1stdibs.Com (DIBS) 9 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to the 1stdibs.com Inc. Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Instructions will be given at that time.

call this reminder a maybe recorded. As

like LaBuz, Head would to Corporate turn Kevin to over call of the Development. I Investor and Relations

You begin. may

the XXXX. and ended Corporate of Development. morning welcome Xstdibs and call Good to Investor Relations September Kevin I'm for XXth, LaBuz, Head earnings quarter

Joining are Rosenblatt; CEO, and Tom Etergino. me today David CFO,

be financial growth Tom will will review will update our via on This and David available fourth business, including outlook. third Investor opportunities at quarter results under provide an our and quarter strategy Relations and investors.Xstdibs.com. webcast our call website

Before alternative, them, we growth not demand, our statements international and including dynamics, business to future begin, rates limited please condition. include but market of that performance, prospects, keep economic our trend business and in including, potential growth guidance responses financial remarks opportunities, e-commerce mind plans, to, strategic and competitive regarding statements and evaluation forward-looking initiatives,

from forward-looking including result or may disclaim that law. results expressed our the we implied this those we actual in make described to as those risks obligation them, to these in Any update of based assumptions today, SEC on of our differ forward-looking Our beliefs on are any filings. and required statements a as and extent materially call except statements and uncertainties by

Investor included replay our Additionally, during on earnings and is present of in which non-GAAP measures can this we'll non-GAAP GAAP find today's financial the along of press call, website, GAAP measures. A with call. to reconciliation you Relations release, a

all noted. unless that are basis, otherwise Lastly, a growth on comparisons please year-over-year note

CEO, our I'll David? over now turn to call Rosenblatt. the David

Strength Despite we above jewelry margins for and thank and EBITDA orders revenue adjusted delivered and GMV, home end guidance. Good goods bolster high-value in margins today. Kevin. morning cuts. for environment general, adjusted you e-commerce high our EBITDA from joining while GMV benefited and of in cost the challenging Thanks a us

growth. and initiatives, our auctions, international Additionally, supply making strategic on progress continued we expansion,

efficiency and and from this improving structure. period growth on focused with aim emerge challenging are We cost drivers more leaner to a

aligned drastically quarters, lower by two and increasing past by reducing to expenses performance we demand the XX%. hiring, For approximately have marketing efficiency headcount targets, curtailing

adjusted As margins despite revenue. result, EBITDA quarter-over-quarter improved in declines a sequentially

those trends was Traffic quarter. were healthy, improved broadly targets organic mix Third second continued SEO higher consistent points four due with on quarter combined marketing. of efficiency traffic the operating performance growth strength in with to percentage

remained in by increased, brisk conversion acquisition offset at lows. seller was but conversion. again, Supply and new stayed returning softness churn historical this buyer Once buyer

X% quarter. year's quarter, total Our in up sharply, strategic to sites added the accelerated three rate. at the we French our times X% last and represented of initiatives orders Auctions German in are and from sellers traction. second gaining Traffic new growth localized

of seen new seven Through quarters. GMV end had a the order One change of the composition second quarter value we growth. for grow average quarter, dynamic in this was the the prior

However, third quarter. same declined into come quarter. the Encouragingly, the trend growth October. has in rates time, improved AOV throughout order month-over-month this At the

under fixed items lower-priced than auctions, two in believe We amid macroeconomic percentage consumer has shifting purchases; of factors; price are the lower behavior overall first, uncertainty. growth favor an AOV believe declines a $X,XXX. this of AOV by of second, driven We which reflects orders increasing

as declining don't We see AOV negative. a

exists active points under strategic rationales and AOV GMV to market. price launching from of a the growing This for the is goal at was of over Our $XXX $XXX,XXX. Luxury one buyers. Lower variety expands auctions.

standards buyers is maintaining across Our world-class strict our supply. while and objective spectrum, luxury serving the vetting

brand supply challenging, our is environment in gives us trusted near-term the and future. While the confidence world-class

Over high-quality the past synonymous become two has with Xstdibs items. decades, one-of-a-kind

rare but it we allows categories transact statement in balance trust us sheet, on for price do. This income or points and to item line a see won't everything in e-commerce. trust underpins You our

saw have of engagement we consumers trust declines, these For we orders by indicating of example, for A $XXX,XXX, rings, driven over record level were number overall jewelry. with locations. in the of of AOV their a number spite important most

