What changed in this filing

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Item 1. Business

2025-03-03 compared with 2024-02-29 · 103 added, 141 removed, 177 unchanged (58% of the section changed)

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We are one of the world’s leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion.

We believe we are a leading online marketplace for these luxury design products based on the aggregate number of such listings on our online marketplace and our Gross Merchandise Value (“GMV”).

Our thoroughly vetted seller base, in-depth marketing content, and custom-built technology platform create trust in our brand and facilitate high-consideration purchases of luxury design products online.

By disrupting the way these items are bought and sold, we are both expanding access to, and growing the market for, luxury design products.

We believe we are a leading online marketplace for these luxury design items based on the aggregate number of listings on our online marketplace and our Gross Merchandise Value (“GMV”).

Our sellers, who undergo an evaluation by our in-house experts to vet the integrity of their listings, in-depth marketing content, and custom-built technology platform create trust in our brand and facilitate high-consideration purchases of luxury design items online.

By disrupting the way these items are bought and sold, we are both expanding access to, and growing the market for, luxury design.

1stDibs began over two decades ago with the vision of bringing the magic of the Paris flea market online by creating a listings site for top vintage and antique furniture sellers.

The quality of our initial seller base enabled us to build a reputation in the design industry as a trusted source for unique luxury design products.

Since then, we have strengthened our brand and deepened our seller relationships.

The quality of our initial seller base enabled us to build a reputation in the design industry as a trusted source for unique luxury design.

Since then, we have strengthened our brand as well as deepened and broadened our seller relationships.

We launched our e-commerce platform in 2013 and transitioned to a full e-commerce marketplace model in 2016.

We had 7.0 million users and approximately 1.8 million listings as of December 31, 2024, compared to 6.3 million users and approximately 1.7 million listings as of December 31, 2023.

Users represent non-seller visitors who register on our website, including both buyers and prospective buyers, and are identified by a unique email address.

Users represent non-seller visitors who register on our website and include both buyers and prospective buyers identified by a unique email address.

Our online marketplace seller stock value, the sum of the stock value of all available products listed on our online marketplace, was consistent year over year and exceeded $10.0 billion as of both December 31, 2024 and 2023.

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As of December 31, 2024, we had approximately 5,900 unique sellers, compared to approximately 7,800 unique sellers as of December 31, 2023.

This metric was updated from the previously disclosed seller accounts metric as we believe unique sellers is a more useful measure of our seller base.

This differs from seller accounts, which counts a unique seller multiple times if that seller has sales in multiple verticals.

In 2024, we shifted our seller acquisition strategy and monetization approach to concentrate on fewer, but more highly engaged sellers.

We discontinued the pricing option with no monthly subscription fees and higher commission rates during the year which contributed to the seller churn.

We provide our sellers, the vast majority of which are small businesses, access to a global community of buyers and a platform to facilitate e-commerce at scale.

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We provide our buyers a trusted purchase experience with our user-friendly interface, dedicated specialist support, and our 1stDibs Promise, our comprehensive buyer protection program outlined in-depth below.

The uniqueness, diversity, and high quality of the items on our online marketplace, together with an active marketing effort, have produced a large global base of design-loving buyers.

We operate an asset-light business model which allows us to scale in a capital efficient manner.

While we enable shipping and fulfillment logistics, we do not take physical possession of the items sold on our online marketplace.

The uniqueness, diversity, and high quality of the products on our online marketplace, together with an active marketing effort, have produced a large global base of design-loving buyers.

Our user-friendly interface, dedicated specialist support, and 1stDibs Promise enable a trusted purchase experience.

Despite the growth on the seller side, we experienced year-over-year decreases in GMV, net revenue, and certain key buyer metrics as we believe they have been adversely impacted, both directly and indirectly, by macroeconomic factors, including significant capital market volatility, significant housing market volatility, rising interest rates, inflation, global economic and geopolitical developments, and changing consumer behavior in a post-COVID-19 environment;

however, these impacts are difficult to isolate and quantify.

During the year ended December 31, 2023, we had approximately 61,000 Active Buyers, compared to approximately 68,000 in the year ended December 31, 2022.

We define Active Buyers as buyers who have made at least one purchase through our online marketplace during the 12 months ended on the last day of the period presented, net of cancellations.

We plan to continue to invest strategically in growth initiatives to be prepared if and when macroeconomic conditions improve.

We had an on-platform average order value (“AOV”) of above $2,600 and $2,700, and a median order value (“MOV”) of approximately $1,200 and $1,300 in the years ended December 31, 2023 and 2022, respectively.

