1stdibs.com, Inc 10-Q for FY2021 Q3

1stdibs.com, Inc. (DIBS)

10-Q 2021-11-12 For: 2021-09-30

Added on April 06, 2026

About this 10-Q

1stdibs.com, Inc filed this 10-Q on November 12, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $25.58M; up 22.0% from $20.97M a year earlier
Net loss: $6.59M; compared with a net loss of $1.37M a year earlier
Diluted EPS: -$0.17; compared with -$0.47 a year earlier

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Delaware						94-3389618
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

51 Astor Place, 3rd Floor New York, New York						10003
(Address of Principal Executive Offices)						(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	DIBS	The Nasdaq Stock Market


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x


		Pages
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements (Unaudited):	7
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Operations	8
	Condensed Consolidated Statements of Comprehensive Loss	9
	Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	10
	Condensed Consolidated Statements of Cash Flows	12
	Notes to Unaudited Condensed Consolidated Financial Statements	13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33

Part II - Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 6.	Exhibits Index	65
Signatures		66


	September 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	167,094	$	54,862
Accounts receivable, net of allowance for doubtful accounts of $40 and $51 at September 30, 2021 and December 31, 2020, respectively	858		887
Prepaid expenses	5,162		1,603
Receivables from payment processors	4,008		3,052
Other current assets	1,400		3,665
Total current assets	178,522		64,069
Property and equipment, net	4,585		5,136
Goodwill	7,199		7,212
Intangible assets, net	1,212		1,352
Other assets	3,540		3,573
Total assets	$	195,058	$	81,342
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	3,713	$	4,548
Payables due to sellers	9,108		4,493
Accrued expenses	11,277		9,452
Other current liabilities	3,701		4,918
Total current liabilities	27,799		23,411
Other liabilities	3,247		3,352
Total liabilities	31,046		26,763
Commitments and contingencies (Note 14)
Redeemable convertible preferred stock (Series A, B, C, C-1, and D), $0.01 par value; zero and 57,771,864 shares authorized; zero and 19,243,795 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of zero and $301,300 as of September 30, 2021 and December 31, 2020, respectively	—		298,525
Stockholders’ equity (deficit):
Preferred stock, $0.01 par value; 10,000,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020	—		—
Common stock, $0.01 par value; 400,000,000 and 105,767,092 shares authorized as of September 30, 2021 and December 31, 2020, respectively; 37,873,700 and 11,376,048 shares issued as of September 30, 2021 and December 31, 2020, respectively; and 37,865,143 and 11,376,048 shares outstanding as of September 30, 2021 and December 31, 2020, respectively	379		114
Additional paid-in capital	424,260		—
Accumulated deficit	(260,395)		(243,858)
Accumulated other comprehensive loss	(232)		(202)
Total stockholders’ equity (deficit)	164,012		(243,946)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$	195,058	$	81,342


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended September 30, 2021


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from _________ to __________


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net revenue	$	25,576	$	20,970	$	75,801	$	57,989
Cost of revenue	7,515		6,318		21,861		19,263
Gross profit	18,061		14,652		53,940		38,726
Operating expenses:
Sales and marketing	12,863		8,544		35,652		26,037
Technology development	4,775		4,064		13,261		12,384
General and administrative	6,079		2,923		15,229		9,109
Provision for transaction losses	1,270		916		3,786		2,656
Total operating expenses	24,987		16,447		67,928		50,186
Loss from operations	(6,926)		(1,795)		(13,988)		(11,460)
Other income (expense), net:
Interest income	57		23		92		178
Interest expense	(3)		—		(12)		(10)
Other, net	285		402		1,032		357
Total other income (expense), net	339		425		1,112		525
Net loss before income taxes	(6,587)		(1,370)		(12,876)		(10,935)
Provision for income taxes	—		(2)		—		(3)
Net loss	(6,587)		(1,372)		(12,876)		(10,938)
Accretion of redeemable convertible preferred stock to redemption value	—		(3,827)		(7,061)		(11,232)
Net loss attributable to common stockholders	$	(6,587)	$	(5,199)	$	(19,937)	$	(22,170)
Net loss per share attributable to common stockholders—basic and diluted	$	(0.17)	$	(0.47)	$	(0.90)	$	(2.01)
Weighted average common shares outstanding—basic and diluted	37,832,796		11,042,883		22,066,629		11,017,101


		Three Months Ended September 30, 2021
	Common Stock			Additional Paid - In Capital			Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
			Shares			Amount
Balances as of June 30, 2021			37,803,179	$	378		$	423,202	$	(253,808)	$	(186)	$	169,586




