1stdibs.Com, Inc. (NASDAQ:DIBS) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Explore 1stdibs.Com's Fair Values from the Community and select yours

Last week saw the newest quarterly earnings release from 1stdibs.Com, Inc. (NASDAQ:DIBS), an important milestone in the company's journey to build a stronger business. Revenues of US$22m arrived in line with expectations, although statutory losses per share were US$0.12, an impressive 29% smaller than what broker models predicted. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, 1stdibs.Com's dual analysts currently expect revenues in 2025 to be US$89.7m, approximately in line with the last 12 months. Losses are forecast to narrow 7.6% to US$0.51 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$89.1m and losses of US$0.65 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a considerable decrease in losses per share in particular.

View our latest analysis for 1stdibs.Com

The average price target held steady at US$6.00, seeming to indicate that business is performing in line with expectations.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that 1stdibs.Com is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.5% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.1% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.5% annually for the foreseeable future. Although 1stdibs.Com's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that 1stdibs.Com's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$6.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for 1stdibs.Com (1 shouldn't be ignored) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.