1stdibs.Com, Inc. (NASDAQ:DIBS) Q4 2022 Earnings Call Transcript

David Rosenblatt: Sure. So I’ll take the first question and then turn it over to Tom for the second one. There’s another statistic by the way, just to add to the two that you mentioned on supply growth that we’re pleased with, which is our retention rate, which was at an all-time high in the fourth quarter as well. And I think that really does speak to your question. Look, in general, relative to other marketplaces, we have a kind of lower velocity and lower sell-through rate, right? This is a long sales cycle market. So sellers don’t join with the expectation that they’re going to sell a lot immediately. It’s really a process of adding supply. And what we’ve seen over the many years we’ve been in this business is that the more supply that’s added by sellers, the more they sell.

So our primary focus right now, especially with sellers who joined under our pricing test is to encourage them to sell – to list more. The – currently, to date, they have not listed at the same rate as our pre-existing sellers. However, we’re making a lot of concentrated efforts in that area, and we have seen improvements over the last couple of months. So we need to continue to do that. And if we’re able to do that, the sellers will sell more.

Thomas Etergino: On the OpEx side, this is Tom. So as you mentioned, in 2022, we did take a lot of actions in rightsizing our cost structure for demand. We reduced the number of open roles. We limited our hiring to critical positions. We increased our efficiency targets on our performance marketing spend. And we also had the difficult decision of reducing headcount in Q3. And we are starting to see the impact of that in our results in Q4, as you can see. To your point, right now, we continue to be committed to kind of rationalizing our cost base to demand. And we’re going to continue to take actions if the demand does not rebound. But as I sit here today, we’re comfortable with our 2023 plan. If we veer off of that plan, we will take corrective actions.

Ralph Schackartv: Okay, great. Thank you.

Operator: Thank you. And with that, ladies and gentlemen, I will conclude the Q&A session and today’s conference. Thank you all for participating, and you may now disconnect. Good day.+