Issuance of common stock for exercise of stock options			61,964	1			269		—		—		270

Stock-based compensation			—	—			789		—		—		789
Foreign currency translation adjustment			—	—			—		—		(46)		(46)
Net loss			—	—			—		(6,587)		—		(6,587)
Balances as of September 30, 2021			37,865,143	$	379		$	424,260	$	(260,395)	$	(232)	$	164,012


	Nine Months Ended September 30, 2021
	Redeemable Convertible Preferred Stock			Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balances as of December 31, 2020	19,243,795	$	298,525	11,376,048	$	114	$	—	$	(243,858)	$	(202)	$	(243,946)
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering	(19,243,795)	(305,586)		19,243,795	192		305,394		—		—		305,586
Issuance of common stock in connection with initial public offering, net of issuance costs of $14,762	—	—		6,612,500	66		117,422		—		—		117,488
Accretion of redeemable convertible preferred stock to redemption value	—	7,061		—	—		(3,400)		(3,661)		—		(7,061)
Issuance of common stock for acquisition of Design Manager	—	—		45,152	1		766		—		—		767
Issuance of common stock for exercise of stock options	—	—		551,983	6		2,223		—		—		2,229
Issuance of common stock for cashless exercise of warrants	—	—		35,665	—		—		—		—		—
Stock-based compensation	—	—		—	—		1,855		—		—		1,855
Foreign currency translation adjustment	—	—		—	—		—		—		(30)		(30)
Net loss	—	—		—	—		—		(12,876)		—		(12,876)
Balances as of September 30, 2021	—	$	—	37,865,143	$	379	$	424,260	$	(260,395)	$	(232)	$	164,012


	Three Months Ended September 30, 2020
	Redeemable Convertible Preferred Stock			Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balances as of June 30, 2020	19,243,795	$	290,835	11,042,225	$	110	$	—	$	(234,958)	$	(368)	$	(235,216)
Accretion of redeemable convertible preferred stock to redemption value	—	3,827		—	—		(221)		(3,606)		—		(3,827)
Issuance of common stock for exercise of stock options	—	—		1,281	1		4		—		—		5
Stock-based compensation	—	—		—	—		217		—		—		217
Foreign currency translation adjustment	—	—		—	—		—		—		59		59
Net loss	—	—		—	—		—		(1,372)		—		(1,372)
Balances as of September 30, 2020	19,243,795	$	294,662	11,043,506	$	111	$	—	$	(239,936)	$	(309)	$	(240,134)


	Nine Months Ended September 30, 2020
	Redeemable Convertible Preferred Stock			Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balances as of December 31, 2019	19,243,795	$	283,430	10,864,622	$	109	$	—	$	(219,086)	$	(245)	$	(219,222)
Accretion of redeemable convertible preferred stock to redemption value	—	11,232		—	—		(1,320)		(9,912)		—		(11,232)
Issuance of common stock for exercise of stock options	—	—		178,884	2		688		—		—		690
Stock-based compensation	—	—		—	—		632		—		—		632
Foreign currency translation adjustment	—	—		—	—		—		—		(64)		(64)
Net loss	—	—		—	—		—		(10,938)		—		(10,938)
Balances as of September 30, 2020	19,243,795	$	294,662	11,043,506	$	111	$	—	$	(239,936)	$	(309)	$	(240,134)


(in thousands)	September 30, 2021		September 30, 2020
Cash and cash equivalents	$	167,094	$	48,995
Restricted cash	3,333		3,335
Total cash, cash equivalents, and restricted cash	$	170,427	$	52,330


Cash paid at closing	$	2,513
Shares issued at closing	791
Cash to be paid at secondary anniversary of closing	640
Shares to be issued at secondary anniversary of closing	206
Total purchase consideration	$	4,150


Balance as of December 31, 2020	$	616
Billings	1,923
Revenue recognized	(1,630)
Balance as of September 30, 2021	$	909


(in thousands)	September 30, 2021		December 31, 2020
Internal-use software	$	15,757	$	14,625
Leasehold improvements	3,591		3,591
Furniture and fixtures	1,107		1,107
Computer equipment and software	848		753
Construction in progress	1,130		761
Total property and equipment, gross	22,433		20,837
Less: Accumulated depreciation and amortization	(17,848)		(15,701)
Total property and equipment, net	$	4,585	$	5,136


(in thousands)	September 30, 2021		December 31, 2020
Shipping	$	3,997	$	2,901
Payroll	2,580		2,297
Sales & use tax payable	1,541		1,787
Allowance for transaction losses	1,091		844
Payment processor fees	968		883
Allowance for eCommerce returns	391		406
Other	709		334
Total accrued expenses	$	11,277	$	9,452


