1stdibs.Com (DIBS) 1 Mar 232022 Q4 Earnings call transcript

Good day, and thank you for standing by, and welcome to the 1stdibs.Com, Inc. Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Also be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Kevin LaBuz, Head of Investor Relations and Corporate Development. Please go ahead.

to December call XX, welcome and the and ended year XXXX. morning, XstDibs for earnings quarter Good I'm Kevin LaBuz, Development. Head of Investor Relations and Corporate

Investor me webcast will David quarter will Executive website Financial Chief our and strategy Relations on today first Rosenblatt; opportunities, including on fourth Joining Chief and be quarter growth and results Tom our Officer, business, call Officer, our investors.Xstdibs.com. provide available outlook. will David Etergino. our This and via an review update at Tom are financial

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

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

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

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

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

you for thank us morning, Good today. Kevin. and Thanks, joining

it in pandemic-related tailwinds progress. quarter. the was and challenging, record a also XXXX foundational with GMV year e-commerce It first high began Although of was

tailwinds goods services. behavior have headwinds Since from offline to from shifted and then, to spending shifted consumer online as these become

Additionally, issues a operating IDFA as like industry-specific environment. inflation slowing more like as factors a and market, well housing created challenging macro

lower of in we AOV conversion, headwinds record to supply growth, be and XXXX strong low challenging paid acquisition healthy particularly high traffic year. record buyers ended XXXX, and contrast, spite the registration new with year In we Like near expect remain marketing growth. for Nevertheless, growth spend, churn. a GMV to seller

cycles all eventually reverse. However,

have demand to drivers is be rebounds. growth more when leaner goal and Our

the You you make hand the do, control hand your can't do, you've must What of can dealt. most is got. the

As cut costs reallocate capital. conditions and to change, demonstrated our we willingness ability and

For and essential down the rolls over of by cut we handful to thresholds number example, year, increased headcount of positions reduced XX%, a performance marketing. efficiency the for open

potential for we and Manager sheet. streamlining due strengthening our to areas crypto Furthermore, downturn, business the like we expectations was we NFT not expansion. balance Design reallocated discontinued million, sold $XX.X traction, higher returns. areas selectively contrast, with gaining for our and performing to headcount international we to the invest to our business in when the Additionally, and auctions realize continue In that platform

on conversion-related goal majority is declines and XXXX, employees product to GMV for projects. of In Our particularly requires new our and forward work plan we buyers. path conversion, reaccelerate improving growth. The to the for engineering GMV stem

buyer experience for improvements, conversion of into mobile divided seller strategic seller the optimizations. and example, Our enhancing efforts web are series incremental are enhancements core groups, two a our Buyer and initiatives. and

and of understanding our in have efforts We map expansion. confident high-impact are road believe we a there. international our we're clear auctions Similarly, and focusing areas for

with date. Although progress our we're to happy projects, these are multiyear

auctions and France Germany. over to growth continuing traffic with nearly X% the We fourth fourth guidance. and quarter We at delivered quarter. a in end over listings, exit to structure and sellers, up XX%, EBITDA orders for of GMV order provided up by above Turning the with over margins cost million leaner strong high the With X,XXX X.X with and revenue or account of GMV XX%.

of we solid traffic Organic accounting softness, mix almost throughout for basis As particularly XX% by growth points, traffic. XXXX, improved for conversion XXX buyers. was traffic total offset new experienced

Registration shift ended targets up leading year million continued also mix marketing. efficiency was XX%. as brisk. was This registration a over driven by X.X growth the see strength with with coupled over SEO, We registered growth continued performance on in users, indicator. We positive higher

Order growth factors play average by were sequentially rates value. but offset improved more Two order here. at declining than are

the total percentage First, a ago. and XX% of XX% the the from $X,XXX XX% the orders quarter, in increased year to in of up third fourth under quarter

