1stdibs.Com, Inc. (NASDAQ:DIBS) Q3 2023 Earnings Call Transcript

The most important of which is conversion, conversion in turn is driven by reducing purchase friction and also another focus of ours which is inducing our sellers to price items as competitively as possible.

Operator: [Operator Instructions]. Our next question coming from the line of Nick Jones with JMP Securities.

Unidentified Analyst : Hey, this is Luke on for Nick. So, you mentioned that the active buyer growth may be choppy near term. Could you just add any additional color on what needs to happen to re-accelerate the active buyer base heading into next year, particularly if stock demand persists? Thanks.

Tom Etergino: This is Tom. So, on active buyer growth — So, from the macro perspective, on active buyers, what we’re seeing is that it’s definitely pulled back. We are seeing the implications of the macros, the lower luxury housing market, the decline in the housing market, the decline in consumer discretionary spend, is impacting the total buyer growth. So that’s where we’re seeing the declines. It is mostly driven by those macros. As David said, what we’re starting to see on conversion is that it’s been improving over the last five quarters from the second derivative, as well the active buyers, it’s obviously been lowered because of our lower paid spend that we’ve been actively managing our paid spend down to reflect what we’re seeing in the macros and what we’re seeing in lifetime value relative to what we can spend against. So, that has been an ongoing focus of ours is to bring paid spend down to reflect what we’re seeing in the broader market.

Operator: Thank you. And at this time, I see we have no further questions in the queue. Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.