We value ongoing reviewing are are us paths objectives, review GMV help these advisers our including to financial strategic Allen our & and for committed at and business achieve growth multiple enhancing of to options shareholder reaccelerating various with Company. the

to we internationally. supply, conversion, business, the focused Turning and efficiencies, operations, on expanding our remain drivers expanding auctions, realizing improving of growing

traffic growth. is mix Improving subdued overcoming new lever reaccelerating economic uncertainty, on Everything mobile our headwinds. to our web enhancements. device day-to-day demand, returning are and app largest desktop is to shift mix goods and new a and including buyers initiatives strategic marketing do we focused Today, to buyers conversion shift GMV buyer conversion from from and home product a these,

game testing, incremental iterating. a time. that Conversion of compound We're over and learning gains is

the we During pages, added more recommendations inventory low those example, product pages. for to third for conversion improving quarter,

model We listing on browse new enhance also built and based item a and rankings. tested attributes search to

the US. Lastly, a we in option as Klarna implemented payment

buyers. two-thirds come first-time approximately far, Klarna checkouts have of from So

another is Improving efficiency priority.

this a inbound customer client example, reduced initiatives improve completed For over of while service XX%, improvements, quarter, enhancements operational product number by satisfaction. Through we operational productivity. we to volume overall and high maintaining

focusing Going to improve efficiency. forward, continue on projects we will

for team supply made onboard higher sellers a sellers, of without allowing self-service launched cross-functionally Our with headcount. new gains management, onboarding efficiency product working volumes us well, as we adding experience to

of our priority standards. where is a sellers. curatorial and buyers aggregate match increases high ability the to and make while drives is between more robust, growth it they're search most because makes items Supply traffic, maintaining a located, goal regardless to Our beautiful world's strategic

over September over up sellers average. Our new continues supply over signed accounts, with XX%. quarter, our drive pricing acquisition monthly ending seller X,XXX test new to the in seller at triple XXX XXXX We

ultimately marketplace Adding grows marketplace matters. supply we're Because one-of-a-kind demand. breadth improves a and liquidity of items,

We are out. seeing this play

a minerals, high-value GMV. order connected For example, additional of in new on example adding supply orders, payer specialist The to their September. have one of dealers, sale, our first a a made fine how an drives collector in subsequently

succeed guidance choice and format. pricing of by cycle life inventory sellers on focused which on marketplace helping at management, purchase we're is on providing targeted ahead, the Looking

great against We orders auction for X% We supply continued XX,XXX sequentially. with XX,XXX from and supply. unique bidders, seeing orders, double-digits Auctions the quarter. in X% listings, in auctions second of growing of GMV, traction all up accounted had

and across been of have art highlighting the verticals. accounting value the multiple operating orders, approximately jewelry verticals, of top-performing launch, for XX% Since

AOV in below before. purchased $X,XXX. more Xstdibs Auctions had point buyers. helps never engage remains We third believe XX% new this bidders activate quarter from accessible and of price Over the

payment Additionally, first-party teams. for day. data first and about what they of the is don't on first-time the bidders they're information, same interested registered and signal product their valuable auction, Even and marketing XX% about placed our contact This bid provide details, in. their if win bidders

launch, the through Since weekly auctions we've experience enhanced product updates.

auction During discovery the touch we on-site improved new modules. the third and increase of with existing visibility quarter, points

reach of push and the urgency broadened launched also to our e-mails drive notifications and bidding behavioral We activity.

In we're next best. more Our provide beginning pricing refine work fourth listings around pricing. on guidance sellers quarter, step optimizing to recommendations what is and the driving perform demand focusing and and categories

localized to our full in this operating quarter Turning France. Germany sites was International, and first

initial traffic focus here driving those has is Our to been sites performance encouraging. and

off German factors. XXX% and driven year-over-year, albeit by a French base, Traffic low IP grew two addresses over from

in we German. First, marketing and testing performance French local started language

our Second, pages we're starting indexed being languages. SEO from see benefits in local to

came majority both these in grew who SEO year-over-year of vast The before. approximately sessions markets. XXX% users from haven't from traffic Xstdibs purchased

convert traffic this XXX take time cycle into consideration about to it is will days, our orders. Given

which messaging into in to machine are e-mail to help and language with. France buyers and team communicate file Our the to also will grow working They international on-the-fly most product organic translation and in repeat allowing incorporated they the Germany, drive traffic center, comfortable purchases. are our sellers

