10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2024

OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to __________

Commission file number 333-256188

1stdibs.com, Inc.

(Exact name of registrant as specified in its charter)

Delaware	94-3389618
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300 Park Avenue South, 10th Floor New York, New York	10010
(Address of Principal Executive Offices)	(Zip Code)

(212) 627-3929

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	DIBS	Nasdaq Global Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x   No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes   o     No  x

As of July 31, 2024, the registrant had 39,693,138 shares of common stock, $0.01 par value per share outstanding, net of treasury stock.

TABLE OF CONTENTS

		Pages
Part I - Financial Information
Item 1.	Financial Statements (Unaudited):	7
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Operations	8
	Condensed Consolidated Statements of Comprehensive Loss	9
	Condensed Consolidated Statements of Stockholders’ Equity	10
	Condensed Consolidated Statements of Cash Flows	11
	Notes to Condensed Consolidated Financial Statements	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
Part II - Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	36
Item 6.	Exhibits Index	36
Signatures		37

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this Quarterly Report on Form 10-Q that are not statements of historical facts, including statements regarding our future results of operations and financial position, business strategy and plans, objectives of management for future operations, long term operating expenses, and expectations for capital requirements, may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “can,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “target,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

•our future financial performance, including our expectations regarding our net revenue, cost of revenue, operating expenses, and our ability to achieve and maintain future profitability, in particular with respect to the impacts of inflation, macroeconomic uncertainty, and geopolitical instability;

•our ability to effectively manage or sustain our growth and to effectively expand our operations, including entering and scaling our presence internationally;

•our growth strategies, plans, objectives and goals;

•the market demand for the products offered on our online marketplace, including vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion, new and authenticated luxury design products in general, and the online market for these products;

•our ability to compete with existing and new competitors in existing and new markets;

•our ability to attract and retain sellers and buyers;

•our ability to increase the supply of luxury design products offered through our online marketplace;

•our ability to timely and effectively scale our operations;

•our ability to successfully achieve and maintain market acceptance of our 1stDibs Auctions offering and to anticipate and manage the risks associated therewith;

•our ability to develop and protect our brand;

•our ability to comply with laws and regulations;

•our expectations regarding outstanding litigation;

•our expectations and management of future growth;

•our expectations concerning relationships with third parties;

•economic and industry trends, projected growth, or trend analysis;

•our estimated market opportunity;

•our ability to add capacity, capabilities, and automation to our operations;

•the increased expenses associated with being a public company;

•the effect of catastrophic events or geopolitical conditions, such as the ongoing impact from the COVID-19 pandemic, including the uncertainty with respect to potential resurgences, on our business and operations;

•our ability to obtain, maintain, protect, and enforce our intellectual property rights and successfully defend against claims of infringement, misappropriation, or other violations of third-party intellectual property;

•the availability of capital to grow our business;

•our ability to successfully defend any future litigation brought against us;

•our ability to implement and maintain effective policies, procedures, and internal controls;

•adverse economic or market conditions that may harm our business;

•exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;

•the dependence of our business on our ability to attract and retain talented employees;

•potential changes in laws and regulations applicable to us or our sellers, or our sellers’ ability to comply therewith; and

•the amount of time for which we expect our cash, cash equivalents, and short-term investment balances and other available financial resources to be sufficient to fund our operations.

These forward-looking statements reflect our management’s beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this Quarterly Report on Form 10-Q and are subject to risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, but not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, Part I, Item 1A, “Risk Factors,” as well as those discussed elsewhere in this Quarterly Report. As a result of these factors, we cannot assure you that the forward-looking statements in this Quarterly Report on Form 10-Q will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that such information provides a reasonable basis for these statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on them.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Such forward-looking statements relate only to events as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.

You should read this Quarterly Report on Form 10-Q and the documents that we reference and have filed as exhibits with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking statements in this Quarterly Report on Form 10-Q by these cautionary statements.

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

1STDIBS.COM, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share amounts)

(Unaudited)

	June 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	23,807	$	37,395
Short-term investments	86,825		101,926
Accounts receivable, net of allowance for doubtful accounts of $154 and $188 at June 30, 2024 and December 31, 2023, respectively	681		643
Prepaid expenses	3,766		3,032
Receivables from payment processors	3,303		2,670
Other current assets	2,661		2,214
Total current assets	121,043		147,880
Restricted cash, non-current	3,620		3,580
Property and equipment, net	3,987		3,384
Operating lease right-of-use assets	21,481		19,655
Goodwill	4,242		4,116
Other assets	3,209		2,200
Total assets	$	157,582	$	180,815
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,255	$	3,580
Payables due to sellers	8,134		6,521
Accrued expenses	9,439		10,883
Operating lease liabilities, current	3,932		3,107
Other current liabilities	3,332		3,618
Total current liabilities	27,092		27,709
Operating lease liabilities, non-current	20,079		18,812
Other liabilities	25		6
Total liabilities	47,196		46,527
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized as of June 30, 2024 and December 31, 2023; zero shares issued and outstanding as of June 30, 2024 and December 31, 2023	—		—
Common stock, $0.01 par value; 400,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 41,619,773 and 40,738,619 shares issued as of June 30, 2024 and December 31, 2023, respectively; and 36,693,138 and 39,915,136 outstanding as of June 30, 2024 and December 31, 2023, respectively	416		407
Treasury stock, at cost; 4,926,635 and 823,483 shares as of June 30, 2024 and December 31, 2023, respectively	(25,373)		(3,496)
Additional paid-in capital	457,274		451,282
Accumulated deficit	(321,459)		(313,719)
Accumulated other comprehensive loss	(472)		(186)
Total stockholders’ equity	110,386		134,288
Total liabilities and stockholders’ equity	$	157,582	$	180,815

See accompanying notes to the condensed consolidated financial statements.

7

1STDIBS.COM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net revenue	$	22,235	$	20,921	$	44,297	$	43,099
Cost of revenue	6,290		6,327		12,366		13,634
Gross profit	15,945		14,594		31,931		29,465
Operating expenses:
Sales and marketing	9,265		9,791		18,434		19,596
Technology development	5,470		6,889		10,215		12,684
General and administrative	6,882		7,463		13,892		15,551
Provision for transaction losses	822		888		1,236		2,252
Total operating expenses	22,439		25,031		43,777		50,083
Loss from operations	(6,494)		(10,437)		(11,846)		(20,618)
Other income, net:
Interest income	1,646		1,645		3,338		3,176
Other, net	415		472		772		989
Total other income, net	2,061		2,117		4,110		4,165
Net loss before income taxes	(4,433)		(8,320)		(7,736)		(16,453)
Provision for income taxes	(4)		—		(4)		—
Net loss	$	(4,437)	$	(8,320)	(7,740)		(16,453)
Net loss per share—basic and diluted	$	(0.12)	$	(0.21)	$	(0.20)	$	(0.42)
Weighted average common shares outstanding—basic and diluted	38,517,785		39,642,725		39,131,456		39,487,496

See accompanying notes to the condensed consolidated financial statements.

8

1STDIBS.COM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)
Other comprehensive loss:
Foreign currency translation adjustment, net of tax of $0 for each of the three and six months ended June 30, 2024 and 2023	(7)		24		(23)		43
Unrealized losses on short-term investments, net of tax of $0 for each of the three and six months ended June 30, 2024 and 2023	(71)		(85)		(263)		(120)
Comprehensive loss	$	(4,515)	$	(8,381)	$	(8,026)	$	(16,530)

See accompanying notes to the condensed consolidated financial statements.

9

1STDIBS.COM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share amounts)

(Unaudited)

	Three Months Ended June 30, 2024
	Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount
Balances as of March 31, 2024	39,732,251	$	411	$	454,432	$	(317,022)	$	(394)	$	(6,411)	$	131,016
Issuance of common stock for exercise of stock options	21,588	—		83		—		—		—		83
Vested restricted stock units converted to common shares, net of shares withheld for employee taxes	489,566	5		(1,307)		—		—		—		(1,302)
Stock-based compensation	—	—		4,066		—		—		—		4,066
Repurchase of common stock	(3,550,267)	—		—		—		—		(18,962)		(18,962)
Other comprehensive loss	—	—		—		—		(78)		—		(78)
Net loss	—	—		—		(4,437)		—		—		(4,437)
Balances as of June 30, 2024	36,693,138	$	416	$	457,274	$	(321,459)	$	(472)	$	(25,373)	$	110,386

	Six Months Ended June 30, 2024
	Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount
Balances as of December 31, 2023	39,915,136	$	407	$	451,282	$	(313,719)	$	(186)	$	(3,496)	$	134,288
Issuance of common stock for exercise of stock options	193,862	2		784		—		—		—		786
Vested restricted stock units converted to common shares, net of shares withheld for employee taxes	687,292	7		(1,980)		—		—		—		(1,973)
Stock-based compensation	—	—		7,188		—		—		—		7,188
Repurchase of common stock	(4,103,152)	—		—		—		—		(21,877)		(21,877)
Other comprehensive loss	—	—		—		—		(286)		—		(286)
Net loss	—	—		—		(7,740)		—		—		(7,740)
Balances as of June 30, 2024	36,693,138	$	416	$	457,274	$	(321,459)	$	(472)	$	(25,373)	$	110,386

	Three Months Ended June 30, 2023
	Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount
Balances as of March 31, 2023	39,509,346	$	395	$	442,170	$	(299,153)	$	(372)	$	—	$	143,040
Issuance of common stock for exercise of stock options	1,000	—		4		—		—		—		4
Vested restricted stock units converted to common shares	526,672	5		(5)		—		—		—		—
Stock-based compensation	—	—		3,311		—		—		—		3,311
Other comprehensive loss	—	—		—		—		(61)		—		(61)
Net loss	—	—		—		(8,320)		—		—		(8,320)
Balances as of June 30, 2023	40,037,018	$	400	$	445,480	$	(307,473)	$	(433)	$	—	$	137,974

	Six Months Ended June 30, 2023
	Common Stock			Additional Paid - In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount
Balances as of December 31, 2022	39,260,193	$	393	$	439,005	$	(291,020)	$	(356)	$	—	$	148,022
Issuance of common stock for exercise of stock options	8,978	—		35		—		—		—		35
Vested restricted stock units converted to common shares	767,847	7		(7)		—		—		—		—
Stock-based compensation	—	—		6,447		—		—		—		6,447
Other comprehensive loss	—	—		—		—		(77)		—		(77)
Net loss	—	—		—		(16,453)		—		—		(16,453)
Balances as of June 30, 2023	40,037,018	$	400	$	445,480	$	(307,473)	$	(433)	$	—	$	137,974

See accompanying notes to the condensed consolidated financial statements.