This increased which of has listings, orders auctions, amid which non-auction a to believe lower in is partially lower success caution the reflects consumer to we shift price due a AOV uncertainty. and macroeconomic

near on long Indeed, potential GMV was in rationales buyers. a strategic lower on-ramp audience weighs priced one the of of it AOV lower our addressable XstDibs. auctions growth, to run the While for term expands creating

are never We had from quarter seeing Over of in XX% purchased play before. this bidders fourth the out. XstDibs

and Moving ground improving conversion, expanding internationally. Conversion There lever our growing Improving supply, requiring incremental reaccelerate auctions here. to is focused game buyers new particularly no operations. to that GMV efficiencies, growth. We time. a remain is over for are scaling gains largest bullets conversion, on silver realizing compound

wins a fourth quarter. of had in the We number

high leveraging a based a data modeling. is of methodology on-site objective to activity by boosting and for test, we early conversion search on sort a browse with First, sale. successful launched probability in The and items new December order improve pages, predictive

saves in increased November, test, had the including users to uplift ran engagement, who which saw the updated in order orders. an During sort

shipping easy to in free listings we jewelry ship, lightweight funded is because Second, launched seller October. on jewelry and

increase similarities rates. behavior. to product an click-through incorporated drove items we Third, in uplift collaborative on user filtering our on This discovery, pages, recommending in based

area will focus. increased pricing an be of XXXX, In

flight projects the in and We pricing road related multiple map. on have

deals creating more and give contacts, highlight value with guidance Our provide exceptional buyers and objectives pricing are to when sellers database listings.

on giving highlights design ongoing items competitively us for For capabilities past project launched new pricing based from which items. in sales across February and early is values marketplace. example, one data this priced like data similar contacts is Collecting buyers giving our collection the

performance for to the additional discover pathways the pricing-related shopping plan launch have tools throughout buyers supply. and features to been experiences and year. evergreen We more Historically, collections effective

seller strong, signed in January fundamentals was by In seller accounts, remained pricing a demand our free the launched new in XXXX, over with subscription tier the robust spurred acquisition quarter, fourth Seller XXX new which supply XX%. we throughout Although X,XXX commissions. nearly and includes ending year. test, higher with softened over up sellers, December

XX% grew listings X.X Additionally, to million items. over

increases and ability growth traffic, deepen buyers make a between results search match Supply and our sellers. drives to

to for of see expect but growth XXXX seller to we'd data-driven sellers accounts goal this XXXX. volumes and slower that seller is XstDibs, growth growing listing XXXX, in Relative healthy successful listings their new on sure new Our continued by is in launching part making in influx tools.

bidders traction, Moving on, and continue was strategic gaining bids initiatives auctions grew down digits. double modestly order quarter-over-quarter, volume whereas

Although more negotiations, seasonality, we gifting. early conducive know to fourth which too towards to believe quarter price that and have are it's orders auction might fixed shifted

and $X,XXX sequentially. below accessible price remain point activating AOV and Auctions declined more is engaging buyers. This new

example, the in XXXX never before. valuable over XstDibs map. number For quarter from bidders We've our the These of road a fourth of XX% lessons auction learned purchased past over inform had year. lessons

half supply pricing. is out First of pricing refined on optimizing and be we'll internal rolling importance In based of the first XXXX, data. recommendations sell-through the

more than of supply that pockets are second others. The lesson performance some is

cocktail well. example, landscape and abstract paintings, For $X,XXX prints under rings all performed

importance to feature Last, are most demand and balancing the which do well listings a of seller Accordingly, we highlighting auction. at is launched likely supply, of sell-through. just their

we look e-mail, XXXX, new SMS. are implementing generation to and broadening on how we performance leverage bring in tools, As more push also supply including demand we

expansion is progressing well. International

off the to Similar traffic. driving SEO quarter, addresses is small XXX% a IP both traffic French and focus over XXX%, initial albeit from over grew third in Our Furthermore, German base. sessions markets. grew