It WhatsApp. successful takes a customer international are We our happy years on so also far. with to but launched we business, support build progress

its environment difficult trust this is The the high-value brand. we testament to a with of and and our unique quarter. the with orders platform success Xstdibs Despite for built buyers value strength e-commerce, sellers displayed the

for us their world-class us subdued our unique We e-commerce a meaningful Buyers is trust most come temporary for supply dynamic. that they and believe purchases. demand to

e-commerce cost including and we will will, two growth marketplaces, auctions, When as supply. believe predictably. and a rebounds more drivers, penetration demand before COVID, the increased In localized structure leaner it increased we have decades

As our efficient. become to we and challenging this more manage period, is competitive aim position deepen our through

EBITDA We sequentially with improving are adjusted lower revenue. already seeing progress margins despite here

order demand AOV, we into durable trusted rates Additionally, giving us assets, October. despite confidence our current lower future. supply encouraged quarter improved environment, and Unlike the the the in growth throughout year-over-year are brand are that and world-class

I'll turn now to our and quarter over results financial it Tom third outlook. fourth to review quarter

margins margins GMV improved high-value the above revenue, X%. was our sequentially strength David. cost EBITDA Thanks Despite high GMV, our $XX.X of orders, revenue, and as in of end guidance we a lower EBITDA -- result reductions. down adjusted adjusted range. jewelry million, delivered and

This while returning offset was year, the increases traffic the particularly to Similar modest half for buyers. growth conversion buyer strong, softened, first new by in remained conversion. of partially

with recent relatively consumer quarters, Consistent growth and trade Both was trade GMV declined. stronger.

declined. that encouraged trade flat are We orders while AOV were

verticals performance. multiple by helped exception Turning our the jewelry a highlighting benefit number the All in mid-XXXX. to Jewelry, declined has grew quarter Strength which vertical record grown high-value spanning furniture vintage second was behind vertical every antique of largest mid-teens. orders, of of verticals. with since jewelry,

Nearly Consistent with our can recent quarters, fashion. furniture, art first-time for XX% less categories, new furniture orders XX% of jewelry, and of than custom accounted and vintage GMV. and antique

higher auctions average Over an declined the as by percentage a the it grew. order quarters, X%, driven seven orders third as to under quarter, shift of value overall $X,XXX. In past mix well

quarter-over-quarter from monthly high-value insulated fluctuations is a which on basis value, order orders, in June. sequential median our declined since Additionally, has

order throughout order into economic While rates uncertainty, order growth value month-over-month that volume average a the and order improved value resilient. is October. declined, continued Despite trend median quarter,

points a variety Luxury at of and on price available Xstdibs vertical. is

quarter-over-quarter. year-over-year was quarter down XX,XXX orders During XX% and $X,XXX. were the with the X% X% value We over quarter, buyers, under and active median approximately order $X,XXX of approximately ended

expect period be demand. of through softer manage We a near-term to choppy this as metric we

of closed over On X,XXX the up marketplace, XX%. accounts, quarter over the we seller supply with the side

priority. improving efficiency Turning operations, to is a

During the headcount Related quarter. amounted reduce steps to current the accelerated third demand. severance to difficult to charges by taking XX%. began to costs work approximately In This second align September, our decision our we late made we $XXX,XXX. the in approximately quarter,

generate headcount we on to in the of quarterly million a expect Starting reduction annually. or quarter, million basis fourth savings $X $X.X approximately roughly this

headcount, drastically open and headcount of October. peak non-headcount our rationalizing efficiency Cost XX% initiatives roles, end ongoing. marketing reduced reduced targets, spend hiring the quarter to costs. we performance To-date, to reduction number September attrition, critical limiting Between positions, the increasing backfills and second is by of from the lower for are limited started savings down

our end sheet second the streamlined also and the quarter, balance our of Design million. Manager strengthened At selling we $XX.X for business by

for per New year. to York cost other office, savings actively $X opportunities, rent approximately where expense continue including look is marketing We million our

one roughly cost done, second sequential of by is quarter, the are there revenue. percentage showing to EBITDA declines despite Relative the While up point the reductions more in to on impact margin adjusted work be P&L. improved

Total operating approximately declined quarter-over-quarter. X% expenses

you X% expenses one-time severance operating exclude If charges, declined sequentially.