10

1STDIBS.COM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(7,740)	$	(16,453)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	932		1,366
Stock-based compensation expense	7,106		6,358
Provision for transaction losses, returns and refunds	625		549
Amortization of costs to obtain revenue contracts	160		162
Amortization of operating lease right-of-use assets	1,661		1,268
Accretion of discounts and amortization of premiums on short-term investments, net	(1,499)		(1,241)
Other, net	2		(219)
Changes in operating assets and liabilities:
Accounts receivable	(193)		46
Prepaid expenses and other current assets	(1,271)		(449)
Receivables from payment processors	(633)		155
Other assets	(1,181)		(172)
Accounts payable and accrued expenses	(3,601)		1,297
Payables due to sellers	1,611		(838)
Operating lease liabilities	(1,394)		(1,366)
Other current liabilities and other liabilities	(290)		269
Net cash used in operating activities	(5,705)		(9,268)
Cash flows from investing activities:
Maturities of short-term investments	49,177		11,000
Sales of short-term investments	18,667		—
Purchases of short-term investments	(51,507)		(110,411)
Development of internal-use software	(797)		(856)
Purchases of property and equipment	(554)		(25)
Other, net	297		—
Net cash provided by (used in) investing activities	15,283		(100,292)
Cash flows from financing activities:
Proceeds from exercise of stock options	786		35
Payments for repurchase of common stock	(21,877)		—
Payments for taxes related to net share settlement of stock-based compensation awards	(1,973)		—
Net cash (used in) provided by financing activities	(23,064)		35
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(62)		227
Net decrease in cash, cash equivalents, and restricted cash	(13,548)		(109,298)
Cash, cash equivalents, and restricted cash at beginning of the period	40,975		158,043
Cash, cash equivalents, and restricted cash at end of the period	$	27,427	$	48,745
Supplemental disclosure of non-cash activities:
Recording of right of use asset	$	3,483	$	—
Recording of lease liability	$	(3,483)	$	—

See accompanying notes to the condensed consolidated financial statements.

11

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

Description of Business

1stdibs.com, Inc. (“1stDibs” or the “Company”) is one of the world’s leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage & antique furniture, contemporary furniture, home décor, jewelry, watches, art, and fashion. The Company’s thoroughly vetted seller base, in-depth marketing content, and custom-built technology platform create trust in the Company’s brand and facilitate high-consideration purchases of luxury design products online. By disrupting the way these items are bought and sold, 1stDibs is both expanding access to, and growing the market for, luxury design products.

The Company was incorporated in the state of Delaware on March 10, 2000 and is headquartered in New York, NY.

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.

The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity, and cash flows for the interim periods. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2024.

There have been no material changes to the Company's significant accounting policies as described in the Form 10-K.

Restructuring Charges

In June 2023, the Company announced a workforce reduction designed to reduce operating costs and realign investment priorities involving the reduction of approximately 20% of the Company’s global workforce. As a result of the reduction, the Company incurred approximately $2.0 million in non-recurring restructuring charges in the three months ended June 30, 2023, consisting primarily of employee severance and benefits costs. As of June 30, 2024, all $2.0 million has been paid.

During the three months ended June 30, 2024, the Company incurred $0.4 million of additional employee severance and benefits costs which is anticipated to be paid over the next 12 months. The following table displays a rollforward of the charges and payments to the accrued balance as of June 30, 2024:

(in thousands)	Restructuring Charges
Balance, December 31, 2023	$	396
Restructuring charges	372
Cash payments	(396)
Balance, June 30, 2024	$	372

12

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The expense is included within the respective financial statement line items on the condensed consolidated statements of operations as shown in the table below:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	—	$	135	$	—	$	135
Sales and marketing	—		789		—		789
Technology development	—		1,044		—		1,044
General and administrative	372		36		372		36
Total	$	372	$	2,004	$	372	$	2,004

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, impairment assessment of goodwill, capitalization of internal-use software and determination of useful lives, income taxes, and the valuation of stock-based compensation and leases. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.

Cash, Cash Equivalents, and Restricted Cash

The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented:

(in thousands)	June 30, 2024		June 30, 2023
Cash and cash equivalents	$	23,807	$	45,410
Restricted cash, non-current	3,620		3,335
Total cash, cash equivalents, and restricted cash	$	27,427	$	48,745

The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. As of June 30, 2024, the Company’s restricted cash relates to $3.6 million in Letters of Credit for its office leases in New York, New York. During the three and six months ended June 30, 2024, the Company purchased $8.9 million and $25.6 million of available-for-sale securities classified as cash equivalents, respectively. During the three and six months ended June 30, 2023, the Company purchased $19.9 million and $31.8 million of available-for-sale securities classified as cash equivalents, respectively. The carrying value of the restricted cash approximates fair value.

13

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard will require all public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items on an annual and interim basis. The guidance requires a public entity to disclose the significant expense categories and amounts that are regularly provided to the chief operating decision-maker. This standard is effective for the Company’s annual report ending December 31, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance and while it only has one reportable segment, it does expect to enhance its current disclosures in the notes to the financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures. The standard will require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new standard is effective for the Company’s annual report ending December 31, 2025. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

2. Fair Value of Financial Instruments

Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value require the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques.

14

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Short-term investments and certain cash equivalents consist of investments in debt securities that are available-for-sale. The table below segregates all assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date:

	June 30, 2024
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	1,863	$	—	$	—	$	1,863
Commercial paper	—		1,979		—		1,979
U.S. Treasury securities	—		2,196		—		2,196
Total cash equivalents	$	1,863	$	4,175	$	—	$	6,038
Short-term investments:
Commercial paper	$	—	$	6,151	$	—	$	6,151
Corporate notes	—		16,542		—		16,542
U.S. Treasury securities	—		10,705		—		10,705
U.S. Government agency securities	—		53,427		—		53,427
Total short-term investments	$	—	$	86,825	$	—	$	86,825

	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	5,797	$	—	$	—	$	5,797
U.S. Treasury securities	—		4,991		—		4,991
Total cash equivalents	$	5,797	$	4,991	$	—	$	10,788
Short-term investments:
Commercial paper	$	—	$	18,112	—		18,112
Corporate notes	—		7,641		—		7,641
U.S. Treasury securities	—		11,971		—		11,971
U.S. Government agency securities	—		64,202		—		64,202
Total short-term investments	$	—	$	101,926	$	—	$	101,926

There were no transfers between Level 1, Level 2, or Level 3 during the three and six months ended June 30, 2024 and 2023.

3. Revenue Recognition

The following table summarizes the Company’s net revenue by type of service for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Seller marketplace services	$	21,962	$	20,761	$	43,800	$	42,772
Other services	273		160		497		327
Total net revenue	$	22,235	$	20,921	$	44,297	$	43,099

The Company generates net revenue from seller marketplace services and other services. Seller marketplace services primarily consist of marketplace transactions, subscriptions, and listing fees. Other services primarily consist of advertising revenues generated from displaying ads on the Company’s online marketplace.

15

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of June 30, 2024, the Company recorded $0.4 million of costs to obtain revenue contracts, of which $0.2 million was included in other current assets, and $0.2 million was included in other assets. As of December 31, 2023, the Company recorded $0.5 million of costs to obtain revenue contracts, of which $0.3 million was included in other current assets, and $0.2 million was included in other assets. Amortization of costs to obtain revenue contracts totaled $0.1 million and $0.2 million for the three and six months ended June 30, 2024 and 2023, respectively. The Company periodically reviews the costs to obtain revenue contracts to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these costs to obtain revenue contracts.

4. Short-Term Investments

The following table summarizes the estimated value of the Company’s short-term investments as of the periods presented:

	June 30, 2024
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	6,156	$	—	$	(5)	$	6,151
Corporate notes	16,595		1		(54)		16,542
U.S. Treasury securities	10,733		—		(28)		10,705
U.S. Government agency securities	53,507		1		(81)		53,427
Total short-term investments	$	86,991	$	2	$	(168)	$	86,825

	December 31, 2023
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	18,101	$	14	$	(3)	$	18,112
Corporate notes	7,621		20		—		7,641
U.S. Treasury securities	11,975		2		(6)		11,971
U.S. Government agency securities	64,134		89		(21)		64,202
Total short-term investments	$	101,831	$	125	$	(30)	$	101,926

The Company recognized less than $0.1 million of realized losses related to sales of $18.7 million available-for-sale debt securities during the three and six months ended June 30, 2024. The Company evaluates securities for expected credit losses on a quarterly basis with consideration given to the financial condition and near-term prospects of the issuer, whether the Company intends to sell the securities, and whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis. The Company did not recognize any credit losses related to available-for-sale debt securities during the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell these before recovery. There were no securities in a continuous unrealized loss position for 12 months or longer. As of June 30, 2024, the fair value of short-term investments by remaining contractual maturity consisted of the following:

(in thousands)	Fair Value
Remaining maturity date one year or less	$	66,352
Remaining maturity date greater than one year	20,473
Total short-term investments	$	86,825

16

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. Property and Equipment, net

As of June 30, 2024 and December 31, 2023, property and equipment, net consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Internal-use software	$	20,130	$	19,541
Leasehold improvements	4,029		3,605
Furniture and fixtures	68		1,131
Computer equipment and software	550		919
Software in progress	853		569
Total property and equipment, gross	25,630		25,765
Less: Accumulated depreciation and amortization	(21,643)		(22,381)
Total property and equipment, net	$	3,987	$	3,384

As of June 30, 2024 and December 31, 2023, the net book value of internal-use software was $2.4 million and $2.7 million, respectively. Depreciation and amortization expense related to the Company’s property and equipment totaled $0.5 million and $0.9 million for the three and six months ended June 30, 2024 , respectively, which included amortization expense for internal-use software of $0.4 million and $0.8 million, respectively. Depreciation and amortization expense related to the Company’s property and equipment totaled $0.4 million and $1.4 million for the three and six ended June 30, 2023, respectively, which included amortization expense for internal-use software of $0.4 million and $1.3 million, respectively.

6. Accrued Expenses

As of June 30, 2024 and December 31, 2023, accrued expenses consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Shipping	$	2,792	$	2,934
Compensation & benefits	1,779		3,164
Sales & use taxes payable	1,298		1,534
Allowance for transaction losses	914		1,172
Payment processor fees	342		557
Allowance for e-commerce returns	404		401
Other	1,910		1,121
Total accrued expenses	$	9,439	$	10,883

7. Leases

The Company’s operating lease arrangements are principally for office spaces in New York City. As of June 30, 2024, the Company had $21.5 million of operating lease right-of-use assets, $3.9 million and $20.1 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements, included in the measurement of lease liabilities, had a weighted-average remaining lease term of 5.3 years, a weighted-average discount rate of 6.1%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. As of December 31, 2023, the Company had $19.7 million of operating lease right-of-use assets, $3.1 million and $18.8 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet.

In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). The Sublease commenced on October 1, 2023 for approximately 78% of the rentable square feet and expanded to 100% of the rentable square feet on January 15, 2024. The sublease ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease, and contains an option for the lessee to terminate on the third anniversary of the commencement date. The Sublease contains a five month rent abatement provision, with an additional abatement against fixed rent for the sixth calendar month. In addition, the subtenant will be responsible for its proportionate share of certain defined expenses, including increases in taxes after the base year, as well as certain electric, heating, ventilation, and air conditioning charges. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations.

17

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In November 2023, the Company entered into a lease agreement, as the lessee, for approximately 13,000 square feet for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an initial seven month rent abatement period. The Lease Agreement includes an option for the Company to extend the lease for an additional five years.

During the three and six months ended June 30, 2024, the Company paid $1.1 million and $2.1 million for amounts included in the measurement of lease liabilities, and $1.0 million and $2.0 million during the three and six months ended June 30, 2023, respectively. The Company did not enter into any new lease arrangements as a lessee during the three and six months ended June 30, 2024 and 2023.