We do not focus on AOV or MOV as key metrics in evaluating our business given our priority to make unique, high-end design items across various price points available through our online marketplace.

During the year ended December 31, 2024, we had approximately 64,300 active buyers, compared to approximately 61,000 in the year ended December 31, 2023, who are buyers who have made at least one purchase through our online marketplace during the 12 months ended on the last day of the period presented, net of cancellations (“Active Buyers”).

We had an on-platform average order value (“AOV”) of approximately $2,500 and $2,600 in the years ended December 31, 2024 and 2023, respectively.

We had a median order value (“MOV”) of approximately $1,200 in both the years ended December 31, 2024 and 2023.

We do not focus on AOV or MOV as key metrics in evaluating our business given our priority to make unique, high-end design items available across various price points through our online marketplace.

The percentage of Active Buyers who make more than one purchase in any given year has been generally consistent from year to year and comprised approximately 30% of total Active Buyers in each of the years ended December 31, 2024 and 2023.

Highly experienced interior designers, whom we refer to as Trade Buyers, are frequent, repeat purchasers on our online marketplace and accounted for 31% and 32% of our on-platform GMV in the years ended December 31, 2023 and 2022, respectively.

Highly experienced interior designers, whom we refer to as Trade Buyers, are frequent, repeat purchasers on our online marketplace and accounted for 31% of our on-platform GMV in each of the years ended December 31, 2024 and 2023, respectively.

Through our Trade 1st program, we offer these Trade Buyers, who comprise a subset of our buyers, additional benefits such as trade-only personalized support, exclusive trade pricing, and buyer incentives for which members do not pay any fees to participate in this program.

As our online marketplace has scaled, we have created powerful network effects, with better supply attracting more buyers and more buyers encouraging high-quality sellers to join and remain on our platform.

Once in motion, the flywheel effect of this network enhances both seller and buyer quality, which we believe produces a competitive advantage.

We are driving consumer demand for luxury design products online by providing global access to a traditionally fragmented, local, and offline market.

As sellers and buyers of luxury design products gain experience transacting online, we believe our combination of technology, service, and brand positions us to enable and grow this market by providing sellers and buyers the tools and access they need.

We are driving consumer demand for luxury design items online by providing global access to a traditionally fragmented, local, and offline market.

As sellers and buyers of luxury design gain experience transacting online, we believe our combination of technology, service, brand positions and demand generation enable us to grow this market by providing sellers and buyers the tools and access they need.

We believe our proprietary technology platform enables a purchase funnel that is more robust and interactive than the conventional e-commerce experience.

The discovery and transaction process in our industry is more complex than in most e-commerce categories.

Specifically, transacting in unique luxury design products requires the ability for sellers and buyers to exchange messages, negotiate prices, arrange customized shipping support, and pay swiftly and securely through various payment methods.

Specifically, transacting in unique luxury design requires the ability for sellers and buyers to exchange

messages, negotiate prices, arrange customized shipping support, and pay swiftly and securely through various payment methods.

Our platform turns this complex order flow into an easy-to-use process and converts the valuable data we collect from buyers’ browsing and purchase activity into actionable insights for both sellers and buyers.

Our platform is scalable, which we believe enables us to efficiently drive expansion into new geographies and verticals while supporting the creation and development of new applications.

Our platform is scalable, which we believe enables us to grow over time.

We empower buyers to engage directly with sellers on our platform throughout all stages of a transaction.

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Our Market Opportunity

We connect sellers and buyers in what has historically been a fragmented and highly localized global market for unique luxury design products.

We connect sellers and buyers in what has historically been a fragmented and highly localized global market for unique luxury design items.

This market has generally operated offline, functioning mostly through independent galleries, boutiques, and auction houses, thereby restricting a seller’s potential buyer audience and limiting a buyer’s product selection.

These offline operations create barriers to both new supply and new demand, limiting the market’s overall growth potential.

We created a single online marketplace that consolidates previously fragmented sellers and buyers on a global scale.

We created a single online marketplace that consolidates previously fragmented sellers and buyers globally.

We believe our online marketplace, powered by our technology platform, has transformed almost all dimensions of the luxury design buying experience by increasing accessibility and enhancing selection and convenience.

Global Luxury Market

Our core market, including high-quality design furniture and homewares, fine art, watches and jewelry, was estimated to be approximately $198 billion in 2023, according to Bain & Company.

Our platform is built on a scalable infrastructure that allows us to enter adjacent luxury markets and expand our addressable market with minimal additional investment.

