Online luxury marketplace 1stDibs (DIBS) highlighted a return to growth and sustained profitability at the 17th Annual Midwest IDEAS Conference on Wednesday. The company, which went public in June 2021, reported a share price of $4.44 and a market capitalization of $150.6 million, up 67% over the past year but down 25% year-to-date.
For the second quarter, 1stDibs posted gross merchandise value (GMV) of $96 million, up 7% year-over-year, alongside revenue of $23 million. Adjusted EBITDA reached $1.3 million, yielding a 6% margin, while the contribution margin stood at approximately 65%. The company achieved adjusted EBITDA breakeven in the fourth quarter of the prior year and has maintained profitability for four consecutive quarters, though GAAP EBITDA remained negative at $10.84 million over the last twelve months.
The marketplace’s combined take rate—comprising commissions, subscription fees, and minimal advertising revenue—is about 25%. Average order value (AOV) stands at $2,850, with a median of $1,500, and lifetime sales since the launch of e-commerce exceed $3.3 billion. The platform lists roughly 2 million items valued at approximately $10 billion, with vintage and antique furniture accounting for about half of GMV. Jewelry represents the second-largest category, followed by art, contemporary furniture, and fashion.
1stDibs operates with a vetted network of 6,000 professional sellers and serves over 1.2 million buyers, 70% of whom are consumers—predominantly high-net-worth, female, and older demographics—while 30% are professional buyers, primarily interior designers. The combined fraud and return rate remains below 5%, compared to roughly 30% for average luxury fashion marketplaces. Notable transactions include the sale of a Norman Rockwell piece for $1.3 million to a first-time buyer, with historical orders exceeding $6 million.
Chief Executive David Rosenblatt emphasized the company’s focus on high-value sales, stating, "The race for the $50 order is over and Amazon and potentially Walmart have won that. The race for the $5,000 order is not over yet, and I believe that we have a right to win there." He added that 1stDibs has sustained adjusted EBITDA profitability as a public company for four consecutive quarters, a milestone achieved after four years of effort.
The company employs roughly 600 people, with half working in product and engineering. Machine learning initiatives include expanding shipping pre-quotes to 95% of items, monitoring price parity across listings, automating customer service requests, and enhancing homepage and email personalization. Advertising spend was reduced by 50% in the prior year’s fourth quarter and is now strictly evaluated against lifetime value thresholds. Google and Meta remain the primary traffic sources, and 1stDibs recently launched an influencer network, 1stDibs Tastemakers, targeting niche, high-credibility creators.