German grew IPs from XX%. French and Orders over

two accounted compared opportunity fourth to total for XX% quarter, grows In X% orders. these As grows, under markets sessions of it. traffic our of the with total

to We continue international our experience. shopping improve

rate seen U.S. listings For convert European listings. example, have a we XX% for about customers European that versus higher at

such, team during international further As localized fourth home quarter. the French, and our German pages our U.K. product

and supply prevalence increasing page. of the local home and the search results on are We

support we so Additionally, European all-in pricing. added see VAT now buyers that

and so in expect new listings further the we quarter. project sites supply completed German our for sought Italian addition are when we sellers. to XXXX, also unlock in refinements In Italian valuable is second highly seller is localizing it after, to French tools this of

in early November, In test. seller starting to impact Tenreiro the these are new see transaction onboarded action. a Germany of Portugal of marketplace in our Joaquim a sold $XXX,XXX chair beautiful pricing to new recent A from encapsulates in acting a concert, in as new projects on We we localized and tactics seller strategy over our part buyer for our

of order action. This in priorities illustrates many our

is listings for a it us and is brought and has for resonating their us meaningful that business, purchases. most more Luxury appeal. unique markets. trust the brand our supply and First, in strong world-class Customers XstDibs to global turn shows our

supply that drives growth shows demand. it Second,

they're while maintaining Portuguese have most joined, not standards. Our seller matters. one-of-a-kind goal the aggregate transaction high located, If this marketplace to breadth of opportunities transact. where improves liquidity beautiful a happened. Growing curatorial hadn't Because and items, marketplace is regardless we're new creates supply to world's this would items of

Despite this supply but buyers registration facing map. conversion relevant we sellers. ever remain We traffic, our XXXX us and continued like a headwinds, enter in give challenging growth as us and XXXX, give orders as confidence that confidence road to our

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

the high half GMV revenue margins helped the end EBITDA improved cost year. our EBITDA guidance. and in Thanks, reductions above David. XX%. margins down million, We by quarter of consecutive was of delivered the for GMV or adjusted $XXX.X sequentially at fourth second quarter, the Adjusted second

remained consumer the consumer. recent particularly growth a Similar trade year, declined. buyers. of quarters, traffic with Consistent for first new strong, quarters remains and trade growth Both to the while X outpaced conversion GMV headwind,

increased GMV On while basis, a fell. GMV sequential trade consumer

While all record, growth. lower a with jewelry from GMV, offsetting verticals order The XX% accounted performance for decreased, ago. XX% best the AOV X% a relative up year of jewelry vertical showed

and quarters, under GMV accounted first order our value other Similar recent categories, art fashion. quarter. of and XX% orders vintage of declined Average furniture, and from new furniture XX% time came in and for jewelry, roughly fourth antique custom the to

this two dynamics change. As David mentioned, are driving

higher seeing $X,XXX. we're the ago. accounted up a of the quarter, sequentially orders of XX% and year orders a fourth under in from These for First, total XX% mix XX%

when impacted a this have is AOV, of trend growth Second, auctions, the which this by even auctions. lower shift holds true excluding but

fluctuations macroeconomic orders monthly a in insulated value, uncertainty. which basis this believe high-value order cautious from consumer has median We a sequential more on declined since reflects is June. Our amid

modestly While order quarter. improved third growth value declined, to the order median value order average rates and relative

sequentially. the XX,XXX active X% ended down X% We year-over-year and quarter buyers, with approximately

expect first quarter we managed of softer remain choppy to a period metric and comp. this demand term a through We near difficult as