The personal luxury goods market, as defined by Bain & Company, excluding watches and jewelry, was estimated to total approximately $283 billion in 2023 and includes adjacent categories, such as footwear, leather goods, apparel, and beauty.

Combining our core market of high-quality design furniture and homewares, fine art, and watches and jewelry with the personal luxury goods market (excluding watches and jewelry), results in an estimated total addressable market size of $481 billion as of 2023.

Expanding the Luxury Goods Market

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and (2) growing the luxury design buyer base by introducing our online audience to unique products previously only accessible via in-person galleries, boutiques, and auction houses.

In the year ended December 31, 2023, we increased the number of unique sellers on the platform to approximately 7,800 from approximately 5,600 as of December 31, 2022, as well as launched localized sites in Italy and Spain.

We have sold items on our online marketplace ranging from less than $100 to over $1 million, demonstrating that high-end luxury design products are attainable and within reach of the expanding buyer audience we are attracting to the market.

We have sold items on our online marketplace ranging from less than $100 to over $1 million, demonstrating that high-end luxury design items are attainable and within reach of the expanding buyer audience we are attracting to the market.

Increasing Online Penetration

One of the most significant trends driving online penetration in the luxury goods market is an increasingly digitally native customer base.

Bain & Company estimates that online personal luxury goods purchases will continue to grow, reaching up to 30% of total sales by 2025.

According to Bain & Company, Gen-Y, Gen-Z and, Gen-Alpha, born during 1981-1995, 1996-2015, and kids born after 2016, respectively, are expected to account for nearly 85% of luxury spend by 2030.

Spending by Gen-Z and Gen-Alpha, will grow three times faster than previous generations, making up one third of purchases in the luxury goods market by 2030.

These generations are leading the shift from offline to online commerce and will soon dominate the luxury goods market’s customer base.

During the year ended December 31, 2023, we increased the number of unique sellers on the platform to approximately 7,800 from approximately 5,600 as of December 31, 2022, while the number of listings grew from over 1.5 million as of December 31, 2022 to approximately 1.7 million as of December 31, 2023.

Additionally, we had 6.3 million users as of

December 31, 2023, compared to 5.5 million users as of December 31, 2022.

We believe these metrics are indicative of our online penetration in the luxury goods market, despite the macroeconomic issues affecting GMV and net revenue.

We hosted approximately 1.8 million listings as of December 31, 2024, compared to approximately 1.7 million listings as of December 31, 2023.

Additionally, we had 7.0 million users as of December 31, 2024, compared to 6.3 million users as of December 31, 2023.

The 1stDibs Marketplace

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Trust in our online marketplace is critical to facilitating online transactions of purchases with high price points.

During each of the years ended December 31, 2023 and 2022, over 20% of our on-platform GMV was generated from orders with an item value above $15,000 and approximately 5% and 4% for orders with an item value of $100,000 or more for the years ended December 31, 2023 and 2022, respectively.

Our thorough seller vetting process inspires buyer confidence in our sellers and in the quality of the luxury design products sold on 1stDibs.

For the years ended December 31, 2024 and 2023, approximately 3% and 5% of orders had an item value of $100,000 or more, respectively.

Our seller onboarding process which includes our in-house experts evaluating the integrity of sellers’ listings inspires buyer confidence in our sellers and in the quality of the luxury design items sold on 1stDibs.

Extensive fraud protection and secure payment solutions further establish the trust sellers and buyers have in our online marketplace.

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Our 1stDibs Promise gives our buyers peace of mind with every purchase by providing the following features and commitments:

• a community of thoroughly vetted sellers from around the world to ensure high-quality products;

• a Money-Back Guarantee if a purchased item is not as described, is damaged in transit, or does not arrive, a buyer can contact us within 7 days, or longer for Trade Buyers, for a full refund.

• a community of sellers from around the world to ensure high-quality products;

• confidence at checkout with multiple secure payment options and a comprehensive fraud protection and prevention program;

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• worry-free cancellations within 24 hours;

• the ability to work with both parties in the event a buyer receives an item that is different than described or has been damaged in transit to resolve the issue;

• a Price-Match Guarantee to ensure that if a buyer finds a 1stDibs seller that has the same item for a lower price elsewhere, 1stDibs will match it;

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We believe that creating a digital presence and enabling access to buyers across the globe allows us to expand the addressable market for luxury sellers.

Expanding a seller’s ability to share its story across various forms of media, including text, photographs, and videos, significantly increases buyer engagement and conversion.

Expanding a seller’s ability to share their story across various forms of media, including text, photographs, and videos, significantly increases buyer engagement and conversion.