The following table summarizes total lease expense, net for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	1,224	$	966	$	2,305	$	1,988
Short-term lease expense	12		33		12		54
Variable lease expense	328		321		608		576
Total lease expense	1,564		1,320		2,925		2,618
Sublease income	(1,054)		—		(1,753)		—
Total lease expense, net	$	510	$	1,320	$	1,172	$	2,618

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of June 30, 2024, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2024 (remaining)	$	(2,538)	$	1,689
2025	(5,380)		3,435
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
Thereafter	(4,292)		3,718
Total (payments) cash receipts	$	(27,999)	$	19,565
Less: imputed interest	3,988
Total lease liabilities	$	(24,011)

8. Other Current Liabilities

As of June 30, 2024 and December 31, 2023, other current liabilities consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Sales and other non-income tax contingencies	$	2,656	$	2,462
Buyer deposits	283		377
Other	393		779
Total other current liabilities	$	3,332	$	3,618

18

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. Equity

Preferred Stock

Effective June 14, 2021, in connection with the closing of the Company’s Initial Public Offering (“IPO”), the Company’s board of directors (“Board”) is authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value per share, in one or more series. The Company's Board has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. As of June 30, 2024 and December 31, 2023, no shares of preferred stock were issued or outstanding.

Common Stock

As of June 30, 2024 and December 31, 2023, the Company had authorized 400,000,000 shares of voting common stock, $0.01 par value per share. Each holder of the Company's common stock is entitled to one vote for each share on all matters to be voted upon by the stockholders and there are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Board out of legally available funds. If there is a liquidation, dissolution, or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. The rights, preferences, and privileges of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future.

As of June 30, 2024 and December 31, 2023, the Company had reserved shares of common stock for issuance in connection with the following:

	June 30, 2024	December 31, 2023
Options to purchase common stock	3,577,716	3,831,710
Restricted stock units outstanding	5,336,839	3,400,489
Shares available for future grant under the 2021 Plan	2,186,896	3,119,122
Shares available for future grant under the ESPP	1,971,655	1,572,504
Total	13,073,106	11,923,825

Treasury Stock

As of June 30, 2024, the Company had 4,926,635 shares of treasury stock carried at its cost basis of $25.4 million. In June 2024, the Board authorized an increase to the Company’s Stock Repurchase Program to an aggregate repurchase amount of $25.5 million, and subsequently announced the completion of its repurchase plan. As of December 31, 2023, the Company had 823,483 shares of treasury stock carried at its cost basis of $3.5 million.

10. Stock-based compensation

2011 Option Plan

The Company adopted the 2011 Stock Option and Grant Plan (the “2011 Plan”) on September 2, 2011 and amended and restated the plan on December 14, 2011. The 2011 Plan provided for the Company to grant incentive stock options or non-qualified stock options, restricted stock awards, and other stock-based awards to its employees, directors, officers, outside advisors, and non-employee consultants. At the time of grant, the options issued to new employees pursuant to the 2011 Plan expire ten years from the date of grant and generally vest over four years, with 25% vesting on the first anniversary and the balance vesting ratably over the remaining 36 months. Options issued pursuant to the 2011 Plan expire ten years from the date of grant and generally vest ratably over 48 months.

The 2011 Plan was administered by the Compensation Committee of the Board. The exercise prices, vesting, and other restrictions were determined at the discretion of Compensation Committee of the Board.

Following the completion of the Company’s IPO in June 2021, no additional awards and no shares of the Company’s common stock remain available for future issuance under the 2011 Plan. However, the 2011 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder.

19

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2021 Stock Incentive Plan

In May 2021, the Company's Board adopted, and its stockholders approved, the 2021 Stock Incentive Plan (the “2021 Plan”), which became effective upon the SEC declaring the Company’s IPO registration statement effective. The 2021 Plan provides for the grant of incentive stock options (“ISOs”), non-statutory stock options, restricted share awards, stock unit awards (“RSUs”), stock appreciation rights, cash-based awards, and performance-based stock awards, or collectively, stock awards. ISOs may be granted only to the Company’s employees, including officers, and the employees of its parent or subsidiaries. All other stock awards may be granted to the Company’s employees, officers, non-employee directors, consultants, and the employees and consultants of its parent, subsidiaries, and affiliates. Depending on the nature of the award granted, the vesting terms may differ. Generally for new hire awards, the requisite service period for RSUs to vest is over four years from the grant date, with 25% vesting on the first anniversary and the balance vesting ratably on a quarterly basis over the remaining vesting period. Generally, all additional RSUs vest ratably on a quarterly basis over three or four years beginning on the three month anniversary from the grant date. For RSU grants to members of our Board of Directors, initial awards vest ratably on an annual basis over three years, and over one year for our Board of Directors annual awards.

The aggregate number of shares of the Company’s common stock that may be issued pursuant to stock awards under the 2021 Plan will not exceed the sum of (x) 4,333,333 shares (as adjusted for stock splits, stock dividends, combinations, and the like), plus (y) the sum of (1) the number of reserved shares not issued or subject to outstanding awards under the 2011 Plan on the effective date of the 2021 Plan and (2) the number of shares subject to outstanding stock awards granted under the 2011 Plan and that, following the effective date of the 2021 Plan, (A) are subsequently forfeited or terminated for any reason before being exercised or settled, (B) are not issued because such stock award is settled in cash, (C) are subject to vesting restrictions and are subsequently forfeited, (D) are withheld or reacquired to satisfy the applicable exercise, strike, or purchase price, or (E) are withheld or reacquired to satisfy a tax withholding obligation, plus (z) an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022 and ending on, and including, January 1, 2031, in an amount equal to the lesser of (i) 5% of the outstanding shares on the last day of the immediately preceding fiscal year or (ii) such lesser amount that the Compensation Committee of the Board determines for purposes of the annual increase for that fiscal year. On January 1, 2024, the number of shares of common stock available for issuance under the 2021 Plan was automatically increased according to its terms by 1,995,756 shares.

As of June 30, 2024, 2,186,896 shares were available for future grants of the Company’s common stock.

Stock Options

The following table summarizes the Company’s stock option activity since December 31, 2023:

	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	3,831,710	$	6.97	5.8	$	826
Granted	—	$	—
Exercised	(193,862)	$	4.05
Cancelled/Forfeited	(60,132)	$	9.05
Outstanding as of June 30, 2024	3,577,716	$	7.09	5.6	$	477
Options exercisable as of June 30, 2024	2,910,287	$	6.86	5.2	$	477
Options vested and expected to vest as of June 30, 2024	3,577,716	$	7.09	5.6	$	477

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for all stock options that had exercise prices lower than the fair value of the Company’s common stock.

There were no stock options granted during the three and six months ended June 30, 2024 and 2023. The aggregate intrinsic value of stock options exercised was less than $0.1 million and $0.3 million during the three and six months ended June 30, 2024, and less than $0.1 million during each of the three and six months ended June 30, 2023, respectively. The total fair value of stock options vested was $1.0 million and $1.7 million during the three and six months ended June 30, 2024, and $1.2 million and $2.0 million during the three and six months ended June 30, 2023, respectively.

20

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The stock options granted during the fiscal year ended December 31, 2021 included 615,997 stock options granted to executive officers that include a performance condition related to a sale event or initial public offering occurring before December 31, 2021 in addition to the standard service condition. These options will vest over four years, with approximately 21% vested on January 1, 2022, and the balance vesting ratably over the remaining 38 months. Stock-based compensation expense of $0.2 million and $0.3 million was recognized for options having a performance condition during the three and six months ended June 30, 2024 and 2023, respectively.

Restricted Stock Units

The following table summarizes the activity related to the Company's restricted stock units:

	Outstanding Restricted Stock Units	Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2023	3,400,489	$	5.40
Granted	3,045,082	5.86
Vested	(1,051,764)	5.50
Cancelled	(56,968)	5.89
Outstanding as of June 30, 2024	5,336,839	$	5.64

The estimated weighted-average grant date fair value of restricted stock units granted was $5.55 and $5.86 per share for the three and six months ended June 30, 2024, and $3.65 and $3.95 per share for the three and six months ended June 30, 2023, respectively. The total grant date fair value of restricted stock units vested was $3.9 million and $5.8 million for the three and six months ended June 30, 2024, and $3.1 million and $5.2 million for the three and six months ended June 30, 2023, respectively.

Employee Stock Purchase Plan

In May 2021, the Company's Board adopted, and its stockholders approved, the Company's 2021 Employee Stock Purchase Plan (the "ESPP"). A total of 1,971,655 shares of the Company's authorized but unissued or reacquired shares of its common stock (as adjusted for stock splits, stock dividends, combinations, and the like) are available for issuance under the ESPP. The number of shares of the Company's common stock that will be available for issuance under the ESPP also includes an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022, equal to the least of: (i) 1% of the outstanding shares of the Company’s common stock on such date, (ii) 400,000 shares (as adjusted for stock splits, stock dividends, combinations, and the like) or (iii) a lesser amount determined by the Compensation Committee or the Company’s Board of Directors. On January 1, 2024, the number of shares of common stock available for issuance under the ESPP was automatically increased according to its terms by 399,151 shares.

During regularly scheduled “offerings” under the ESPP, participants may purchase the Company’s common stock through payroll deductions, up to a maximum of 15% of their eligible compensation, or such lower limit as may be determined by the Compensation Committee from time to time. Participants will be able to withdraw their accumulated payroll deductions prior to the end of the offering period in accordance with the terms of the offering. Participation in the ESPP will end automatically on termination of employment. The purchase price will be specified pursuant to the offering, but cannot, under the terms of the ESPP, be less than 85% of the fair market value per share of the Company’s common stock on either the offering date or on the purchase date, whichever is less. The fair market value of the Company’s common stock for this purpose will generally be the closing price on Nasdaq (or such other exchange as the Company’s common stock may be traded at the relevant time) for the date in question, or if such date is not a trading day, for the last trading day before the date in question. As of June 30, 2024, an initial offering period has not commenced, and for the three and six months ended June 30, 2024 and 2023, no shares of common stock were purchased under the ESPP.

21

1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Stock-Based Compensation Expense

The following table summarizes the classification of the Company’s stock-based compensation expense in the condensed consolidated statements of operations:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	87	$	88	$	167	$	237
Sales and marketing	980		742		1,711		1,449
Technology development	1,037		959		1,774		2,010
General and administrative	1,912		1,463		3,454		2,662
Total stock-based compensation expense	$	4,016	$	3,252	$	7,106	$	6,358

Stock-based compensation capitalized in connection with the Company’s internal-use software was less than $0.1 million for each of the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, total unrecognized compensation expense related to unvested stock-based awards was $32.2 million, which is expected to be recognized over a weighted-average period of 2.5 years.

11. Income Taxes

The income tax provision was immaterial for the three and six months ended June 30, 2024 and 2023 due to the net loss before income taxes incurred for the year ended December 31, 2023 and expected to be incurred for the year ending December 31, 2024, as well as the Company’s continued maintenance of a full valuation allowance against its net deferred tax assets. There were no material liabilities for interest and penalties accrued as of June 30, 2024.