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

throughout consistent Additionally, there X.X on the over listings million up were XX%. now Listing rates XXXX. marketplace, are growth

ability will operations. demonstrated to cut continue costs, focus on to In driving Turning and XXXX, XXXX. we we willingness and in to efficiency

align the back a demand. lower year, we Looking at actions took expenses of to to number

reducing include by drastically limiting costs. to lowering critical the roles, reducing increasing rationalizing count, number head spend of and efficiency targets marketing hiring open performance non-headcount These positions,

cost the since are statement. savings underway second the that have in income been quarter The actions manifesting

example, reduced hiring. to coupled our down count head reductions, year due managing ago, For with is XX% to and September a actively relative approximately backfills

basis, $X improved part expenses X% declined adjusted expense million. XXX and September EBITDA points. by due EBITDA year-over-year approximately by sequential a GMV over and reductions. management, basis to On including year, operating headcount $X.X last this, $XX our Compared in margins declined million million declined Despite to by improved revenue

bulk down P&L, remainder. Transaction with revenue XX%. of in the the million, tied decreased net sale revenue, approximately $XX directly XX% Manager. with to of is line Design adjusted of to which making was revenue subscriptions GMV Turning for Revenue when was the the GMV up XX%

was profit million, profit were XX%, year from $XX.X up a X%. Gross ago. down margins Gross XX%

are we lapping in gross period. reminder, the margin charges shipping negatively year which a As profit ago impacted elevated

was XX%, expenses performance XX% efficiency performance marketing our down pulled XX%, and by marketing marketing with Sales a lower of and and quarters percentage from Sales expenses increased thresholds. back with to marketing align ago. spend Consistent up million, lower driven and on were and year revenue headcount. third a the second as $XX.X we demand,

$X.X by driven and X%, expenses down costs. translation million, headcount were lower development Technology lower

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

driven by compensation. General and administrative XX%, stock-based expenses million, were up higher $X

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

increased million, from revenue, transaction losses primarily $X.X X%. provision of for by This X% driven Lastly, up was shipping accommodations. were

due year. as to a of Adjusted spend. by This our well Adjusted versus was performance benefits to million and margin a loss XX% a loss and year-over-year compared driven of shipping lower as loss was reduction change salaries lower million loss a last EBITDA lower XX% $X.X of $X.X September marketing expenses last of year. was EBITDA headcount

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

outlook, of for period. million, the our to Turning XX% first the results quarter-to-date forecast $XX remainder to reflects forecast We our $XXX million to of XX%. and our the guidance down quarter GMV

adjusted Net XX%, $XX.X to $XX.X revenue and million, resulting loss lower primarily driven leverage. operating EBITDA million by to XX% negative margin of XX% of to XX% revenue down in

of uncertainty, value headwinds, a and behavior, conversion converging our Our factors, GMV quarter. average shifting ongoing GMV guidance consumer order economic number we're reflects declining lapping record including

we move comps As will throughout ease. XXXX,

the However, and volatile. macroeconomic challenging remains environment

by offset XXXX by the Turning is health that annual decrease related to our and driving EBITDA margins majority reduction Guidance higher merit adjusted and management our in in employee savings revenue fact March. driven that of and headcount the reflects the cycle premiums expense expenses, lower EBITDA higher margins. ongoing from partially the September insurance substantial are sequential

challenging although growth XXXX look business, international on for increased auctions, made progress a time. these year closing, XXXX. We key we on efficiency. for priorities and your Thank our expansion, was you In to in like foundational supply build

I'll your take to questions. turn the the over operator now to call

Please [Operator line the Instructions] our America. for Curtis of Nagle and go first question, you. Bank Thank from comes with it ahead. moment One of

a assuming Thanks interest? good it first that. guess, just auctions. then and registration or it I the to that and very to just without the guess, guess macro? I the Is of supply? one, morning. I needs get the international incremental What the data right pieces too what's -- the taking I being what good in And that direction. there? obvious, guess And have up? much happen is Is one, going follow-up to hear the continued least are for it driving driving conversion Maybe I after at then part question

Sure.

years is traffic starting do it's We that pay a David. the growth X.X off ago our began to year, primary this real to and On ago continues organic traffic, SEO couple So a is driver traffic. put of of it into effort X about and years so.

