 1stDibs fell by 3% year-over-year to $16.2 million and by 5% for the full year ending at $67.2 million.
Orders for the quarter fell by 5% year-over-year to about 38,000, while active buyers — those who made at least one purchase within the 12-month period presented — topped out at about 68,000, a 7% year-over-year decline. GMV was $104 million, down 11% year-over-year.
Tom Etergino, chief financial officer, said the expense reductions during the year “delivered our second quarter of sequential adjusted EBITDA margin improvement. In 2023, we will remain focused on improving efficiency while making selective investments in areas of business showing strong potential, like auctions and international expansion.”
The company’s first-quarter guidance puts GMV between $93 million and $100 million and net revenue between $21.4 million and $22.5 million.