Once sellers are added to our online catalog, we help build sellers’ online presence through editorial and social placements, including our online magazine Introspective , which offers sellers additional avenues through which to advertise online.

• Online Presence:

We help sellers establish an online presence on our online marketplace.

• Digital Presence:

We help sellers establish a digital presence on our online marketplace.

Sellers can customize their listings on 1stDibs by uploading biographies, item descriptions, photos, videos, and content to distinguish themselves.

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We provide sellers with a comprehensive suite of seller tools, education, and analytics, including reporting, tracking, and inside perspectives on pricing based on the historical sales of similar items.

Sellers also benefit from our proprietary algorithms and targeting technologies to connect with both consumers and Trade Buyers.

Sellers also benefit from our proprietary algorithms and targeting technologies to connect with both Consumer and Trade Buyers.

• Listing & Pricing:

We empower sellers with tools useful for them to control item pricing and item visibility on our online marketplace.

Sellers can leverage our proprietary classification methodologies and structured data to

create listings tailored to their inventory.

Sellers can leverage our proprietary classification methodologies and structured data to create listings tailored to their inventory.

We have created a pricing index, “1stDibs Insider,” which provides pricing guidance to our sellers based on historical pricing trends.

By providing historical pricing data for similar items that have recently sold, we believe this helps sellers price items more competitively.

We have also invested in artificial intelligence and machine learning to help our sellers with pricing guidance.

On our platform, sellers can set item pricing based on user type (Consumer vs.

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We also provide sellers purchase format flexibility beyond the standard list price model.

Sellers can choose to list items without price using the “Price Upon Request” purchasing format, or allow buyers to bid on their favorite items with 1stDibs Auctions.

Sellers can choose to list items without a price using the “Price Upon Request” purchasing format.

Furthermore, sellers can review, accept, or counter-offer negotiation requests, or create “Private Offers” for prospective buyers and “Automated Private Offers” (preset and triggered by buyer behavior).

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Our sellers can efficiently scale their businesses without the friction associated with in-person sales and multiple third-party platforms.

The ability to offer a convenient, seamless transaction experience, including on-platform communications and a wide range of payment solutions, such as credit card, PayPal, Apple Pay, Automated Clearing House (“ACH”), and wire further drives buyer conversion.

We maximize Search Engine Optimization (“SEO”) to help buyers find items and connect with our sellers, allowing them to purchase products tailored to their tastes and preferences with ease.

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Our buyer services include:

• Largest Selection of Unique Luxury Design Products:

We offer one of the largest online selection of luxury design products from leading sellers and makers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion.

We believe our growing collection of approximately 1.7 million luxury design products is unmatched and makes us the premier destination for design lovers and enthusiasts.

Luxury design products tend to retain value over time as a result of their scarcity and durability.

• Largest Selection of Unique Luxury Design Items:

We offer one of the largest online selections of luxury design items from leading sellers and makers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion.

We believe our growing collection of approximately 1.8 million luxury design items is unmatched and makes us the premier destination for design lovers and enthusiasts.

Luxury design tends to retain value over time as a result of their scarcity and durability.

We aggregate supply from a large number of globally distributed sellers, offering buyers an online destination to access a variety of luxury products across the globe.

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We have developed tools to facilitate communication between sellers and buyers and have added incentives for sellers to respond quickly.

The majority of our sellers respond to inquiries in less than two hours.

Negotiation is a common purchase format in our verticals;

Buyers can negotiate via the “Make Offer” experience, and also receive a personalized “Private Offer” after initiating a conversation with a seller or “favoriting” an item.

Additionally, buyers have the option to bid on items listed with 1stDibs Auctions.

During the year ended December 31, 2024, the majority of user sessions came to our online marketplace via a mobile device, either by browsing our mobile site or by using our highly rated mobile app.

The bulk of our users are browsing via our mobile site.

Our mobile app users take advantage of app-specific features, including local shopping, personalized notifications, and the ability to “see” items in their homes via our augmented reality feature.

While mobile app sessions only make up approximately 5% of total sessions during the year ended December 31, 2023, they accounted for approximately 16% of total order volume.

Our mobile app users take advantage of app-specific features, personalized notifications, and the ability to “see” items in their homes via our augmented reality feature.

• Personalization:

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• Curated Assortment:

We are a highly sought after destination for unique, high-quality luxury design products.

Thoroughly vetting all sellers on our online marketplace supports our buyers’ desire for quality and curation, thereby reducing their search time and purchase risk.

We are a highly sought after destination for unique, high-quality luxury design items.

We provide buyers with design inspiration through our expertly merchandised collections and our online editorial publication Introspective .