the mobile so Mobile On converting been companies on the lowest is side, reflected conversion our web many number. traffic in for us, that majority digital and large of declining web. has like the the that's flip growth of channels,

buyer is conversion, On concentrated conversion. remains to that. really click level The of one on buyer kind just Returning weakness deeper conversion on new resilient.

mostly channel primarily also, it's this think shift, importantly, said, on and I like driven the so I And new macros. buyer, by

way In our improving do, of buckets. the search product, There need falls doing improvements and what terms incremental using focused like we're of kind do enhanced on we really what we're in conversion. are resources to personalization. to the collaborative making another on large one personalization, of It a on, or into filtering whole we're of core are more two things to slew results, majority

areas which then, our is, focus, strategic of both lowering environment. the are course, of We're especially this auctions items, and on conversion. in international important also focused And focused on the actual I squarely prices of received and think, primarily

of derivative conversion while each or in so seen so, quarters been and negative the last quarters. last the improvement the over has couple so-called an And have X we of second declined

that we're traffic. ultimately, with shift the the important so encouraged. are And sources we probably in the macros of factor But said, along think most that

margin. just going Okay. That then And quickly gross on makes the sense.

of seems that to be we a other Anything So for in for and your or else about that headwind, any is should now factors margin 'XX? mix not think gross rates. that's impacting shipping terms just helping

that. I'll this Yes, is take Tom.

by in saw gross we an last driven year. of shipping-related year-over-year, from elevated primarily the expenses lapping actually our margins, So increase

also margins to that. it impacted due improved reductions. by headcount gross was favorably largely September actually year-over-year, So was our but It our

why a you're positive trends margins. year-over-year gross that's on seeing So

Okay. fair we 'XX? for that? should Or Currently, how about think

two I on So that the on right we're the steps quarters full past seeing from what positive not can guidance view going year margins that -- margins to what's is we to say margins. or on sequential are the is revenue will our now to And the give we're EBITDA directly of guidance. we've is in seeing But taken a our costs going that expect in really speak decline what align demand. driving QX, on much quarter-over-quarter which be - to the declines EBITDA to I you're impact

continue QX impact QX Secondarily, that the savings will see some in we our we and will there in will QX, reductions and employee-related positive - some be cost beyond. see particular, higher to offset by are undertook but of we that in costs of that

up, of gone costs savings merit QX's that like and QX health care fees some we increased increases, offset So and things cost actions. somewhat have enjoyed like to those have annual after professional

much. very Thanks Okay.

please. And the Trevor proceed. you. line question, one moment Please with from Thank of Barclays. next comes Young it for our And

Thanks. Great.

some a around First on universe. in of for Is working some already you one historical have there you're with for lot of it? it into, field front coverage looking AI, these that sales whether advanced know in David. on just that sort We're thoughts of our hearing that across data Any I modeling efforts are pricing may there opportunities on days kind which DIBS? the the something mentioned and thing.

second a mean to realized shareholders. rather cash potential any going even of the of just if to review buy-side then likely would Co, no wondering Allen the And sell-side than of one stay that potential just be outcome share. or or & current on But back transactions a commentary perhaps with updates may I'm kind there's or course strategic the to absence even

Yes.

results search work think And right think that is areas that earlier, putting about application are of the and talked conversion something I stuff the of an of is front is One in AI, some stream. via improve buyer. of about I the is product active kind that we the basically a so couple the right of potential to related, of something AI to application. that In of terms consciously. there And

area service and then both our is are interesting where of looking in buyers fraud And compliance areas there other among we're potentially well sellers area as with of the applying terms AI. at and another

of Allen And process. question, then the & second Company in terms your

there's until of know, as if talk something meantime, process. you to I active it at will. As announce, something - it's that an including disconnect the And at looking the sort about and and of believe all of we the can't value have driver have to soon course, the to we but of we business. is the be asset to we options, And company. we're announce, market of strategic between our something current that, And the is uses in all, we capital confirm what can what value changes

Thanks, Great. David.