Compared was our to million this, reduction, in modeled approximately September we Despite $X.X the third EBITDA declined does fourth the year-over-year reflected expense which quarter. lower declined last of and but $XXX,XXX impact approximately will include start year, revenue as $XX reductions in the and quarter, expenses. GMV back reflects to second This by not headcount million. adjusted late be

while We structure rebounds. cost expect enjoy to the leverage our leaner of demand

net quarter-over-quarter. Turning was P&L, million, up Manager. to Gross this $XX.X approximately tied the down making Transaction for for of Design results is down Financial XX% subscriptions was exclude revenue Manager, was the XX%. revenue approximately X% revenue forma directly sale Design remainder. of XX%. of year-over-year $XX.X the GMV, X% profit down revenue, was Pro bulk million, and the with quarter to which

Gross revenue. as and payroll of a hosting increased and benefits, a costs margins stronger XX% as quarter, and co-location colocation compensation from were of costs higher a Similar result offsetting ago. growth without GMV. declined Gross margins down to XX%, second the and were traffic percentage year stock-based hosting

by million, spend, $XX.X driven lower by performance related marketing were expenses partially offset September payments marketing and restructuring. one-time Sales XX%, severance to our down

percentage of ago. of due we demand. softening pulled year marketing to the Similar down recalibrating and increased performance conversion, match an on to revenue back example XX% a as was our second from to XX%, thresholds Sales expenses quarter, marketing a efficiency and

September $X.X expenses by driven our were to up million, development one-time higher restructuring. payments salary and Technology benefits, higher stock-based compensation XX%, including and severance related

a technology was percentage up revenue, from of XX%, development As XX%.

they and stock-based General in negotiate benefits. payroll on savings up administrative XX%, were by as continue driven renew. million, and as higher we to over insurance realized D&O compensation expenses and $XXX,XXX aggressively contracts We $X.X

As administrative XX%, general a from and up revenue, percentage XX%. of were expenses

EBITDA of lower flat development a margin transaction last was year. million, loss of a year-over-year of provision Lastly, for $X.X year. was was were compared to change losses higher a revenue of EBITDA and This $X.X $X.X X% driven XX% million year-over-year. by last revenue, of a million Adjusted spending. versus loss Adjusted XX% loss loss technology

cash million. Moving to sheet. cash the with and We position ended quarter the equivalents a strong balance of $XXX

to We've seasonality. quarter-to-date Turning outlook. quarter the muted seen fourth

this Our XX% continues of to guidance GMV trend We remainder to quarter. $XX million for forecast of quarter million, the assumes down XX%. the fourth $XXX

Net broader XX% shifting and number revenue to to GMV down reflects [Technical and offset and million ongoing of AOV of adjusted contribution conversion consumer that behavior, to $XX.X initiatives loss of Difficulty] factors, guidance XX% new uncertainty, strategic headwinds, conversion margin a EBITDA $XX.X for Declining million, will including from XX%. GMV economic buyers, particularly limited softness. visibility. XX%

our reduction to third quarter ongoing savings management. headcount expense Turning adjusted reflects margins, and EBITDA from guidance

in headcount operations. September marketing expenses be some However, offset seasonal reduction savings will of our by and partially from the

GMV As flow free per operating leverage and always, is grow ultimate of to cash drive share. with our the growing goal aim

more becoming showing are incremental by realizing cost reallocating efficient to savings and highest the resources We existing potential. identifying and projects

isn't already We're work tangible This starting with and finished. sequentially adjusted despite GMV margins lower EBITDA results, revenue. improving see to

We benefit a to when from expect diligently manage demand expenses structure and cost rebounds. will continue to leaner

questions. turn Thank now to operator call your your to the for I'll the over time. take you

