1stdibs.Com, Inc. (NASDAQ:DIBS) Q3 2023 Earnings Call Transcript November 8, 2023 8:00 AM ET

Company Participants

Melanie Goins - General Counsel

David Rosenblatt - Chief Executive Officer

Thomas Etergino - Chief Financial Officer

Conference Call Participants

Trevor Young - Barclays

Ralph Schackart - William Blair

Operator

Good morning, ladies and gentlemen. Welcome to 1stdibs.com Inc. Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note, that today's conference is being recorded.

I would now hand the conference over to your speaker host today, Melanie Goins, General Counsel at 1stdibs.com. Melanie, you may begin.

Melanie Goins

Good morning, and welcome to 1stDibs earnings call for the quarter ended September 30, 2023. I'm Melanie Goins, General Counsel. Joining me today our Chief Executive Officer, David Rosenblatt; and Chief Financial Officer, Tom Etergino. David will provide an update of our business, including our strategy and growth opportunities, and Tom will review our third quarter financial results and fourth quarter outlook. This call will be available via webcast on our Investor Relations website at investors.1stdibs.com.

Before we begin, please keep in mind that our remarks include forward-looking statements, including, but not limited to, statements regarding guidance and future financial performance, market demand, growth prospects, business plans, strategic initiatives, evaluation of alternatives, business, and economic trends, including e-commerce growth rates and our potential responses to them, international opportunities and competitive position.

Our actual results may differ materially from those expressed or implied in these forward-looking statements as a result of risks and uncertainties, including those described in our SEC filings. Any forward-looking statements that we make on this call are based on our beliefs and assumptions as of today, and we disclaim any obligation to update them, except to the extent required by law.

Additionally, during the call, we'll present GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, which you can find on our Investor Relations website, along with the replay of this call. Lastly, please note that all growth comparisons are on a year-over-year basis, unless otherwise noted.

I'll now turn the call over to our CEO, David Rosenblatt. David?

David Rosenblatt

We delivered third quarter GMV and revenue at the midpoint of guidance and adjusted EBITDA margins above the high end. Over the past six quarters, we took decisive action to re-engineer our expense base, including actively managing headcount, increasing our performance marketing efficiency thresholds, divesting design manager, and most recently reducing our real estate footprint in New York City. These measures substantially lowered our cash burn, accelerating our path to profitability. The benefits of our leaner cost structure were on display this quarter. Operating expenses were down 20% gross margins increase from the high sixties to the low seventies adjusted EBITDA, a loss of $1.8 million improved by $3.7 million.