Thank your next like the comes from you. for Evercore of it One please. Please with Mark Mahaney ISI. question, moment And proceed.

Okay. and buyers? Thanks. obvious it platform kind perspective, waiting interest the want of auctions. customer dramatic And about for? for you? David, ask from does interest where both like want seeing? a are about traction it, And is the ask sellers in to the just they're you're growing on Where the from just wins to look I level what just appetite there's What's I of from is just

customer interest are the, it? places somewhat course, embrace a buyers of reluctant it's about are you. how the Or or and just where and from to is product Thank Just perspective changed where what sellers talk auctions. in the you're level out having push to

is and script increase rates the conversion primary rates. resilient. demand answer have new and side, buyer auctions healthy Again, in So particular, goal the conversion the just the of in relatively buyer first to question, reminder, mentioned as to on as strategic I a been returning the

reason auctions, price has of for conversion the soft. addressing for rates efficient the with vehicle been rates conversion course, of version part. primary do softness most The are In for buyer that. New buyer to most very new in have some

saw see the What parallel we quarter, delivering were of top number and somewhat metrics, goal. softness of like in Engagement in you And about, did digits growth. saw what the the in as is funnel strategic actually grew QX. consumer GMV that sense sequentially to terms overall we in of QX behavior, That the asked the it the of of double strong. was what said, we on a number marketplace fourth terms bids metrics over Mark, whole bidders

through rates through So repeat what of more times to again, make consumers activation higher of we who are we've consumers marketplace. versus those see importantly, buyers activate the than X marketplace. activated that XX% seen auctions are the new purchase is And likely the a roughly X times to

- on a of were the platform. think in We've years, for XX-plus for couple side. growth is having again, as the the said biggest opportunity I auction the quarters, without demand unlock been business XX-plus we an years in to business awareness we for the one, or are:

it a So undo takes lot that. to

kind and support secondly, for on getting embrace then it's of sellers to And on would willingness them to an format price and educating effectively the And side say a supply I auction itself. that, the auctions. there's to

So in who just in the efforts sellers auction items not to list a to part we our manage have those due particular has on relationships. been getting challenge folks the team of

of I way to you - price What price reason theory sellers that again, think, job educating the the will on all to non-auction to the is low the because go a Sellers The high our confirmed possible. And negotiated. that as know, in as tend large majority start is, orders auctions, again, our opposite. the up. are for we we effectively start works marketplace the need on is as better do

expecting they marketplace. opposite required to the So behavior price come which is that's the auction healthy of down, that a for

but So work our is that primary in a - and goal. progress it's

you, Thank David.

Thank on our please. you. JMP And Please Nick with comes Securities. Jones next for of one And it line moment proceed. question, the

number think platform. of see over here should with time? level a in we people questions. I may going kind side out kind guess what guys taking who pressure be to And the Great. are, that of perpetual be do engaged of I Thanks And you levels as demand shaking back and that AOV just coming for that the guess, AOV our down on the about from brought models?

have X of order a the worsening AOV QX, interestingly, our you look performance seen of What in we And X% each if volume all, quarters. down we're last at year-over-year. was seeing first - of

you was directional a on So our performance. AOV, to that gives again, seen kind GMV the we've And the soften. of impact trend balance continue which sense of

the the end, or increasing. $XXX,XXX at On the seen from rather actually GMV over very other we've orders number over $XXX,XXX hand, high the of orders

in So the XX% quarter. grew that

this we think the Overall, from, seeing the orders below fourth to effect in $X,XXX increased the XX% are that percentage of barbell So are in it was I marketplace XX% and quarter.