• Quality of Experience:

Unlike conventional offline alternatives, we offer our buyers convenient 24/7 access to approximately 1.7 million luxury design products.

Unlike conventional offline alternatives, we offer our buyers convenient 24/7 access to approximately 1.8 million listings.

Multiple possible payment methods offer our buyers a convenient checkout experience compared to traditional offline retail channels by removing complexity and introducing transparency to the purchasing process.

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Our client service associates help ensure the satisfaction of sellers and buyers by addressing and assisting in the resolution of questions relating to orders, deliveries, returns, and disputes.

For certain individual Consumers or Trade Buyer, respectively, we provide support at the individual level through our Private Client and Trade Services to provide a seamless buying process.

For certain individual Consumers or Trade Buyers, respectively, we provide support at the individual level through our Private Client and Trade Services to provide a seamless buying process.

Our Growth Strategies

Expand Our Buyer Base

We are focused on continuing to grow our buyer base and believe we are still in the early stages of introducing a unique and growing supply of luxury design products to a much broader audience.

We are focused on continuing to grow our buyer base and believe we are still in the early stages of introducing a unique and growing supply of luxury design items to a much broader audience.

Of our 7.0 million users as of December 31, 2024, we estimate based on the available information provided by our users that approximately 64% are U.S.-based and 36% are international, which represents approximately 1% penetration of the U.S.

population and less than 1% of the international population.

As of December 31, 2022, of our 5.5 million users, we estimated that approximately 67% were U.S.-based and 33% were international.

As of December 31, 2023, 20% of buyers are located internationally, compared to 18% from December 31, 2022.

To date, we have primarily grown our current buyer base organically through word-of-mouth, mentions in the press, and earned media.

In addition to continued organic growth, we believe we can significantly increase our buyer base by utilizing targeted, data-driven marketing efforts that generate meaningful returns.

We believe we can continue to expand our buyer audience across a wide swath of buyer demographics including income, geography, and age, as well as level of design experience and design preference.

As of December 31, 2023, we estimated that approximately 66% of our 6.3 million users were U.S.-based and 34% were international.

Approximately 20% of our buyers are located internationally as of both December 31, 2024 and 2023.

To date, we have primarily grown our current buyer base organically through word-of-mouth, mentions in the press, and earned media, as well as paid media, promotions, and third party partnerships.

We believe we can significantly increase our buyer base by utilizing targeted, data-driven marketing efforts that generate meaningful returns.

We believe we can continue to

expand our buyer audience across a wide swath of buyer demographics including income, geography, and age, as well as level of design experience and design preference.

Grow Our Marketplace Supply

We intend to further increase the supply on our online marketplace while maintaining our thorough seller vetting process, by offering a captivating value proposition and enhanced item listing tools, adding new inventory from existing sellers, and growing the range of sellers from whom we source.

We intend to further increase the supply on our online marketplace by offering a captivating value proposition and enhanced item listing tools, adding new inventory from existing sellers, and growing the range of sellers from whom we source.

We continue to enhance our value proposition for sellers by providing broad and growing access to a global base of design-minded buyers and a platform with a comprehensive suite of tools that help our sellers successfully transact and scale their business.

This value proposition drives sellers to our online marketplace, deepens the breadth of our inventory, and helps attract new buyers.

As of December 31, 2023, the number of unique sellers grew to approximately 7,800 from approximately 5,600 as of December 31, 2022.

We may also choose to expand our network of sellers inorganically, either through acquisitions of, or partnerships with, companies or design brands.

Pursue New Product Verticals and Diversification Opportunities

We have demonstrated our ability to successfully grow and diversify beyond our original offering of vintage furniture, as exemplified by our proven track record of expanding both across verticals, such as art, jewelry, and fashion, and within verticals, such as the expansion from vintage and antique furniture to include new and custom furniture.

Adding verticals has several benefits, including increasing our addressable market, the number of sellers and buyers, and purchasing frequency, and offering our buyers a wider supply of inventory while strengthening our brand as a preeminent online destination for luxury design products.

We believe there are also opportunities to diversify our business model by expanding into additional sales formats.

We intend to continue to evaluate such diversification opportunities as part of our overall growth strategy.

Our platform infrastructure is designed to scale with growth and diversification in mind.

Expand Internationally

During the year ended December 31, 2023, the vast majority of our buyers were located in the United States and other English-speaking countries.

As of December 31, 2023, 44% of the supply on our online marketplace comes from outside the United States, while only 20% of buyers are located internationally.

We believe that this presents a large international

expansion opportunity.