	December 31, 2020
	Preferred Stock Designated	Preferred Stock Issued and Outstanding	Carrying Value		Liquidation Preference		Common Stock Issuable Upon Conversion
Series A redeemable convertible preferred stock	21,662,000	7,220,666	$	94,604	$	94,623	7,220,666
Series B redeemable convertible preferred stock	10,996,181	3,665,390	62,931		62,935		3,665,390
Series C redeemable convertible preferred stock	3,182,158	1,060,719	21,137		21,137		1,060,719
Series C-1 redeemable convertible preferred stock	5,966,682	1,988,891	35,089		35,098		1,988,891
Series D redeemable convertible preferred stock	15,964,843	5,308,129	84,764		87,507		5,308,129
	57,771,864	19,243,795	$	298,525	$	301,300	19,243,795


	Nine Months Ended September 30,
		2021	2020
Expected term in years		6.0	5.9
Expected stock price volatility		67.6%	48.0%
Risk-free interest rate		1.1%	0.5%
Expected dividend yield		—	—


	September 30, 2021	December 31, 2020
Conversion of outstanding shares of redeemable convertible preferred stock	—	19,243,795
Options to purchase common stock	4,051,401	3,170,321
Common stock warrants to purchase common stock	—	44,222
Shares to be issued to former Design Manager stockholders on second anniversary of closing	—	45,152
Shares available for future grant under the 2011 Plan	—	204,022
Shares available for future grant under the 2021 Plan	5,437,914	—
Shares available for future grant under the ESPP	800,000	—
Total	10,289,315	22,707,512


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2020	3,170,321	$	4.11	6.2	$	10,847
Granted	1,504,567	10.18
Exercised	551,983	4.04
Cancelled	71,504	7.16
Outstanding as of September 30, 2021	4,051,401	$	6.32	7.0	$	25,304
Options exercisable as of September 30, 2021	2,083,873	$	4.22	5.1	$	17,054
Options vested and expected to vest as of September 30, 2021	4,051,401	$	6.32	7.0	$	25,304


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share amounts)	2021		2020		2021		2020
Numerator:
Net loss	$	(6,587)	$	(1,372)	$	(12,876)	$	(10,938)
Accretion of redeemable convertible preferred stock to redemption value	—		(3,827)		(7,061)		(11,232)
Net loss attributable to common stockholders	$	(6,587)	$	(5,199)	$	(19,937)	$	(22,170)
Denominator:
Weighted average common shares outstanding—basic and diluted	37,832,796		11,042,883		22,066,629		11,017,101
Net loss per share attributable to common stockholders—basic and diluted	$	(0.17)	$	(0.47)	$	(0.90)	$	(2.01)


	September 30,
	2021	2020
Options to purchase common stock	4,051,401	3,569,278
Common stock warrants to purchase common stock	—	44,222
Redeemable convertible preferred stock (as converted to common stock)	—	19,243,795
	4,051,401	22,857,295


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2021		2020		2021		2020
GMV	$	109,211	$	87,156	$	330,276	$	236,599
Number of Orders	37,355		32,257		117,658		88,793
Active Buyers	71,783		53,057		71,783		53,057
Adjusted EBITDA (unaudited)	$	(5,372)	$	(462)	$	(9,758)	$	(5,746)


Exhibit No.						Description

3.1						Restated Certificate of Incorporation of 1stdibs.com, Inc. (incorporated by reference from Exhibit 3.1 filed with the registrant’s Current Report on Form 8-K filed June 14, 2021).


3.2						Amended and Restated Bylaws of 1stdibs.com, Inc. (incorporated by reference from Exhibit 3.2 filed with the registrant’s Current Report on Form 8-K filed June 14, 2021).


4.1						Specimen Common Stock Certificate (incorporated by reference from Exhibit 4.1 filed with the registrant's registration statement on Form S-1 (File No. 333-256188).
















31.1*						Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*						Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*#						Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*#						Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



101.INS						Inline XBRL Instance Document: the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set


*			Filed herewith.
#			In accordance with Item 601(b)(32)(ii) of Regulation S K and SEC Release No. 34 47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10 Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933 except to the extent that the Company specifically incorporates it by reference.


			1STDIBS.COM, INC.

			/s/ Tu Nguyen
Date: November 12, 2021			Tu Nguyen Chief Financial Officer (Principal Financial Officer)



By:			/s/ David S. Rosenblatt
Date: November 12, 2021			David S. Rosenblatt Chief Executive Officer



By:			/s/ Tu Nguyen
Date: November 12, 2021			Tu Nguyen Chief Financial Officer