that of gives again, So dynamic in the the of a you business. sense sort

Where AOV does it said. view inversely bottom that declining proportionate Market you, is not And out? to AOV. thing I the though, down thing. - run from I the point a what don't think know. somewhat of AOV mean, without reason the our I is can we should tell I bring of a that for products then be good on the long that if quality selling, you is compromising we're can size bad

is other over quarters how to that each But relative than current play two next those continuation is we say to AOV. tell the dynamics a several which situation, a the - out where in decline hard to expect of exactly other

term? Thanks. Is international in Got in I on sounds it. to geographies. medium that given it there of just kind the there's pressures right kind kind of kind localization of way macro think of some to your outweigh to trends. mean, of great like the localize potentially near And to about then some it engagement the efforts markets,

happy international. our really with actually efforts in We're exactly. Yes,

was German and in as organic increased from over Germany Just France over the domains fourth both quarter, and traffic XXX% example, up year-over-year. XX% French in and an GMV

in to So clearly, point, business. your outweighing the of the rest of macros kind the

want more it. So behind put continue we're that, really happy to we with to wood and

launching of in interest or they capital new capital in our is of sort think can markets behind particular, putting responsibly intensive. and paid those I because managing markets, the capital be

part in finishing other Our later and kind the new primary then that for of Germany focus launches is of this market expanding markets. France to in and playbook year out on the

sellers, the of have in source are English with Italy fluency currently also great Italian sellers supply. localizing We that most is for specifically don't seller Italy have. part European non-Italian a because the tools

will unlock more we so that And hope that, supply.

original that to goal in demand, playbook out and are. the we yes, with we're where But then into terms new to The of question expand over finish time, markets. happy is

Great. the for questions. taking Thanks

comes Thank Schackartv next And proceed. you. with William Blair. question, Please for line our One from it please. of the moment Ralph

questions. Good Two, morning. the Thanks for if could, please. I taking

growing on you've XX%. XX%, about growth around Just sellers, been listings think I

sure to that coming obviously want having You on board experience. and successful they're make

sort Given macro, macro they are to the you sure a make of experience? that supply tough do the adding how balance onboarding headwinds successful with growth having

OpEx then as your some XXXX. in the we further to And a savings in perhaps talk obviously persists about forward, strides OpEx, OpEx on here your good you if going macro made just maybe and follow-up as or find Thank But sit savings? today you. levers willingness

Sure.

just your pleased really retention high supply that to second fourth then statistic by another way, on the that two I'll at you add I So think our take the one. the in to to growth the does for Tom first question as quarter and the which was turn it And rate, over There's well. mentioned to question. with, is all-time which that we're an speak

Look, sales long lower general, of cycle kind marketplaces, other we have market. is a lower rate, sell-through to This in velocity and a relative right?

sellers don't they're So with sell that going join lot the expectation to a immediately.

really It's sellers, more business the the seen they this adding And added that's is what been that a years we've supply over we've supply. more of the sell. process in many by

- list encourage our to under sell them pricing So joined with focus who to especially to is now, more. our primary sellers test right

not pre-existing currently, to they listed our have same - at date, sellers. rate the The as

couple over months. However, we're making a the seen lot last of concentrated have of efforts and in that we improvements area,

that, So more. to the to able do to will we're we And if need continue sell that. do sellers

On OpEx side, Tom. the this is

mentioned, can critical targets positions. limited cost We our We We did see. roles. marketing in the we that you spend. see efficiency are XXXX, rightsizing increased on actions performance our our impact QX. also had in lot open you structure our to And demand. as QX, in to a for headcount of decision starting the hiring reducing And take our results of number we of reduced as in the of we in difficult So

continue point, if to rationalizing our right here we we of will take today, we to XXXX If off take comfortable actions veer To to be base But And to demand kind we're continue your committed I going corrective demand. to we're cost the now, that with our plan. actions. plan, sit of not rebound. as does

you. Thank great. Okay,

with day.+ may you and conclude you And Good and and session gentlemen, now will conference. I Thank for the you. Thank disconnect. that, Q&A all today's ladies participating,