Our website traffic also indicates strong international presence and opportunities for conversion, with approximately 43% of current traffic coming from outside the United States.

In continuing to expand internationally, we plan to focus initially on organic search and later on performance-driven paid marketing and email campaigns.

We may also expand internationally through acquisitions.

Investment in Technology and Innovation

We have made, and will continue to make, strategic investments in our platform to drive seller success through new tools, convert users to buyers, grow our long-term revenue and operating results, drive technological innovation, and enhance the overall experience of our online marketplace.

As we continue to scale, we plan to strategically invest in innovation, including continued investment in machine learning and artificial intelligence, to address the needs of our sellers and buyers and drive efficiencies in our business, localize our platform, and may enter new verticals and geographies.

Overall, investments in our platform are focused on maximizing traffic, increasing conversion rate, and improving the overall efficiency of our operations.

We acquire new buyers and drive traffic to our online marketplace through a mix of direct response marketing channels, with an emphasis on digital and a focus is on efficient growth.

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We review all applications from these efforts, tier them according to desirability based on their inventory quality and “salability” onsite, and then invite the approved sellers to join our online marketplace.

Environmental, Social, and Governance (“ESG”)

Our business creates a positive environmental and economic impact, balancing the needs of our buyers, sellers, partners, employees, investors and the environment.

We are committed to extending the lifecycle of luxury goods by promoting their recirculation.

As of December 31, 2023, approximately 64% of the listings on our marketplace are secondary.

Buying an item on our marketplace offsets the need to manufacture a new item, which creates a positive economic impact for all parties.

In addition to providing buyers an opportunity to shop sustainably, we continued to provide financial support to organizations through our employee giving and charitable donations program in the year ended December 31, 2023.

Our Employees, Culture, Values and Human Capital Resources

Pursue New Product Verticals and Diversification Opportunities

Antique and vintage furniture comprised less than 50% of our on-platform GMV in the years ended December 31, 2024 and 2023, respectively.

We expect antique and vintage furniture to account for less than 50% of on-platform GMV for the foreseeable future.

Adding verticals has several benefits, including increasing our addressable market, the number of sellers and buyers, purchase frequency, and offering our buyers a wider supply of inventory while strengthening our brand as a preeminent online destination for luxury design items.

We intend to continue to evaluate such diversification opportunities as part of our overall growth strategy.

Our platform infrastructure is designed to scale with growth and diversification in mind.

Expand Internationally

During the year ended December 31, 2024, the vast majority of our buyers were located in the United States and other English-speaking countries.

As of December 31, 2024, 45% of the supply on our online marketplace comes from outside the United States, while only 20% of buyers are located internationally.

We believe that this presents a large international expansion opportunity.

Our website traffic also indicates strong international presence and opportunities for conversion, with approximately 44% of current traffic coming from outside the United States.

We had 53% and 55% of unique sellers and 45% and 44% of the supply on our online marketplace come from outside the United States in the years ended December 31, 2024,

and 2023, respectively.

On-platform GMV from buyers in non-U.S.

markets constituted 18% and 17% in the years ended December 31, 2024, and 2023, respectively.

We believe there is an opportunity to grow our GMV from non-U.S.

markets, and may also expand internationally through acquisitions.

Human Capital Resources

As of December 31, 2024, we had 284 full-time employees, including 104 in technology development, 78 in sales and marketing, 38 in general and administrative, and 64 in operations.

Our human capital resources objective is to ensure that we have the best possible team to reach our business goals, and that the team we have has a positive employee experience.

We do this through attracting and hiring the best team, ensuring our policies and practices create an inclusive culture, and developing our team in ways that contribute to personal and business growth.

We regularly receive input from our team members through employees surveys, focus groups, and events to gauge employee engagement and identify areas of focus.

We have built a talented, experienced management team led by our CEO, David Rosenblatt, who joined 1stDibs in November 2011 with a vision to transform the online luxury experience.

Members of our management team have helped create and grow leading luxury, design, and technology businesses globally such as Amazon, Care.com, Christie’s, DoubleClick, Farfetch, Google, PayPal, Refinery29 and Shutterstock, and have retained a strong entrepreneurial spirit and a wide array of knowledge.

We believe in the importance of fostering a diverse, inclusive, and safe workplace;

diversity is both a priority and strength of our company.

We strive to continue to improve representation throughout the organization.

Below is a breakdown of how our U.S.-based team self-identifies as of December 31, 2023.