Thank you. Mahaney [Operator from Instructions] with Our ISI. first comes question Mark Evercore

is open. line Your

could I please. couple questions, ask If Okay. of a

you there price points off So, you a to that either or do to from from it's buy certain for are or wouldn't is Are So, you how think categories be? the perspective? think auctions a where that auctions think it now of auctions to? seller First, X% is sense on and broad there big sellers could make go gone both level appeal how limits transactions, the X% of natural buyers just if platform? could

measured a there of Yes, Mark, have of couple at are market to terms we or mean, least by at as couple the range, We better and pretty it's I the ways. of I in of, we both it's ours think reasonably out I comps I level, simplest the that is in there, companies landscape, mean, $XXX know, think high one, look -- don't David. to think experience. in a products. million have a They're broad. $XXX we believe. you a when supply of from kind kind million are better similar consumer demand. We

than that need cash. absolutely to sellers, in that I provides buyers. important in case, it before, an think efficient in in qualified terms of ever solves is It right? And liquidate more a economy this hands the put commercial product of way inventory generate and our

And -- over that listed product then We fact have with very right? side, billion sell-through, we I on $XX have the the start the low of worth on just marketplace. demand we

this what year. know be GMV You our will

is too our all So, the the things, they of two what price balance are says our those to are reason between why primary research that be high. perceived rates sell-through is the

they rates that What returning we're see new works strategic in is far we seeing how between the the addressed that conversion that familiar reflected auction so who really difference has people ability cases, with don't platform are and And the understand buyers. in what In have is negotiate. those opportunities. buyers many to

on sell-through the a it is sell-through So Xx basis, is marketplace. what in

have to who demand people than of the higher file. for buyers are marketplace. significantly for are who the conversion registered people The XX% On are new bid they side, are rates new to

more So, working it's of it's time, doing its evolve auction-friendly a different job. At same our a needs Pricing living sellers. ranges. for the to to way and

are ourselves And have other far, we outperformed so what sells, art right? categories. secondly, learning and And jewelry

sellers to sort especially teaching to in both learning we're awareness still auctions buyers. our this. fundamentals, with of the And us. number work that again, But among sell-through a and back again, We're front it's says in lastly, opportunity big I that go to in comps. of to how still process then and early grow and ourselves those had of me, and so And the

just but I And may do full I disclose for you what's you you how international, this -- it did at terms GLV in for ramp, markets to will know was France Or could first missed please. I follow-up, or long and QX? GMV, all it, how [ph] those material, those be then the for On for implied think Or areas if were of that international the revenue? talk Thanks. guidance the have like the those Germany. about to material overall? one segments in take -- if business quarter

our is pleased quarter which that ensuring to organic pleased is full the localized the of grew We're see initial experiences. French version after that product focus year-over-year. traffic is France we this German develop to stable, first the So SEO were and for The our -- and capability. XXX%

feel it. will infrastructure, to build paid and of about how the behind how a off over a we material now, of to files Right So, sort be The e-mail our steps curve GMV. years? next it's to put that's start to Tom, we're build want like think kind several do the to about next to good talk also there. the market you part then of you not

Yes, longer. curve international think bit a I that little the is on

grow half on -- going it the into But full at give not out in the slower it. right as that we becomes don't that We're growth us will it rate. a -- we're first traffic. having is to this traffic monetization that. come is great the -- But thinking consider the now. will at time breaking larger, So, into think seeing -- takes But of it probably quarter going to will ramp we'll XXXX, next be guidance year we're I up. to start least it the that of first

Thank David. Tom. you, Thank you, Okay.

Young question with from Barclays. Trevor next comes Our

Your line open. is

if may. Two, Great. I Thanks.

I the cost should mentioned like much level for certain have sort I that, there XXXX get BUT the and a [ph] subleasing be you is of guide revs breakeven reduction EBITDA because office guess of looking given thinking $X.X at quarter, just million to a business space. high Q-on-Q to XQ to you've the of a contemplating about, which do call specific of it, from, New that potentially need we savings, assess current mix breakeven. Not anything or reached that to lift we the also improvement, just ongoing some think York the First, guide level, or at how point? trying GMV point like

Yes. Thanks question. the for

you're So, right.