12. Net Loss Per Share

The following table summarizes the computation of basic and diluted net loss per share for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2024		2023		2024		2023
Numerator:
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)
Denominator:
Weighted average common shares outstanding—basic and diluted	38,517,785		39,642,725		39,131,456		39,487,496
Net loss per share—basic and diluted	$	(0.12)	$	(0.21)	$	(0.20)	$	(0.42)

The Company’s potentially dilutive securities, which include outstanding stock options and restricted stock units have been excluded from the computation of diluted net loss per share from each period as including them would have had an anti-dilutive effect. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potentially dilutive securities for each period presented:

	June 30,
	2024	2023
Options to purchase common stock	3,577,716	4,003,501
Restricted stock units	5,336,839	4,529,829
Total	8,914,555	8,533,330

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1STDIBS.COM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. Commitments and Contingencies

Contractual Obligations

The Company has $31.8 million of non-cancelable contractual commitments as of June 30, 2024, primarily related to its operating lease agreements for both its current and former corporate headquarters in New York, NY, not including any offset for sublease income, as well as other software and support services. For those agreements with variable terms, the Company does not estimate what the total obligation may be beyond any minimum obligations. The following table represents the Company’s commitments under its purchase obligations as of June 30, 2024 (in thousands):

Fiscal Year Ending December 31,	Lease Obligations		Other Obligations		Total Obligations
2024 (remaining)	$	2,538	$	1,203	$	3,741
2025	5,380		1,479		6,859
2026	5,263		861		6,124
2027	5,263		273		5,536
2028	5,263		19		5,282
Thereafter	4,292		—		4,292
Total	$	27,999	$	3,835	$	31,834

Legal Proceedings

The Company is subject to various claims and contingencies, which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters, and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where the Company believes a conclusion to the matter will be reached. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible. The Company does not believe that it is party to any pending legal proceedings that are likely to have a material effect on its business, financial condition, or results of operations.

Indemnification

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board and officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with the consolidated financial statements and related notes that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements based upon current plans, expectations, and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.

Company Overview

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

1stDibs began in 2000 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. Soon thereafter, we moved our headquarters to New York City and focused primarily on adding U.S.-based sellers to our site. 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. In over two decades of operating history, we have strengthened our brand and deepened our seller relationships. We launched our e-commerce platform in 2013 and transitioned to a full e-commerce marketplace model in 2016. Since inception we have expanded our offerings to other verticals such as home decor, jewelry, watches, art, and fashion. 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. Our sellers use our platform to manage their inventory, build their digital marketing presence, and communicate and negotiate prices directly with buyers. We provide our buyers a trusted purchase experience with our user-friendly interface, dedicated specialist support, and 1stDibs Promise, our comprehensive buyer protection program. 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. 

Key Operating and Financial Metrics

We use the following key metrics and non-GAAP measures to evaluate our performance, identify trends affecting our business, and make strategic decisions:

•GMV;

•Number of Orders;

•Active Buyers; and

•Adjusted EBITDA (see “Non-GAAP Financial Measures” for a discussion of Adjusted EBITDA and a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA).

For GMV, Number of Orders, and Active Buyers, these metrics are based on internal company data, assumptions, and estimates and are used in managing our business. We believe that these figures are reasonable estimates, and we actively take measures to improve their accuracy, such as eliminating known fictitious or duplicate accounts. There are, however, inherent challenges in gathering accurate data across large online and mobile populations. For example, individuals may have multiple email accounts in violation of our terms of service, which would result in an Active Buyer being counted more than once, thus impacting the accuracy of our number of Active Buyers. In addition, certain metrics, such as the number of Active Buyers, and Number of Orders, and GMV are measured based on such numbers as reported in a given month, minus cancellations within that month. As we do not retroactively adjust such numbers for cancellations occurring after the month, the metrics presented do not reflect subsequent order cancellations. We regularly review and may adjust our processes for calculating these metrics to

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improve their accuracy. These key operating and financial metrics may vary from period to period and should not be viewed as indicative of other metrics.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
GMV	$	91,514	$	89,864	$	183,200	$	186,922
Number of Orders	33,952		32,401		69,267		67,786
Active Buyers	61,155		64,984		61,155		64,984
Adjusted EBITDA (unaudited)	$	(1,589)	$	(4,579)	$	(3,383)	$	(9,833)

Gross Merchandise Value

We define GMV as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and sales taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs online marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace and as an indicator of the scale, growth, and health of our online marketplace. Our historical performance for GMV may not be indicative of future performance in GMV.

Number of Orders

We define Number of Orders as the total number of orders placed or reported through the 1stDibs online marketplace in a given month, minus cancellations within that month. Our historical performance for Number of Orders may not be indicative of future performance in Number of Orders.

Active Buyers

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. A buyer is identified by a unique email address; thus an Active Buyer could have more than one account if they were to use a separate unique email address to set up each account. We believe this metric reflects scale, engagement and brand awareness, and our ability to convert user activity on our online marketplace into transactions. Our historical performance for Active Buyers may not be indicative of future performance in new Active Buyers.

Adjusted EBITDA

We define Adjusted EBITDA as net loss excluding depreciation and amortization, stock-based compensation expense, other income, net, provision for income taxes, gain on sale of business, and strategic alternative expenses. Adjusted EBITDA is a key performance measure used by our management and board of directors to assess our operating performance and the operating leverage of our business. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. See “Non-GAAP Financial Measures” for more information and for a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.

Components of Results of Operations

Net Revenue

Our net revenue consists principally of seller marketplace services. Seller marketplace services primarily consist of marketplace transactions, subscriptions, and listing fees. Marketplace transaction fees are collected when sellers pay us commissions ranging from 5% to 50% of GMV and processing fees, which are approximately 3% of the buyer’s total payment, net of expected refunds. If a seller accepts a return or refund of an on-platform purchase, the related commission and processing fees are refunded. Subscriptions provide access to our online marketplace, allowing sellers, who are our customers, to execute successful purchase transactions with buyers. We offer our sellers various subscription pricing tiers which allows them to choose the plan that best fits their business, with choices of a higher monthly subscription fee and lower commission rates or lower monthly subscription fee and higher commission rates. Additionally, some sellers have no monthly subscription fees and higher commission rates, however, we no longer offer this option to new sellers. Listing fee revenue is collected when sellers pay us for promoting certain products on their behalf and at their discretion through our online marketplace. Advertisements consist of impression-based ads displayed on our online marketplace on the seller’s behalf.

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Cost of Revenue

Cost of revenue includes payment processor fees and hosting expenses. Cost of revenue also includes expenses associated with payroll, employee benefits, stock-based compensation, other headcount-related expenses associated with operations personnel supporting revenue-related operations and logistics, consulting costs, and amortization expense related to our capitalized internal-use software.

In certain transactions where our shipping services are elected by sellers, we facilitate shipping of items purchased from the seller to the buyer. The difference between the amount collected for shipping and the amount charged by the shipping carrier is included in cost of revenue in our consolidated statements of operations. We facilitate fulfillment and shipping, but do not take ownership of or manage inventory.

Gross Profit and Gross Margin

Gross profit is net revenue less cost of revenue, and gross margin is gross profit as a percentage of net revenue. Gross profit has been, and will continue to be, affected by various factors, including leveraging economies of scale, the costs associated with hosting our platform, the level of amortization of our internal-use software, the fluctuations in shipping costs including our ability to pass these costs on to buyers, and the extent to which we expand our operations. We expect that our gross margin will fluctuate from period to period depending on the interplay of these various factors.

Sales and Marketing

Sales and marketing expenses include payroll, employee benefits, stock-based compensation, other headcount-related expenses associated with sales and marketing personnel, advertising expense, consulting costs, and promotional discounts offered to new and existing buyers. Advertising expenses consist primarily of costs incurred promoting and marketing our services, such as costs associated with acquiring new users through performance-based marketing, social media programs, email, and events. Promotional discounts and incentives represent incentives solely to end buyers and, therefore, are not considered payments made to our customers. Buyers are not our customers because access to the 1stDibs online marketplace is free for buyers, and we have no performance obligations with respect to buyers.

Technology Development

Technology development expenses include payroll, employee benefits, stock-based compensation, and other headcount-related expenses associated with engineering and product development personnel and consulting costs related to technology development. We expense all technology development expenses as incurred, except for those expenses that meet the criteria for capitalization as internal-use software.

General and Administrative

General and administrative expenses include payroll, employee benefits, stock-based compensation, other headcount-related expenses associated with finance, legal, facility and human resources related personnel, lease expense, net of sublease income, business liability insurance, accounting, professional fees, and depreciation and amortization of property and equipment. We expense all general and administrative expenses as incurred.

Provision for Transaction Losses

Provision for transaction losses primarily consists of transaction loss expense associated with our buyer protection program, including damages to products caused by shipping and transit, items that were not received or not as represented by the seller, and reimbursements to buyers at our discretion if they are dissatisfied with their experience. The provision for transaction losses also includes bad debt expense associated with our accounts receivable balance.

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Results of Operations

The following table summarizes our results of operations for the periods indicated:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net revenue	$	22,235	$	20,921	$	44,297	$	43,099
Cost of revenue	6,290		6,327		12,366		13,634
Gross profit	15,945		14,594		31,931		29,465
Operating expenses:
Sales and marketing	9,265		9,791		18,434		19,596
Technology development	5,470		6,889		10,215		12,684
General and administrative	6,882		7,463		13,892		15,551
Provision for transaction losses	822		888		1,236		2,252
Total operating expenses	22,439		25,031		43,777		50,083
Loss from operations	(6,494)		(10,437)		(11,846)		(20,618)
Other income, net:
Interest income	1,646		1,645		3,338		3,176
Other, net	415		472		772		989
Total other income, net	2,061		2,117		4,110		4,165
Net loss before income taxes	(4,433)		(8,320)		(7,736)		(16,453)
Provision for income taxes	(4)		—		(4)		—
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)

The following table summarizes our results of operations as a percentage of net revenue for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net revenue	100	%	100	%	100	%	100	%
Cost of revenue	28		30		28		32
Gross profit	72		70		72		68
Operating expenses:
Sales and marketing	42		47		42		46
Technology development	24		33		23		29
General and administrative	31		36		31		36
Provision for transaction losses	4		4		3		5
Total operating expenses	101		120		99		116
Loss from operations	(29)		(50)		(27)		(48)
Other income, net:
Interest income	7		8		8		8
Other, net	2		2		2		2
Total other income, net	9		10		10		10
Net loss before income taxes	(20)		(40)		(17)		(38)
Provision for income taxes	—		—		—		—
Net loss	(20)	%	(40)	%	(17)	%	(38)	%

Comparison of the Three Months Ended June 30, 2024 and 2023

Net Revenue

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Net revenue	$	22,235	$	20,921	$	1,314	6	%

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Net revenue was $22.2 million for the three months ended June 30, 2024, as compared to $20.9 million for the three months ended June 30, 2023. The increase of $1.3 million, or 6%, was primarily driven by an increase to GMV and various strategic initiatives we actioned to improve our take rates, including commission re-tiering.

Our marketplace transaction fees represent the majority of our net revenue and accounted for 75% and 71% of our net revenue for the three months ended June 30, 2024 and 2023, respectively. Subscription fees accounted for 21% and 24% of our net revenue for the three months ended June 30, 2024 and 2023, respectively.

Cost of Revenue

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Cost of revenue	$	6,290	$	6,327	$	(37)	(1)	%

Cost of revenue was generally flat with $6.3 million for the three months ended June 30, 2024 and 2023. There was a $0.3 million decrease in salaries and benefits resulting from decreases in headcount, primarily related to our reduction in workforce in June 2023, which was partially offset by increases of $0.2 million in credit card processing fees and $0.1 million in consulting expenses.

Gross Profit and Gross Margin

Gross profit was $15.9 million and gross margin was 71.7% for the three months ended June 30, 2024, as compared to gross profit of $14.6 million and gross margin of 69.8% for the three months ended June 30, 2023. The increase in gross profit and gross margin for the three months ended June 30, 2024 was primarily driven by our cost savings initiatives in the second half of 2023 which contributed to a decrease in our cost of revenue, as well as our initiatives to improve our take rates and net revenue, as outlined above.

