1stDibs Announces Completion of $25.2 million Share Repurchase Program

Rhea-AI Summary

1stDibs (Nasdaq: DIBS), a prominent online marketplace for design, has completed its $25.2 million share repurchase program. The company bought back approximately 4.9 million shares at an average price of $5.12 per share. This includes 3.0 million shares repurchased from Insight Partners at an average price of $5.23 per share in a private transaction. CEO David Rosenblatt stated that this move enhances shareholder value and positions the company for future growth while maintaining a strong cash position.

Positive

• Successful completion of $25.2 million share repurchase program.
• Repurchased 4.9 million shares at an average price of $5.12 per share.
• 3.0 million shares repurchased from Insight Partners at an average price of $5.23 per share.
• Share repurchase enhances shareholder value by reducing outstanding share count.
• Maintained strong cash position post-repurchase.
• Positioned well for future growth.

Negative

• No immediate mention of revenue growth or profitability achieved yet.
• Significant expenditure of $25.2 million, which could have been used for other investments or business development.

Insights

Financial Analyst

The share repurchase program announced by 1stDibs is a significant move for the company. By buying back approximately 4.9 million shares at an average price of $5.12 per share, the company aims to enhance shareholder value. Such programs often signal management's confidence in the business and its future prospects. In this case, the buyback price is notably lower than the company's intrinsic value, suggesting that management perceives the stock to be undervalued.

Share repurchases reduce the number of outstanding shares, which can increase earnings per share (EPS) and provide a stronger base for future price appreciation. For retail investors, this means their share of the company has potentially increased in value.

However, it's important to consider how the repurchase was funded. Since the company maintained its strong cash position, it indicates that they didn't take on additional debt, which is a positive sign. This careful financial management aligns with their goal of achieving profitability, supporting long-term growth prospects.

Market Research Analyst

From a market perspective, 1stDibs’ share repurchase program could be seen as a trigger for positive sentiment among investors. The total repurchase of $25.2 million involves significant investment back into the company, which often leads to increased market confidence. The fact that a substantial portion of shares was bought from Insight Partners in a privately-negotiated transaction suggests strategic maneuvers to consolidate ownership and may influence market dynamics favorably.

Nevertheless, investors should remain cautious about the broader market conditions. While buybacks can support stock prices in the short term, they don't necessarily address fundamental challenges the company might face. It is essential to monitor subsequent quarterly financial results to see if the projected benefits of the repurchase program materialize.

NEW YORK--(BUSINESS WIRE)-- 1stdibs.com, Inc. (Nasdaq: DIBS), a leading marketplace for extraordinary design, today announced the successful completion of its share repurchase program in which the Company repurchased approximately 4.9 million shares at an average per share price of $5.12 for a total of $25.2 million. This total includes approximately 3.0 million shares repurchased from Insight Partners at an average price per share of $5.23 in a privately-negotiated transaction.

“We are pleased to announce the successful completion of our share repurchase program,” said David Rosenblatt, 1stDibs Chief Executive Officer. “By buying back shares at prices that reflect a significant discount both to the market and to our assessment of intrinsic value, we have enhanced shareholder value as we work towards achieving profitability. This share repurchase program reduced our outstanding share count while maintaining our strong cash position, situating us well for future growth.”

About 1stDibs:
1stDibs is a leading online marketplace for connecting design lovers with highly coveted sellers and makers of vintage, antique, and contemporary furniture, home décor, art, jewelry, watches and fashion.

Forward-Looking Statements

This Press Release contains forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included or incorporated by reference in this Press Release are forward-looking statements. These forward-looking statements may be identified by terms such as “accelerate,” “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “demand,” “estimate,” “expand,” “expect,” “focus,” “intend,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “progress,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms, or other comparable terminology or similar expressions, although not all forward-looking statements may contain such terms. These forward-looking statements include, without limitation, statements regarding the share repurchase program’s effect on the Company’s future growth, and the Company’s work towards achieving profitability. These forward-looking statements are based on the Company’s current expectations and projections about future events and various assumptions, and are not a guarantee that the Company will actually achieve the results, objectives, intentions, or expectations disclosed in the forward-looking statements. These forward-looking statements involve a number of risks and uncertainties or other assumptions, many of which are beyond the Company’s control, that may cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include but are not limited, those related to the Company’s liquidity position and financial performance and macroeconomic conditions or geopolitical events or similar risks which may impact the Company’s performance. These forward-looking statements are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, and as revised and updated by the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Accordingly, you should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this Press Release and, except as may be required by law, the Company undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610436196/en/

Investor Relations Contact:

Kevin LaBuz, Head of Investor Relations & Corporate Development

investors@1stdibs.com

Media Contact:

Jennifer Miller

jennifer.miller@1stdibs.com

Source: 1stdibs.Com, Inc.

FAQ

What did 1stDibs announce in their latest press release?

1stDibs announced the completion of its $25.2 million share repurchase program.

How many shares did 1stDibs buy back in their repurchase program?

1stDibs repurchased approximately 4.9 million shares.

At what average price did 1stDibs buy back its shares?

1stDibs bought back its shares at an average price of $5.12 per share.

How many shares did 1stDibs repurchase from Insight Partners and at what price?

1stDibs repurchased 3.0 million shares from Insight Partners at an average price of $5.23 per share.

What did the CEO of 1stDibs say about the share repurchase program?

CEO David Rosenblatt stated that the share repurchase enhances shareholder value and positions the company well for future growth.

What is the stock symbol for 1stDibs?

The stock symbol for 1stDibs is DIBS.