have head business, right? past count we've cost pull by XX%. hiring the we August, spend to And we're that taken by performance the difficult In non-headcount our quarters, some have NFTs. reduce costs. out over on So, made two open reduced September, started to of back the we significant of decision we our for. made lowered the decisions our about we've number efficiency We've rationalizing We've drastically targets. positions marketing increasing In

reflect So, our of the EBITDA as declined Operating our was P&L lower At that's and second our right? down improved versus XX% quarter-over-quarter margins you've progress, to despite headcount revenue, starting X% expenses seen, the sequentially. end is peak. adjusted October, approximately quarter

quarterly September reduce expect reductions expenses by or And our we million $X operating headcount lastly, quarter to about a annually. million $X.X

the also to resources So, highest our we're redeploying projects. potential

to and moved projects example, from resources engineering engagement. For increased that auctions we conversion and NFTs

focused is are us a mark. and GMV growth additional going And diligently identifying we kind and our achieving of realizing precondition just that breakeven to efficiencies everyone, want expenses. reaccelerating remind I to managing forward, on

That high we've on leverage. an operating leverage both ways asset-light calls, model operating cuts we with As prior business though. discussed have

So, GMV there is in on and pressure declining EBITDA. terms revenue, of

for operating revenue keeping the the When everything be additional percentage giving to I of well growth not will breakeven. with are can positioned we revenue. realize additional GMV will high in model guidance costs returns, But a to though, realize we with we our -- specific hitting bottom-line. the leverage doing we and our and are line efficiencies dates in not on GMV

That's really helpful color, Tom.

some you kind of pack recovery though to to is that to that at sounds reach some it like GMV see So, embedded in need breakeven. point,

of buyers -- you inauthentic Second betting question, do your credible higher sellers. those How how less a are balance an more factors? process, as maybe which bit do more and view sellers versus two touch seltzer endorsement boarding that you forth. they're touch that lower Perhaps just on so for likely these the historically have to balance goods

mechanisms at did So, changed one-size-fits-all any of sellers. -- that Previously, And fee. have very that the seller or relatively we familiarity offering change cost. included had a all. or we're of is stomach was we haven't in subscription test to any That hard we our to high kind experience the lots with what fixed criteria Xstdibs the for range a bear didn't high that of who pricing sellers

we And which higher fees. our the that, of a so in to low That's and suppliers. of rate subscription scale adding no to the tripling to resulted -- low-commission offer now of at commissions response higher range a sort what's we're and sliding kind in of, sub

on product. is for correlates are next What success since test pricing more suppliers we've step the is But the more seen that healthy create them and to actively they that to those post high-quality with the marketplace. evolve have incentives to and

Great. David. it. Appreciate Thanks

with Our Schackart Blair. question comes from Ralph next William

Your open. is line

for Good you're On steps efficiencies. the provide efficiency some maybe have if you I about more the think you on morning. opportunities taking here Thanks there of better might performance. some talked taking marketing the color some could and that gain getting more of you to increases, Maybe question.

Sure. is This Tom.

analyze that regular the we've spend in doing we're we that and done least most is we of allowable on have taking what in do obviously channel out a efficient continuing paid places basis. within -- favorable to we maximum And spending set. to We're So, we spending marketing. a favor spend what every up the this

we're so spending the which are allowables. managing the and in. them channels doing what And against spending we're that in we we're managing bringing we're those We're is allowable

Great.

this lever isolate to of to top But reverse macro sort you. or getting in a a obviously to tough trend macro of tough. I the priorities is could in accelerating extent Just you is Thank know new two in the environment? which can to sort GMV. if back softness the large one maybe of terms you buyers, you

look in of and case, healthy. overall, the listen, as the as very quarters, funnel, mean, are remains I we've Yes. we funnel past it the at said most parts

So, very registrations traffic for and and so it's and healthy on. measured strong strong, has by for Conversion held very as growth returning is Engagement favoring buyers. both been. trade up like buyers as ever as things is

have single a couple also right? lowest kind seen GMV macros of buyer of function a mobile converting conversion, been in But the a driver buyer help. which favor biggest We our has in things. we've weakness, traffic web. our conversion of Certainly, channel, don't is New new of a significant shift of

And that so lot we're in doing a regard.