Operating Expenses

Sales and Marketing

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Sales and marketing	$	9,265	$	9,791	$	(526)	(5)	%

Sales and marketing expense was $9.3 million for the three months ended June 30, 2024, as compared to $9.8 million for the three months ended June 30, 2023. The decrease of $0.5 million, or 5%, was primarily driven by a $1.4 million decrease in salaries and benefits resulting from decreases in headcount, primarily related to our reduction in workforce in June 2023. These decreases were partially offset by a $1.0 million increase in performance-based marketing spend which contributed to an increase in GMV.

Technology Development

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Technology development	$	5,470	$	6,889	$	(1,419)	(21)	%

Technology development expense was $5.5 million for the three months ended June 30, 2024, as compared to $6.9 million for the three months ended June 30, 2023. The decrease of $1.4 million, or 21%, was primarily driven by a $1.5 million decrease in salaries and benefits resulting from decreases in headcount, primarily related to our reduction in workforce in June 2023.

General and Administrative

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
General and administrative	$	6,882	$	7,463	$	(581)	(8)	%

General and administrative expense was $6.9 million for the three months ended June 30, 2024, as compared to $7.5 million for the three months ended June 30, 2023. The decrease of $0.6 million, or 8%, was primarily driven by a $0.9 million decrease in lease expense, net, primarily due to sublease income related to our sublease for our old corporate headquarters signed in August 2023 and a $0.4 million decrease related to lower rates negotiated with vendors, including lower liability insurance expense. These decreases were partially offset by a $0.5 million increase in salaries and benefits and a $0.4

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million increase in stock-based compensation expense, primarily due to our annual compensation increases and equity grants which occur annually in March.

Provision for Transaction Losses

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Provision for transaction losses	$	822	$	888	$	(66)	(7)	%

Provision for transaction losses was $0.8 million for the three months ended June 30, 2024, as compared to $0.9 million for the three months ended June 30, 2023. The decrease of $0.1 million, or 7%, was primarily driven by a decrease in damage claims as a result of new policies implemented by us and in partnership with our carriers.

Other Income, Net

	Three Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Total other income, net	$	2,061	$	2,117	$	(56)	(3)	%

Other income, net was $2.1 million for each of the three months ended June 30, 2024 and 2023 and was primarily due to interest income on our cash, cash equivalents, and short-term investments.

Comparison of the Six Months Ended June 30, 2024 and 2023

Net Revenue

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Net revenue	$	44,297	$	43,099	$	1,198	3	%

Net revenue was $44.3 million for the six months ended June 30, 2024, as compared to $43.1 million for the six months ended June 30, 2023. The increase of $1.2 million, or 3%, was primarily driven by various strategic initiatives we actioned to improve our take rates, including commission re-tiering.

Our marketplace transaction fees represent the majority of our net revenue and accounted for 75% and 71% of our net revenue for the six months ended June 30, 2024 and 2023, respectively. Subscription fees accounted for 22% and 24% of our net revenue for the six months ended June 30, 2024 and 2023, respectively.

Cost of Revenue

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Cost of revenue	$	12,366	$	13,634	$	(1,268)	(9)	%

Cost of revenue was $12.4 million for the six months ended June 30, 2024, as compared to $13.6 million for the six months ended June 30, 2023. The decrease of $1.3 million, or 9%, was primarily driven by a $0.7 million decrease in salaries and benefits resulting from decreases in headcount from the prior period, primarily related to our reduction in workforce in June 2023, and a $0.4 million decrease in depreciation expense.

Gross Profit and Gross Margin

Gross profit was $31.9 million and gross margin was 72.1% for the six months ended June 30, 2024, as compared to gross profit of $29.5 million and gross margin of 68.4% for the six months ended June 30, 2023. The increase in gross profit and gross margin for the six months ended June 30, 2024 was primarily driven by our cost savings initiatives in the second half of 2023 which contributed to a decrease in our cost of revenue, as well as our initiatives to improve our take rates and net revenue, as outlined above.

Operating Expenses

Sales and Marketing

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Sales and marketing	$	18,434	$	19,596	$	(1,162)	(6)	%

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Sales and marketing expense was $18.4 million for the six months ended June 30, 2024, as compared to $19.6 million for the six months ended June 30, 2023. The decrease of $1.2 million, or 6%, was primarily driven by a $2.1 million decrease in salaries and benefits resulting from decreases in headcount, primarily related to our reduction in workforce in June 2023. These decreases were partially offset by a $1.2 million increase in performance-based marketing spend which contributed to an increase in GMV.

Technology Development

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Technology development	$	10,215	$	12,684	$	(2,469)	(19)	%

Technology development expense was $10.2 million for the six months ended June 30, 2024, as compared to $12.7 million for the six months ended June 30, 2023. The decrease of $2.5 million, or 19%, was primarily driven by a $2.3 million decrease in salaries and benefits resulting from decreases in headcount, primarily related to our reduction in workforce in June 2023.

General and Administrative

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
General and administrative	$	13,892	$	15,551	$	(1,659)	(11)	%

General and administrative expense was $13.9 million for the six months ended June 30, 2024, as compared to $15.6 million for the six months ended June 30, 2023. The decrease of $1.7 million, or 11%, was primarily driven by a $1.4 million decrease in lease expense, net, primarily due to sublease income related to our sublease for our old corporate headquarters signed in August 2023, a $1.0 million decrease related to lower rates negotiated with vendors, including lower liability insurance expense, and a $0.9 million decrease in professional fees due to expenses incurred in the six months ended June 30, 2023 related to strategic alternative expenses. These decreases were partially offset by a $0.8 million increase in stock-based compensation expense and a $0.8 million increase in salaries and benefits, primarily due to our annual compensation increases and equity grants which occur annually in March.

Provision for Transaction Losses

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Provision for transaction losses	$	1,236	$	2,252	$	(1,016)	(45)	%

Provision for transaction losses was $1.2 million for the six months ended June 30, 2024, as compared to $2.3 million for the six months ended June 30, 2023. The decrease of $1.0 million, or 45%, was primarily driven by a decrease in damage claims as a result of new policies implemented by us and in partnership with our carriers.

Other Income, Net

	Six Months Ended June 30,
(in thousands)	2024		2023		$ Change		% Change
Total other income, net	$	4,110	$	4,165	$	(55)	(1)	%

Other income, net was $4.1 million for the six months ended June 30, 2024, as compared to $4.2 million for the six months ended June 30, 2023 and was due primarily to interest income on our cash, cash equivalents, and short-term investments.

Non-GAAP Financial Measures

We have included Adjusted EBITDA, which is a non-GAAP financial measure, because it is a key measure used by our management team to help us to assess our operating performance and the operating leverage in our business. We also use this measure to analyze our financial results, establish budgets and operational goals for managing our business, and make strategic decisions. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. We also believe that the presentation of this non-GAAP financial measure provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our operating performance.

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The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. The non-GAAP financial measures presented should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP. Further, these non-GAAP financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these non-GAAP financial measures should be considered as supplemental in nature, and are not intended, and should not be construed, as a substitute for the related financial information calculated in accordance with GAAP. These limitations of Adjusted EBITDA include the following:

•The exclusion of certain recurring, non-cash charges, such as depreciation and amortization of property and equipment. While these are non-cash charges, we may need to replace the assets being depreciated in the future and Adjusted EBITDA does not reflect cash requirements for these replacements or new capital expenditure requirements;

•The exclusion of stock-based compensation expense, which has been a significant recurring expense and will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be an important component of our compensation strategy;

•The exclusion of other income, net, which includes interest income related to our cash, cash equivalents and short-term investments and realized and unrealized gains and losses on foreign currency exchange; and

•The exclusion of strategic alternative expenses in connection with capital return strategies, buy- and sell-side mergers, acquisitions and partnerships which include integration costs, sale of a business or subsidiary, business optimization costs related to revisions of operational objectives and priorities which include restructuring charges, in all cases outside the ordinary course.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.

We define Adjusted EBITDA as our net loss, excluding: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; (4) provision for income taxes; and (5) strategic alternative expenses. The following table provides a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)
Depreciation and amortization	470		427		932		1,366
Stock-based compensation expense	4,016		3,252		7,106		6,358
Other income, net	(2,061)		(2,117)		(4,110)		(4,165)
Provision for income taxes	4		—		4		—
Strategic alternative expenses	419		2,179		425		3,061
Adjusted EBITDA	$	(1,589)	$	(4,579)	$	(3,383)	$	(9,833)

Liquidity and Capital Resources

As of June 30, 2024, we had cash, cash equivalents and short-term investments of $110.6 million and an accumulated deficit of $321.5 million. Net cash used in operating activities was $5.7 million during the six months ended June 30, 2024. We expect operating losses and negative cash flows from operations to continue in the foreseeable future as we continue to strategically invest in growth activities. Our principal use of cash is to fund our operations including platform development to support our strategic initiatives.

Based on our current plans, we believe our existing cash, cash equivalents and short-term investments will be sufficient to fund our operations and capital expenditure requirements through at least the next 12 months. We expect to continue to incur substantial expenditures in the near term to support our ongoing activities. While management believes that our current cash, cash equivalents and short-term investments are sufficient to fund our operating expenses and capital expenditure requirements for at least the next 12 months, we may need to borrow funds or raise additional equity to achieve our longer-term business objectives.

Our future capital requirements will depend on many factors, including:

•the emergence of competing online marketplaces and other adverse market developments;

•the timing and extent of our sales and marketing and technology development expenditures; and

•any investments, acquisitions or other similar strategic endeavors we may choose to pursue in the future.

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A change in the outcome of any of these or other variables could significantly impact our operating plans, and we may need additional funds to meet operational needs and capital requirements associated with such plans. In addition, any future borrowings may result in additional restrictions on our business and any issuance of additional equity would result in dilution to investors. If we are unable to raise additional capital when we need it, it could harm our business, results of operations, and financial condition.

Stock Repurchase Program

In August 2023, the Board of Directors authorized a Stock Repurchase Program to repurchase up to an aggregate of $20.0 million of our common stock. In June 2024, the Board authorized an increase to our Stock Repurchase Program to an aggregate authorized repurchase amount of $25.5 million. During the six months ended June 30, 2024, 4.1 million shares of our common stock were purchased for a total cost of $21.9 million. On June 10, 2024, we announced the completion of our Stock Repurchase Program.

Cash Flows

The following table summarizes our cash flows for the periods indicated:

	Six Months Ended June 30,
(in thousands)	2024		2023
Net cash (used in) operating activities	$	(5,705)	$	(9,268)
Net cash provided by (used in) investing activities	15,283		(100,292)
Net cash (used in) provided by financing activities	(23,064)		35
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(62)		227
Net decrease in cash, cash equivalents, and restricted cash	$	(13,548)	$	(109,298)

Cash Flows from Operating Activities

Net cash used in operating activities was $5.7 million for the six months ended June 30, 2024, and was driven primarily by a $3.6 million change in accounts payable and accrued expenses due to timing of payments and invoices, including our annual bonuses which were paid in March 2024 and a $1.4 million change in operating lease liabilities due to the continued lease payments on our previous and current NYC headquarters, partially offset by our sublease income.

Net cash used in operating activities was $9.3 million for the six months ended June 30, 2023, and was driven primarily by net revenue decreasing at a faster pace than operating expenses. Our changes in operating assets and liabilities were impacted by a negative change in operating lease liabilities of $1.4 million due to the continued lease payments on our previous NYC headquarters, partially offset by a positive change in accounts payable and accrued expenses of $1.3 million due to the timing of invoices and payments.