Asian Black or African American Hispanic or Latino White Two or more races Female

All Employees 16 % 7 % 6 % 67 % 4 % 50 %

Management (1)

— % 12 % — % 88 % — % 38 %

(1) - Management is defined as our CEO and the management team reporting directly to the CEO.

The composition of our Board of Directors also reflects our commitment to diversity.

In 2023, three of our six directors, including each chairperson of our Audit, Compensation, and Nomination and Corporate Governance committees, are female or a member of the LGBTQ+ community.

We are committed to building a diverse team and an inclusive workplace that respects and meets the needs of our diverse community of sellers, creators, and customers.

To that end, we are leading a number of initiatives to further broaden the spectrum of our workforce and to create a culture of diversity, equity, and inclusion.

Our goal is to ensure that all people feel welcome and are ultimately celebrated for their uniqueness.

Our efforts are focused on establishing business norms that promote Diversity, Equity, Inclusion, and Belonging (“DEIB”) both within the company and across the broader design community.

During the year ended December 31, 2023, our internal approach included educational, recruiting, and corporate social responsibility programs.

We currently have five employee resource groups for the purpose of connecting employees with shared identities, backgrounds, and interests to help foster the company’s culture of inclusion, and engage employees in our DEIB efforts.

The 20% increase in full-time employees from December 31, 2023 is primarily due to an acquisition of a Lithuanian technology support company that is now a wholly owned subsidiary of the Company.

Our human capital resources objective is to ensure that we have the best possible team to reach our business goals, and that the team has a positive employee experience.

We do this through striving to attract and hire the best talent and developing our team in ways that contribute to their personal and business growth.

We regularly receive input from our team members through employee surveys, feedback interviews, and events to gauge employee engagement and identify areas of focus.

Our Technology and Data

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We created an extensive digital catalog in luxury design with associated metadata that is used to simplify the buyer experience in an ordinarily complex purchase process.

This database includes taxonomies, structured metadata, an expansive catalog of luxury brands and designers, and an extensive library of luxury design products, product attributes, and pricing data.

This database includes taxonomies, structured metadata, an expansive catalog of luxury brands and designers, and an extensive library of luxury design items, product attributes, and pricing data.

Our highly sophisticated, purpose-built technology stack facilitates complex, multi-step online transactions and is extremely difficult to replicate.

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Data Security and Protection

We are committed to the security of the sellers and buyers who transact business on our online marketplace.

We collect and store certain personally identifiable information provided by our sellers and buyers and other third parties with whom we transact business, such as names, email addresses, and the details of transactions.

We are committed to the security of the sellers and buyers who transact on our marketplace.

We collect and store certain personally identifiable information provided by our sellers and buyers and other third parties with whom we transact, such as names, email addresses, and the details of transactions.

We do not directly collect, transmit, and store personal financial information such as credit card data and other payment information and rely on third-party payment processors who provide these services on our behalf.

The collection, transmission, and storage of such information is subject to stringent legal and regulatory obligations.

Some of our third-party service providers, such as identity verification and payment processing providers, also regularly have access to seller and buyer data.

Some of our third-party service providers, such as identity verification and payment processing

providers, also regularly have access to seller and buyer data.

We undertake administrative and technical measures to protect our systems and the consumer data those systems process and store.

We have developed policies and procedures designed to manage data security risks, including employment of technical security defenses and continual monitoring of servers and systems.

Further, as part of our efforts to protect sensitive information, we rely on a variety of security measures,

including encryption and authentication technology licensed from third parties.

Further, as part of our efforts to protect sensitive information, we rely on a variety of security measures, including encryption and authentication technology licensed from third parties.

We also use third parties to assist in our security practices and prevent and detect fraud.

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See Note 2 “Summary of Significant Accounting Policies” to our consolidated financial statements for further discussion of our operating and reportable segment.

Our business is subject to foreign and domestic laws and regulations applicable to companies conducting business on the Internet and in the resale market.

Our business is subject to a growing number of local, national, and international laws and regulations, which are applicable to any company conducting business on the internet and in the resale market.

These laws are often complex, unclear, sometimes contradict other laws, and are frequently changing.

Compliance is costly and can require changes to our business practices and significant amounts of management time and focus.

Laws may be interpreted and enforced in different ways in various locations around the world, posing a significant challenge to our global business.

These include laws governing areas such as personal privacy and data security, consumer protection, payment processing, sales and other taxes, and unfair and deceptive trade practices, among other areas.

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International jurisdictions impose different, and sometimes more stringent, consumer and privacy protections.

We list luxury design products from numerous sellers located throughout the United States and from over 90 countries, and the items we list from our sellers may contain materials that are subject to regulation by international, federal, state, and local governments and other regulatory authorities.