of are strategic from that items Google, for of growth lots initiatives, supply to the Things SEO. course, And pages people We Klarna, got auctions, primary intended We've that. projects methods. operational new adding results to number on adding added get from payment of when improve Xstdibs conversion. example, pointed all international search our at like, are

first dynamic that the I of past interesting add kind of to was that, saw to -- the one, this in and a we there was for with do relationship had would another to AOV volume. between time quarters, order which which say, couple

we up year-over-year growth the had increases That in quarter in the what of AOV. quarters changed for July. rate seen So, leading the to was seven beginning third

the sub-$X,XXX to the in been of kind we've through think since has the range price declines. is in we've range. that significant the product October, AOV, of For attributable highest factors. orders that's clearly One, each month, July for again, couple example, We declines growth kind seen pretty macroeconomic. of a And seen

To total in October, And in a seen that is Auctions -- is basis. time, same probably each positive has we've growth orders then on improvements actually price growth. a unrelated, lower at increasing year-over-year second by the the auctions. and order design Conversely of sequential extent not point. was month share that order the beginning year-over-year

face that, order are its overall again, suggests of it's those e-comm us encouraging might expands the resilience weak the to market share our So, sort but that a and related, again, this because of be relevance -- retains order possibly in the two even platform growing likely of things TAM. ultimately number

the So, could while on expanding long has by helpful. it our a the effect in negative in near-term, very it GMV, be market, run

coming would say thing the is of example, last super not orders strength in record high the the expense The luxury number of In our $XXX,XXX. is as pricing all-time AOV an I month that at September, on over of in we high -- our segment. that had terms

you. Thank Great.

Our comes of from next Nagle America. Curtis Bank with question

line is open. Your

morning. for Thanks taking question. Good the

I the seasonality, to strength related in to, in How on going was we that's guess, [Indiscernible] focus that strong So, That XQ basic just And into expect much case? was jewelry. wedding the should definitely on wanted a deceleration some out season? quarter. post-COVID I if the

have So, jewelry, second is thanks did strong vertical as who quarter. just largest for a the Jewelry be a not reminder those and for may question. Jewelry, aware, our

of In grown XXXX. basis fact, jewelry quarter third has GMV on year-over-year a every quarter the since

well It's the It's it's are the sort we low, our from what strongest And fragmented in it do. suited returns competitive Shipping advantages. side. fairly consumer supply which our biggest to of and terms benefits of market. one fundamentals, we are I highly think of it's the on is just think trust, straightforward, costs

number a factors. benefited it of from So,

of high-price I in is high the previous One the -- growth AOV question. We in did seasonal. guess, mentioned was engagement the a likely sell orders that I high to them rings, bunch relation which, of

that, again, long-term of think, there. has trend been the beyond But positive sort I

function really I in industry sort a temporal just factors kind if position instead, know it's that to of I'm any macro of likely of of kind that before. more very the think I I factor, a specific mentioned strength So, to don't attribute

Okay, follow-up And a just fair on enough. then the XQ guide.

is, sounds guess we incorporating the OpEx? And that It most Just headcount cuts. recent is -- like or I would fully there. how terms which guess that lines the see announcements sure greatest not of within impact of but I much it in probably

Yes. Hi.

fourth is that savings in So, going quarter, the of to reduction the in to the -- seasonality attributable see $X.X muted what we force quarter, September. that had in were savings going we're going the at see going to fourth to see the we're sorry, We're million we're see. to end

included actually in the was that of none results. So, QX

offset as But that we some holiday savings And projects, long expenses lead-time higher have some catalog. marketing seasonal seasonally logistics of be will some expecting that such to that will kind in we're -- our see well, as of by costs. like

And so those QX savings be some types of of that factors. on based in offset will

you. Thank Okay.

Nick Our with next JMP question from Securities. comes Jones

open. Your line is

Great. I have taking two our I questions. for guess. Thanks

as into buyers kind and nicely, guess I conversion of up about that's them and I down. of follow-up. does is it it that of think First, GMV shows indicate traffic stability guess, a of stability, growing these that convert try tracking takes newer or, attributable in like to on when sounds I then with conversion the to growth? what we traffic kind is buyers. repeat kind overall when mean, have to new And timing take starts I kind conversion

Yes. decline kitchen encouraging has conversion of I another. stabilized or seen we conversion improved in at our recently. trends one recently. is growing way have The But sink we of some look, the and new conversion we're Everything on focused actually mean, rate throwing buyer do it.