Cash Flows from Investing Activities

Net cash provided by investing activities was $15.3 million for the six months ended June 30, 2024, and was driven primarily by $67.8 million maturities and sales of short-term investments, partially offset by $51.5 million purchases of short-term investments.

Net cash used in investing activities was $100.3 million for the six months ended June 30, 2023, and was driven primarily by $110.4 million purchases of short-term investments, partially offset by $11.0 million maturities of short-term investments.

Cash Flows from Financing Activities

Net cash used in financing activities was $23.1 million for the six months ended June 30, 2024, and was driven primarily by $21.9 million in purchases of our common stock as part of our Stock Repurchase Program and $2.0 million of payments for taxes related to net share settlements of stock-based compensation awards, partially offset by $0.8 million in proceeds from the exercise of stock options.

Net cash provided by financing activities for the six months ended June 30, 2023, was less than $0.1 million and related to proceeds from the exercise of stock options.

Contractual Obligations

As of June 30, 2024, there were no material changes in commitments under contractual obligations compared to the contractual obligations disclosed in our Form 10-K.

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Recent Accounting Pronouncements

See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our condensed consolidated financial statements for a description of recently issued accounting pronouncements that may potentially impact our financial position, results of operations, or cash flows.

Emerging Growth Company

We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that (i) we are no longer an emerging growth company or (ii) we affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected.

There have been no significant changes to our critical accounting policies and estimates included in our Form 10-K.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We have operations both within the United States and internationally, and we are exposed to market risks in the ordinary course of our business, including the effects of interest rate changes and foreign currency fluctuations. Information relating to quantitative and qualitative disclosures about these market risks are described below. At times, our cash balances with individual banking institutions are in excess of federally insured limits. We have not experienced any credit losses related to our cash, cash equivalents, and short-term investments balances.

Interest Rate Sensitivity

Interest rate risk relates to the loss we could incur in our cash portfolios due to a change in interest rates. As of June 30, 2024, we had cash, cash equivalents and short-term investments of $110.6 million. Our cash and cash equivalents consist primarily of demand and money market accounts, as well as available-for-sale debt securities with an original maturity of 90 days or less. Our short-term investments consist primarily of U.S. Government agency and Treasury securities, as well as commercial paper and corporate notes which have an original maturity greater than 90 days and less than one year. Due to the nature of our cash, cash equivalents and short-term investments, we would expect a hypothetical 100 basis point increase or decrease in interest rates to result in an approximate increase or decrease of $0.7 million in our cash, cash equivalents and short-term investments. While these are our best estimates of the impact of the specified interest rate scenario, actual results could differ from those projected. The sensitivity analysis presented assumes interest rate changes are instantaneous, parallel shifts in the yield curve. In reality, interest rate changes of this magnitude are rarely instantaneous or parallel.

Our principal use of cash, cash equivalents and short-term investments is to fund our operations including platform development to support our strategic initiatives. The remainder of cash, cash equivalents and short-term investments are held for working capital purposes. We do not enter into investments for trading or speculative purposes.

Foreign Currency Risk

Our net revenue is primarily denominated in U.S. dollars, Euros, and British pounds, depending on the currency selection of the seller. Our cost of revenue and operating expenses are primarily denominated in U.S. dollars. As our online marketplace continues to grow globally, our results of operations and cash flows may be subject to fluctuations due to the change in foreign exchange rates. To date, fluctuations due to changes in the Euro and British pound have not been significant, but we may experience material foreign exchange gains and losses in our statement of operations in the future. As of June 30, 2024, we would expect an adverse 10% change in current exchange rates to result in no more than a $1.6 million decrease in net revenue for the six months ended June 30, 2024.

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Credit Risk

We are exposed to credit risk on accounts receivable balances. This risk is mitigated by requiring upfront payment for many of our services and due to our diverse customer base, dispersed over various geographic regions and industrial sectors. For the three and six months ended June 30, 2024 and 2023, no single customer accounted for more than 10% of our net revenue. We maintain provisions for potential credit losses and such losses to date have been within our expectations. We evaluate the solvency of our customers on an ongoing basis to determine if additional allowances for doubtful accounts need to be recorded.

Inflation Risk

Our results of operations and financial condition are presented based on historical cost. While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe certain metrics, including our GMV and net revenue, have been negatively impacted, both directly and indirectly, by macroeconomic factors, including inflation and as a result significant capital market and housing market volatility. Additionally, if our costs were to become subject to inflationary pressures, we might not be able to fully offset such higher costs through net revenue and GMV increases. Our inability or failure to do so could harm our business, financial condition, and results of operations. We cannot assure you our business will not be affected in the future by inflation.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2024. “Disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2024 at the reasonable assurance level.

Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving the desired control objectives. Our management recognizes that any control system, no matter how well designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met. Similarly, an evaluation of controls cannot provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified during the three months ended June 30, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and our Chief Financial Officer, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by the collusion of two or more people or by management override of controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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Part II - Other Information

Item 1. Legal Proceedings

From time to time, we are involved in legal proceedings and subject to claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we believe that the resolution of current matters will not have a material adverse effect on our business, financial condition, or results of operations. Even if any particular litigation or claim is not resolved in a manner that is adverse to our interests, such litigation can have a negative impact on us because of defense and settlement costs, diversion of management resources from our business, and other factors.

Item 1A. Risk Factors

We operate in a rapidly changing environment that involves a number of risks that could materially and adversely affect our business, financial condition, prospects, operating results or cash flows. For a detailed discussion of certain risks that affect our business, refer to the section entitled “Risk Factors” in our 2023 Annual Report on Form 10-K. There have been no material changes to the risk factors disclosed in our 2023 Form 10-K.

The risks described in our 2023 Form 10-K are not the only risks we face. We describe in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I of this Quarterly Report on Form 10-Q certain known trends and uncertainties that affect our business. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business, operating results and financial condition.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

(a) Recent Sales of Unregistered Equity Securities

There were no unregistered sales of equity securities during the period covered by this report.

(b) Use of Proceeds

None.

(c) Issuer Purchases of Equity Securities

In August 2023, the Company’s Board of Directors authorized the Company to repurchase up to an aggregate of $20.0 million of its common stock (“Stock Repurchase Program”). In June 2024, the Board authorized an increase to our Stock Repurchase Program to an aggregate authorized repurchase amount of $25.5 million. During the three months ended June 30, 2024, 3,550,267 shares of our common stock were purchased for a total cost of $19.0 million. On June 10, 2024, we announced the completion of our Stock Repurchase Program.

The following table presents details of our monthly share repurchases for the three months ended June 30, 2024:

Period	Total Number of Shares Purchased	Average Price Paid per Share (a)		Total number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Approximate Dollar Value of Shares that May Yet be Purchased under the Plans or Programs (in thousands) (c)
April 1, 2024 - April 30, 2024	365,607	$	5.55	365,607	$	11,560
May 1, 2024 - May 30, 2024	199,505	$	5.81	199,505	$	10,401
June 1, 2024 - June 30 2024	2,985,155	$	5.23	2,985,155	$	—
Total	3,550,267			3,550,267

(a) Average price per share includes broker commissions.

(b) On August 4, 2023, the Board of Directors authorized a Stock Repurchase Program to repurchase up to an aggregate of $20.0 million of our common stock. On June 3, 2024 the Board of Directors authorized an increase of $5.5 million to the Stock Repurchase Program.

(c) On June 10, 2024 the Company announced the completion of the Stock Repurchase Program.

The Company’s officers and directors are required to comply with the Company’s securities trading policy at all times, including during a repurchase program. The securities trading policy, among other things, prohibits trading in the Company’s securities when in possession of material non-public information and restricts the ability of certain officers or director from transacting in the Company’s securities during specific blackout periods, subject to certain limited exceptions, including transactions pursuant to a Rule 10b5-1 trading plan that complies with the conditions of Securities Exchange Act Rule 10b5-1.

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Item 5. Other Information

(c) Adoption or Termination of Insider Trading Arrangements

On May 13, 2024, Thomas Etergino, our Chief Financial Officer, entered into a 10b5-1 trading plan during an open insider trading window, intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions for trades over a period of time from October 8, 2024 until July 31, 2025 or such earlier time as when 22,000 shares of the Company’s common stock are sold.

On June 13, 2024, Matthew Rubinger, our Chief Commercial Officer, entered into a 10b5-1 trading plan during an open insider trading window, intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions for trades over a period of time from December 18, 2024 until December 17, 2025 or such earlier time as when 84,784 shares of the Company’s common stock are sold.

No other director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408 of Regulation S-K, during the quarter ended June 30, 2024.

Item 6. Exhibit Index

Exhibit No.	Description
3.1	Restated Certificate of Incorporation of 1stdibs.com, Inc. (incorporated by reference from Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K filed June 14, 2021).
3.2	Amended and Restated Bylaws (incorporated by reference from Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K filed March 1, 2023).
4.1	Specimen Common Stock Certificate of the Registrant (incorporated by reference from Exhibit 4.1 to the Registrant’s registration statement on Form S-1 (File No. 333-256188), as declared effective by the SEC on June 9, 2021 (the “Form S-1”)).
4.2	Description of Capital Stock (incorporated by reference from Exhibit 4.2 to the registrant’s Annual Report on Form 10-K filed March 3, 2022).
10.1	Stock Repurchase Agreement, dated as of June 3, 2024, by and between 1stdibs.com, Inc., Insight Venture Partners IX, L.P., Insight Venture Partners (Cayman) IX, L.P., Insight Venture Partners (Delaware) IX, L.P., and Insight Venture Partners IX (Co-Investors), L.P. incorporated by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed June 6, 2024).
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*#	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*#	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document: the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set

_______________

*

Filed herewith.