In addition, numerous U.S.

states and municipalities have regulations regarding the handling of antique and vintage items and licensing requirements of antique and vintage dealers.

Our business activities are also subject to various restrictions under U.S.

export and similar laws and regulations, as well as various economic and trade sanctions administered by the U.S.

Treasury Department’s Office of Foreign Assets Control.

Further, various countries regulate the import of certain technology and have enacted or could enact laws that could limit our ability to provide sellers and buyers access to our platform or could limit our sellers’ and buyers’ ability to access or use our services in those countries.

We are also subject to various domestic and international anti-corruption laws, such as the U.S.

Foreign Corrupt Practices Act and the U.K.

Bribery Act, as well as other similar anti-bribery and anti-kickback laws and regulations.

These laws and regulations generally prohibit companies, their employees, and their intermediaries from authorizing, offering, providing, and/or accepting improper payments or other benefits for improper purposes.

We list luxury design items from numerous sellers located throughout the United States and from over 75 countries.

As such, we need to comply with various laws and regulations associated with doing business outside of the United States, including regarding the handling of antique and vintage items and licensing requirements of antique and vintage dealers, export control laws, economic and trade sanctions, anti-money laundering laws, and anti-corruption laws.

Further, various countries regulate the import of certain technology and have enacted or could enact laws that limit our ability to provide sellers and buyers access to our platform or could limit our sellers’ and buyers’ ability to access or use our services in those countries.

Although we take precautions to prevent violations of these laws, our exposure for violating these laws increases as our international presence expands and as we increase sales and operations in foreign jurisdictions.

See Part I, Item IA, “Risk Factors—Regulatory, Compliance, and Legal Risks.”

New legislation or regulation or changes thereof due to federal elections, the application of laws from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to the internet and e-commerce generally could result in significant additional compliance costs and responsibilities for our business.

We compete with a broad range of sellers of new and pre-owned luxury design products, including traditional brick-and-mortar entities, such as department stores, branded luxury goods stores, and specialty retailers, and entities providing access to more unique luxury goods, such as galleries, boutiques, and auction houses.

We compete with a broad range of sellers of new and pre-owned luxury design items, including traditional brick-and-mortar entities, such as department stores, branded luxury goods stores, and specialty retailers, and entities providing access to more unique luxury goods, such as galleries, boutiques, and auction houses.

We also compete with the online offerings of these traditional retail entities, as well as online marketplaces that may offer the same or similar goods and services that we offer.

We believe that we compete effectively based on the volume, quality, and assortment of unique luxury design products available on our online marketplace, our brand awareness and history built on trust and authenticity, the experience and value proposition we offer to sellers and buyers, and the scale of our online marketplace.

We believe that we compete effectively based on the volume, quality, and assortment of unique luxury design items available on our online marketplace, our brand awareness and history built on trust and authenticity, the experience and value proposition we offer to sellers and buyers, and the global scale of our online marketplace, including the effectiveness of our mobile app.

Intellectual Property

We rely on a combination of intellectual property rights, contractual protections, and other practices to protect our brand, proprietary information, technologies and processes.

We primarily rely on copyright and trade secret laws to protect our proprietary technologies, and processes, including the algorithms we use throughout our business.

We primarily rely on copyright, trademark, trade secrets, confidentiality agreements, and domain name registration in the United States and abroad to protect our brand, proprietary information, proprietary technologies and proprietary processes, including the algorithms we use throughout our business.

Our principal trademark assets include the registered trademark “1stDibs” and our logos and taglines.

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Although we do not currently have any issued patents, we may pursue patent protection for aspects of our technology in the future.

We seek to protect our proprietary information, in part, by entering into confidentiality and proprietary rights agreements with our employees and independent contractors.

We seek to protect our proprietary information, in part, by entering into

confidentiality and proprietary rights agreements with our employees and independent contractors.

Our employees are also subject to invention assignment agreements.

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Website Access to Company’s Reports

Our website address is www.1stdibs.com.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available free of charge through our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

Our website address is www.1stdibs.com, and our investor relations website is www.investors.1stdibs.com.

Copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available free of charge on our investor relations website as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

The SEC also maintains a website that contains our SEC filings.

The SEC website address is www.sec.gov.

Disclosure Information

In compliance with disclosure obligations under Regulation FD, 1stDibs announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and webcasts, as well as the investor relations website.

We use our investor relations website to announce material nonpublic information to the public including filings with the SEC, press releases, public conference calls, and webcasts and for complying with our disclosure obligations under Regulation FD of the Exchange Act.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business