timing probably to premature it's call on that. think I

stabilize months growth mentioned order healthy I and before, we continue at we've we in you order culminated goal in October. same But point, make the as conversion. result -- will a the I growing mean, do what again, over of rate trends, couple that, seen good the traffic that can last is if and which is if positive And which is which, to in

lot moving and things to of environment and parts to this economy in business performance. our are impact that But there and we're the a a volatile

with any little confidence it's early I inflection is. us of So, when for degree that point think to a call

Got And follow-up. then it. a

driving kind supply kind supply platform to enhances How within increased maybe you how of in SEO the You've Google And do and of the discovery within lot That search? adding balance then done the of search adding broader a to marketplace. ecosystem job good Xstdibs impact platform? SEO. the a

or impacting to does need come And what impact want they kind find of out that like kind of they for, they looking else. somewhere realize they users on-site if something of find they're that and search then Is get on and the able something Google else discovery? kind some for to they

Yes.

the on to more a certainly, find marketplace, user. The for the the relevant higher given question. the good a is ways have it's to burden we So, there -- on improve items inventory us

are we That items. said, long marketplace of one-of-a-kind tail a

items the given search And so -- too for that few few many is very items than too query. sorry, having we bigger have often a too problem

phenomena for Google conversion one contributing SEO. example, decline increasing to via the in we're buyer of traffic our the that from described that's getting new that of earlier I So, is rates proportion

high The users of conversion either on is and product happens, number very rate small pages When results -- have a rate on that listings. search a or very that Xstdibs the bounce the low. large is land percentage no those

and pages increase supply So, pages those part those motivation and number adding of conversion on items on a to the and so including product recommendations well as adding big is that in decrease as rate. way, in on, changes that of making, we're other the the

conversion. it's but in of counterintuitive, marketplace of a actually, can the hard-to-find believe, increasing So, kind tail, long somewhat I we help is items, supply think headline

Thank you. Makes sense.

Kessler with Aaron from next question Raymond comes James. Our

Your line is open.

then on strategic initiatives were headwinds the And Great. quarter, of Maybe just business. of part that? of number the last share you that can from cost second, review, you reduction kind Thanks some noted anything of a the guys. to

think these most in to some Or shift continue these an had QX? -- of uncertainty, sorry, less kind spend factors overall some mobile. I of some did spending well you. weigh more consumers furniture as economic as you of easing of as factors well? traffic out-of-home or to do lower experiences, see you mix Thank Did

Sure.

process. review strategic the of terms in first, So,

the explore retain quarter, did shareholder of advisors, and range value. belief Allen are As does of brand to of or the them potential enhance the either as we announced full & long-term to valuation are that, strength alternative. the shareholder to that for as value. look part our we The the and motivation want to of our possible business we last this ways is reflect every committed we not with at we current the growing working Company And

transaction possible sell-side transactions of this isn't cash. to we include transaction a a of we something may that until announce, can't It's we And not under to anything. change. have our do best of is control course or to any action Those course, to because kind from kind of buy-side announce that could Everything decide make will -- alternatives, lot of on course, everything the a table. is of also redeployment of a the

that's on process. So, kind strategic review of the the summary

underlying -- the verticals. terms mentioned, probably AOV our of jewelry drivers, I to I the think decline one July changes the biggest as exception is on in the negative each In of beginning is side, with started of to in

in July, growth month culminating better more than increase started But indicates a course, had October. was I of adds before, has and the in the platform. the roles. beginning crack of AOV. offset month our every order growth, the It LTV of in still in of That, year-over-year On that in overall to kind It in it's order kind those positive. the relevance at by got a is the best positive gives mentioned trend kind long-term side, the as while from change buyers of us to buyer declines

mentioned, point And conversion is buyer thing other the in make prediction decline which that of the to will saw. new rates The what did happen I'd the rate conversion be future, say that we would in is as I rates. environment data is I what buyer Again, foolish other but to bottom of this a out. new

new buyer we're and lastly, returning I the And then, of constant trade buyer -- buyer rates rates conversion positive mean, marginally conversion sorry, actually course, in and quarter. remain

Great. Thank you.

This questions. no in your program. conclude participation Thank the you program. are for There further does today's

great a have day. Everyone, disconnect. now may You