#

In accordance with Item 601(b)(32)(ii) of Regulation S K and SEC Release No. 34 47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10 Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933 except to the extent that the Company specifically incorporates it by reference.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	1STDIBS.COM, INC.
	/s/ Thomas Etergino
Date: August 7, 2024	Thomas Etergino Chief Financial Officer (Principal Financial Officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Rosenblatt, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of 1stdibs.com, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ David Rosenblatt
Date: August 7, 2024	David S. Rosenblatt Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas Etergino, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of 1stdibs.com, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Thomas Etergino
Date: August 7, 2024	Thomas Etergino Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO,

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of 1stdibs.com, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ David Rosenblatt
Date: August 7, 2024	David S. Rosenblatt Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO,

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of 1stdibs.com, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Thomas Etergino
Date: August 7, 2024	Thomas Etergino Chief Financial Officer

XML

COVER - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	333-256188
Entity Registrant Name	1stdibs.com, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3389618
Entity Address, Address Line One	300 Park Avenue South, 10th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10010
City Area Code	212
Local Phone Number	627-3929
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	DIBS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		39,693,138
Entity Central Index Key	0001600641
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 23,807	$ 37,395
Short-term investments	86,825	101,926
Accounts receivable, net of allowance for doubtful accounts of $154 and $188 at June 30, 2024 and December 31, 2023, respectively	681	643
Prepaid expenses	3,766	3,032
Receivables from payment processors	3,303	2,670
Other current assets	2,661	2,214
Total current assets	121,043	147,880
Restricted cash, non-current	3,620	3,580
Property and equipment, net	3,987	3,384
Operating lease right-of-use assets	21,481	19,655
Goodwill	4,242	4,116
Other assets	3,209	2,200
Total assets	157,582	180,815
Current liabilities:
Accounts payable	2,255	3,580
Payables due to sellers	8,134	6,521
Accrued expenses	9,439	10,883
Operating lease liabilities, current	3,932	3,107
Other current liabilities	3,332	3,618
Total current liabilities	27,092	27,709
Operating lease liabilities, non-current	20,079	18,812
Other liabilities	25	6
Total liabilities	47,196	46,527
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 10,000 shares authorized as of June 30, 2024 and December 31, 2023; zero shares issued and outstanding as of June 30, 2024 and December 31, 2023	0	0
Common stock, $0.01 par value; 400,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 41,619,773 and 40,738,619 shares issued as of June 30, 2024 and December 31, 2023, respectively; and 36,693,138 and 39,915,136 outstanding as of June 30, 2024 and December 31, 2023, respectively	416	407
Treasury stock, at cost; 4,926,635 and 823,483 shares as of June 30, 2024 and December 31, 2023, respectively	(25,373)	(3,496)
Additional paid-in capital	457,274	451,282
Accumulated deficit	(321,459)	(313,719)
Accumulated other comprehensive loss	(472)	(186)
Total stockholders’ equity	110,386	134,288
Total liabilities and stockholders’ equity	$ 157,582	$ 180,815

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 154	$ 188
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	400,000,000	400,000,000
Common stock, issued (in shares)	41,619,773	40,738,619
Common stock, outstanding (in shares)	36,693,138	39,915,136
Treasury stock, common (in shares)	4,926,635	823,483

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net revenue	$ 22,235	$ 20,921	$ 44,297	$ 43,099
Cost of revenue	6,290	6,327	12,366	13,634
Gross profit	15,945	14,594	31,931	29,465
Operating expenses:
Sales and marketing	9,265	9,791	18,434	19,596
Technology development	5,470	6,889	10,215	12,684
General and administrative	6,882	7,463	13,892	15,551
Provision for transaction losses	822	888	1,236	2,252
Total operating expenses	22,439	25,031	43,777	50,083
Loss from operations	(6,494)	(10,437)	(11,846)	(20,618)
Other income, net:
Interest income	1,646	1,645	3,338	3,176
Other, net	415	472	772	989
Total other income, net	2,061	2,117	4,110	4,165
Net loss before income taxes	(4,433)	(8,320)	(7,736)	(16,453)
Provision for income taxes	(4)	0	(4)	0
Net loss	$ (4,437)	$ (8,320)	$ (7,740)	$ (16,453)
Net loss per share—basic (in usd per share)	$ (0.12)	$ (0.21)	$ (0.20)	$ (0.42)
Net loss per share—diluted (in usd per share)	$ (0.12)	$ (0.21)	$ (0.20)	$ (0.42)
Weighted average common shares outstanding—basic (in shares)	38,517,785	39,642,725	39,131,456	39,487,496
Weighted average common shares outstanding—diluted (in shares)	38,517,785	39,642,725	39,131,456	39,487,496

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,437)	$ (8,320)	$ (7,740)	$ (16,453)
Other comprehensive loss:
Foreign currency translation adjustment, net of tax of $0 for each of the three and six months ended June 30, 2024 and 2023	(7)	24	(23)	43
Unrealized losses on short-term investments, net of tax of $0 for each of the three and six months ended June 30, 2024 and 2023	(71)	(85)	(263)	(120)
Comprehensive loss	$ (4,515)	$ (8,381)	$ (8,026)	$ (16,530)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 0	$ 0	$ 0	$ 0
Unrealized losses on short-term investments, tax	$ 0	$ 0	$ 0	$ 0

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid - In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022		39,260,193
Beginning balance at Dec. 31, 2022	$ 148,022	$ 393	$ 439,005	$ (291,020)	$ (356)
Beginning balance at Dec. 31, 2022						$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)		8,978
Issuance of common stock for exercise of stock options	35	$ 0	35
Vested restricted stock units converted to common stock (in shares)		767,847
Vested restricted stock units converted to common shares	0	$ 7	(7)
Stock-based compensation	6,447		6,447
Other comprehensive loss	(77)				(77)
Net loss	(16,453)			(16,453)
Ending balance (in shares) at Jun. 30, 2023		40,037,018
Ending balance at Jun. 30, 2023	137,974	$ 400	445,480	(307,473)	(433)
Ending balance at Jun. 30, 2023						0
Beginning balance (in shares) at Mar. 31, 2023		39,509,346
Beginning balance at Mar. 31, 2023	143,040	$ 395	442,170	(299,153)	(372)
Beginning balance at Mar. 31, 2023						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)		1,000
Issuance of common stock for exercise of stock options	4	$ 0	4
Vested restricted stock units converted to common stock (in shares)		526,672
Vested restricted stock units converted to common shares	0	$ 5	(5)
Stock-based compensation	3,311		3,311
Other comprehensive loss	(61)				(61)
Net loss	(8,320)			(8,320)
Ending balance (in shares) at Jun. 30, 2023		40,037,018
Ending balance at Jun. 30, 2023	$ 137,974	$ 400	445,480	(307,473)	(433)
Ending balance at Jun. 30, 2023						0
Beginning balance (in shares) at Dec. 31, 2023	39,915,136	39,915,136
Beginning balance at Dec. 31, 2023	$ 134,288	$ 407	451,282	(313,719)	(186)
Beginning balance at Dec. 31, 2023	$ (3,496)					(3,496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)	193,862	193,862
Issuance of common stock for exercise of stock options	$ 786	$ 2	784
Vested restricted stock units converted to common stock (in shares)		687,292
Vested restricted stock units converted to common shares	(1,973)	$ 7	(1,980)
Stock-based compensation	7,188		7,188
Repurchase of common stock (shares)		(4,103,152)
Repurchase of common stock	(21,877)					(21,877)
Other comprehensive loss	(286)				(286)
Net loss	$ (7,740)			(7,740)
Ending balance (in shares) at Jun. 30, 2024	36,693,138	36,693,138
Ending balance at Jun. 30, 2024	$ 110,386	$ 416	457,274	(321,459)	(472)
Ending balance at Jun. 30, 2024	(25,373)					(25,373)
Beginning balance (in shares) at Mar. 31, 2024		39,732,251
Beginning balance at Mar. 31, 2024	131,016	$ 411	454,432	(317,022)	(394)
Beginning balance at Mar. 31, 2024						(6,411)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)		21,588
Issuance of common stock for exercise of stock options	83	$ 0	83
Vested restricted stock units converted to common stock (in shares)		489,566
Vested restricted stock units converted to common shares	(1,302)	$ 5	(1,307)
Stock-based compensation	4,066		4,066
Repurchase of common stock (shares)		(3,550,267)
Repurchase of common stock	(18,962)					(18,962)
Other comprehensive loss	(78)				(78)
Net loss	$ (4,437)			(4,437)
Ending balance (in shares) at Jun. 30, 2024	36,693,138	36,693,138
Ending balance at Jun. 30, 2024	$ 110,386	$ 416	$ 457,274	$ (321,459)	$ (472)
Ending balance at Jun. 30, 2024	$ (25,373)					$ (25,373)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (7,740)	$ (16,453)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	932	1,366
Stock-based compensation expense	7,106	6,358
Provision for transaction losses, returns and refunds	625	549
Amortization of costs to obtain revenue contracts	160	162
Amortization of operating lease right-of-use assets	1,661	1,268
Accretion of discounts and amortization of premiums on short-term investments, net	(1,499)	(1,241)
Other, net	2	(219)
Changes in operating assets and liabilities:
Accounts receivable	(193)	46
Prepaid expenses and other current assets	(1,271)	(449)
Receivables from payment processors	(633)	155
Other assets	(1,181)	(172)
Accounts payable and accrued expenses	(3,601)	1,297
Payables due to sellers	1,611	(838)
Operating lease liabilities	(1,394)	(1,366)
Other current liabilities and other liabilities	(290)	269
Net cash used in operating activities	(5,705)	(9,268)
Cash flows from investing activities:
Maturities of short-term investments	49,177	11,000
Sales of short-term investments	18,667	0
Purchases of short-term investments	(51,507)	(110,411)
Development of internal-use software	(797)	(856)
Purchases of property and equipment	(554)	(25)
Other, net	297	0
Net cash provided by (used in) investing activities	15,283	(100,292)
Cash flows from financing activities:
Proceeds from exercise of stock options	786	35
Payments for repurchase of common stock	(21,877)	0
Payments for taxes related to net share settlement of stock-based compensation awards	(1,973)	0
Net cash (used in) provided by financing activities	(23,064)	35
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(62)	227
Net decrease in cash, cash equivalents, and restricted cash	(13,548)	(109,298)
Cash, cash equivalents, and restricted cash at beginning of the period	40,975	158,043
Cash, cash equivalents, and restricted cash at end of the period	27,427	48,745
Supplemental disclosure of non-cash activities:
Recording of right of use asset	3,483	0
Recording of lease liability	$ (3,483)	$ 0

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

Description of Business

1stdibs.com, Inc. (“1stDibs” or the “Company”) is one of the world’s leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage & antique furniture, contemporary furniture, home décor, jewelry, watches, art, and fashion. The Company’s thoroughly vetted seller base, in-depth marketing content, and custom-built technology platform create trust in the Company’s brand and facilitate high-consideration purchases of luxury design products online. By disrupting the way these items are bought and sold, 1stDibs is both expanding access to, and growing the market for, luxury design products.

The Company was incorporated in the state of Delaware on March 10, 2000 and is headquartered in New York, NY.

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.

The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity, and cash flows for the interim periods. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2024.

There have been no material changes to the Company's significant accounting policies as described in the Form 10-K.

Restructuring Charges

In June 2023, the Company announced a workforce reduction designed to reduce operating costs and realign investment priorities involving the reduction of approximately 20% of the Company’s global workforce. As a result of the reduction, the Company incurred approximately $2.0 million in non-recurring restructuring charges in the three months ended June 30, 2023, consisting primarily of employee severance and benefits costs. As of June 30, 2024, all $2.0 million has been paid.

During the three months ended June 30, 2024, the Company incurred $0.4 million of additional employee severance and benefits costs which is anticipated to be paid over the next 12 months. The following table displays a rollforward of the charges and payments to the accrued balance as of June 30, 2024:

(in thousands)	Restructuring Charges
Balance, December 31, 2023	$	396
Restructuring charges	372
Cash payments	(396)
Balance, June 30, 2024	$	372

The expense is included within the respective financial statement line items on the condensed consolidated statements of operations as shown in the table below:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	—	$	135	$	—	$	135
Sales and marketing	—		789		—		789
Technology development	—		1,044		—		1,044
General and administrative	372		36		372		36
Total	$	372	$	2,004	$	372	$	2,004

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, impairment assessment of goodwill, capitalization of internal-use software and determination of useful lives, income taxes, and the valuation of stock-based compensation and leases. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.

