DIBS

1stdibs.com Inc

Consumer, TMT


Presented:10/11/2021
Price:$14.59
Cap:$0.55B
Current Price:$4.54
Cap:$0.18B

Presented

Date10/11/2021
Price$14.59
Market Cap$0.55B
Ent Value$1.14B
P/E RatioN/A
Book Value$4.48
Div Yield0%
Shares O/S37.82M
Ave Daily Vol274,621
Short Int6.70%

Current

Price$4.54
Market Cap$0.18B
1stdibs.com, Inc. operates as an online marketplace for home decorations, fashion, and interior design. Its business units include 1stdibs and Design Manager. It offers vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion. The company was founded by Michael Bruno and Laurence Forcione in 2000 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: 1stdibs.com Inc (DIBS), Alphabet Inc (GOOGL), RH (RH)

Highlights

The presenter is long shares of 1stdibs.com Inc (DIBS), which operates an online marketplace for vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion. The company was founded in 2000 as a listings business, but transitioned to a marketplace model in 2016 under current CEO David Rosenblatt, who was the CEO at DoubleClick when it was acquired by Google. Rosenblatt was brought on as CEO in 2011, and his involvement as well as his 5.65% stake in the company gives the presenter confidence that DIBS is looking to grow its business rather than simply maintaining its ~$400MM EV. This is a broken IPO story that went public in June 2021 at $20 per share and is currently trading at $14 per share following a disappointing Q3 guidance that management attributed to June GMV dynamics. Yet, at the current valuation, the presenter views this as a valuable two-sided marketplace business with 4,200 sellers, 69,000 active buyers, and a strong AOV ($2,500) trading at a reasonable valuation (4x consensus 2021 sales). Going forward, the three dynamics to focus on are DIBS’s underappreciated competitive advantages, its path to 30% long-term EBITDA margins, and its sustainable growth algorithm.

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Idea Discussion

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