Cash, Cash Equivalents, and Restricted Cash

The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented:

(in thousands)	June 30, 2024		June 30, 2023
Cash and cash equivalents	$	23,807	$	45,410
Restricted cash, non-current	3,620		3,335
Total cash, cash equivalents, and restricted cash	$	27,427	$	48,745

The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. As of June 30, 2024, the Company’s restricted cash relates to $3.6 million in Letters of Credit for its office leases in New York, New York. During the three and six months ended June 30, 2024, the Company purchased $8.9 million and $25.6 million of available-for-sale securities classified as cash equivalents, respectively. During the three and six months ended June 30, 2023, the Company purchased $19.9 million and $31.8 million of available-for-sale securities classified as cash equivalents, respectively. The carrying value of the restricted cash approximates fair value.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard will require all public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items on an annual and interim basis. The guidance requires a public entity to disclose the significant expense categories and amounts that are regularly provided to the chief operating decision-maker. This standard is effective for the Company’s annual report ending December 31, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance and while it only has one reportable segment, it does expect to enhance its current disclosures in the notes to the financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures. The standard will require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new standard is effective for the Company’s annual report ending December 31, 2025. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value require the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques.

Short-term investments and certain cash equivalents consist of investments in debt securities that are available-for-sale. The table below segregates all assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date:

	June 30, 2024
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	1,863	$	—	$	—	$	1,863
Commercial paper	—		1,979		—		1,979
U.S. Treasury securities	—		2,196		—		2,196
Total cash equivalents	$	1,863	$	4,175	$	—	$	6,038
Short-term investments:
Commercial paper	$	—	$	6,151	$	—	$	6,151
Corporate notes	—		16,542		—		16,542
U.S. Treasury securities	—		10,705		—		10,705
U.S. Government agency securities	—		53,427		—		53,427
Total short-term investments	$	—	$	86,825	$	—	$	86,825

	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	5,797	$	—	$	—	$	5,797
U.S. Treasury securities	—		4,991		—		4,991
Total cash equivalents	$	5,797	$	4,991	$	—	$	10,788
Short-term investments:
Commercial paper	$	—	$	18,112	—		18,112
Corporate notes	—		7,641		—		7,641
U.S. Treasury securities	—		11,971		—		11,971
U.S. Government agency securities	—		64,202		—		64,202
Total short-term investments	$	—	$	101,926	$	—	$	101,926

There were no transfers between Level 1, Level 2, or Level 3 during the three and six months ended June 30, 2024 and 2023.

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Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following table summarizes the Company’s net revenue by type of service for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Seller marketplace services	$	21,962	$	20,761	$	43,800	$	42,772
Other services	273		160		497		327
Total net revenue	$	22,235	$	20,921	$	44,297	$	43,099

The Company generates net revenue from seller marketplace services and other services. Seller marketplace services primarily consist of marketplace transactions, subscriptions, and listing fees. Other services primarily consist of advertising revenues generated from displaying ads on the Company’s online marketplace.

As of June 30, 2024, the Company recorded $0.4 million of costs to obtain revenue contracts, of which $0.2 million was included in other current assets, and $0.2 million was included in other assets. As of December 31, 2023, the Company recorded $0.5 million of costs to obtain revenue contracts, of which $0.3 million was included in other current assets, and $0.2 million was included in other assets. Amortization of costs to obtain revenue contracts totaled $0.1 million and $0.2 million for the three and six months ended June 30, 2024 and 2023, respectively. The Company periodically reviews the costs to obtain revenue contracts to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these costs to obtain revenue contracts.

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Short-Term Investments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Short-Term Investments

Short-Term Investments

The following table summarizes the estimated value of the Company’s short-term investments as of the periods presented:

	June 30, 2024
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	6,156	$	—	$	(5)	$	6,151
Corporate notes	16,595		1		(54)		16,542
U.S. Treasury securities	10,733		—		(28)		10,705
U.S. Government agency securities	53,507		1		(81)		53,427
Total short-term investments	$	86,991	$	2	$	(168)	$	86,825

	December 31, 2023
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	18,101	$	14	$	(3)	$	18,112
Corporate notes	7,621		20		—		7,641
U.S. Treasury securities	11,975		2		(6)		11,971
U.S. Government agency securities	64,134		89		(21)		64,202
Total short-term investments	$	101,831	$	125	$	(30)	$	101,926

The Company recognized less than $0.1 million of realized losses related to sales of $18.7 million available-for-sale debt securities during the three and six months ended June 30, 2024. The Company evaluates securities for expected credit losses on a quarterly basis with consideration given to the financial condition and near-term prospects of the issuer, whether the Company intends to sell the securities, and whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis. The Company did not recognize any credit losses related to available-for-sale debt securities during the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell these before recovery. There were no securities in a continuous unrealized loss position for 12 months or longer. As of June 30, 2024, the fair value of short-term investments by remaining contractual maturity consisted of the following:

(in thousands)	Fair Value
Remaining maturity date one year or less	$	66,352
Remaining maturity date greater than one year	20,473
Total short-term investments	$	86,825

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Property and Equipment, net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

As of June 30, 2024 and December 31, 2023, property and equipment, net consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Internal-use software	$	20,130	$	19,541
Leasehold improvements	4,029		3,605
Furniture and fixtures	68		1,131
Computer equipment and software	550		919
Software in progress	853		569
Total property and equipment, gross	25,630		25,765
Less: Accumulated depreciation and amortization	(21,643)		(22,381)
Total property and equipment, net	$	3,987	$	3,384

As of June 30, 2024 and December 31, 2023, the net book value of internal-use software was $2.4 million and $2.7 million, respectively. Depreciation and amortization expense related to the Company’s property and equipment totaled $0.5 million and $0.9 million for the three and six months ended June 30, 2024 , respectively, which included amortization expense for internal-use software of $0.4 million and $0.8 million, respectively. Depreciation and amortization expense related to the Company’s property and equipment totaled $0.4 million and $1.4 million for the three and six ended June 30, 2023, respectively, which included amortization expense for internal-use software of $0.4 million and $1.3 million, respectively.

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Accrued Expenses

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

As of June 30, 2024 and December 31, 2023, accrued expenses consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Shipping	$	2,792	$	2,934
Compensation & benefits	1,779		3,164
Sales & use taxes payable	1,298		1,534
Allowance for transaction losses	914		1,172
Payment processor fees	342		557
Allowance for e-commerce returns	404		401
Other	1,910		1,121
Total accrued expenses	$	9,439	$	10,883

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Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

The Company’s operating lease arrangements are principally for office spaces in New York City. As of June 30, 2024, the Company had $21.5 million of operating lease right-of-use assets, $3.9 million and $20.1 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements, included in the measurement of lease liabilities, had a weighted-average remaining lease term of 5.3 years, a weighted-average discount rate of 6.1%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. As of December 31, 2023, the Company had $19.7 million of operating lease right-of-use assets, $3.1 million and $18.8 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet.

In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). The Sublease commenced on October 1, 2023 for approximately 78% of the rentable square feet and expanded to 100% of the rentable square feet on January 15, 2024. The sublease ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease, and contains an option for the lessee to terminate on the third anniversary of the commencement date. The Sublease contains a five month rent abatement provision, with an additional abatement against fixed rent for the sixth calendar month. In addition, the subtenant will be responsible for its proportionate share of certain defined expenses, including increases in taxes after the base year, as well as certain electric, heating, ventilation, and air conditioning charges. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations.

In November 2023, the Company entered into a lease agreement, as the lessee, for approximately 13,000 square feet for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an initial seven month rent abatement period. The Lease Agreement includes an option for the Company to extend the lease for an additional five years.

During the three and six months ended June 30, 2024, the Company paid $1.1 million and $2.1 million for amounts included in the measurement of lease liabilities, and $1.0 million and $2.0 million during the three and six months ended June 30, 2023, respectively. The Company did not enter into any new lease arrangements as a lessee during the three and six months ended June 30, 2024 and 2023.

The following table summarizes total lease expense, net for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	1,224	$	966	$	2,305	$	1,988
Short-term lease expense	12		33		12		54
Variable lease expense	328		321		608		576
Total lease expense	1,564		1,320		2,925		2,618
Sublease income	(1,054)		—		(1,753)		—
Total lease expense, net	$	510	$	1,320	$	1,172	$	2,618

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of June 30, 2024, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2024 (remaining)	$	(2,538)	$	1,689
2025	(5,380)		3,435
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
Thereafter	(4,292)		3,718
Total (payments) cash receipts	$	(27,999)	$	19,565
Less: imputed interest	3,988
Total lease liabilities	$	(24,011)

Leases

Leases

The Company’s operating lease arrangements are principally for office spaces in New York City. As of June 30, 2024, the Company had $21.5 million of operating lease right-of-use assets, $3.9 million and $20.1 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements, included in the measurement of lease liabilities, had a weighted-average remaining lease term of 5.3 years, a weighted-average discount rate of 6.1%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. As of December 31, 2023, the Company had $19.7 million of operating lease right-of-use assets, $3.1 million and $18.8 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet.

In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). The Sublease commenced on October 1, 2023 for approximately 78% of the rentable square feet and expanded to 100% of the rentable square feet on January 15, 2024. The sublease ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease, and contains an option for the lessee to terminate on the third anniversary of the commencement date. The Sublease contains a five month rent abatement provision, with an additional abatement against fixed rent for the sixth calendar month. In addition, the subtenant will be responsible for its proportionate share of certain defined expenses, including increases in taxes after the base year, as well as certain electric, heating, ventilation, and air conditioning charges. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations.

In November 2023, the Company entered into a lease agreement, as the lessee, for approximately 13,000 square feet for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an initial seven month rent abatement period. The Lease Agreement includes an option for the Company to extend the lease for an additional five years.

During the three and six months ended June 30, 2024, the Company paid $1.1 million and $2.1 million for amounts included in the measurement of lease liabilities, and $1.0 million and $2.0 million during the three and six months ended June 30, 2023, respectively. The Company did not enter into any new lease arrangements as a lessee during the three and six months ended June 30, 2024 and 2023.

The following table summarizes total lease expense, net for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	1,224	$	966	$	2,305	$	1,988
Short-term lease expense	12		33		12		54
Variable lease expense	328		321		608		576
Total lease expense	1,564		1,320		2,925		2,618
Sublease income	(1,054)		—		(1,753)		—
Total lease expense, net	$	510	$	1,320	$	1,172	$	2,618

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of June 30, 2024, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2024 (remaining)	$	(2,538)	$	1,689
2025	(5,380)		3,435
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
Thereafter	(4,292)		3,718
Total (payments) cash receipts	$	(27,999)	$	19,565
Less: imputed interest	3,988
Total lease liabilities	$	(24,011)

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Other Current Liabilities

6 Months Ended

Jun. 30, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities

As of June 30, 2024 and December 31, 2023, other current liabilities consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Sales and other non-income tax contingencies	$	2,656	$	2,462
Buyer deposits	283		377
Other	393		779
Total other current liabilities	$	3,332	$	3,618

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Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Equity

Equity

Preferred Stock

Effective June 14, 2021, in connection with the closing of the Company’s Initial Public Offering (“IPO”), the Company’s board of directors (“Board”) is authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value per share, in one or more series. The Company's Board has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. As of June 30, 2024 and December 31, 2023, no shares of preferred stock were issued or outstanding.

Common Stock

As of June 30, 2024 and December 31, 2023, the Company had authorized 400,000,000 shares of voting common stock, $0.01 par value per share. Each holder of the Company's common stock is entitled to one vote for each share on all matters to be voted upon by the stockholders and there are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Board out of legally available funds. If there is a liquidation, dissolution, or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. The rights, preferences, and privileges of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future.

As of June 30, 2024 and December 31, 2023, the Company had reserved shares of common stock for issuance in connection with the following:

	June 30, 2024	December 31, 2023
Options to purchase common stock	3,577,716	3,831,710
Restricted stock units outstanding	5,336,839	3,400,489
Shares available for future grant under the 2021 Plan	2,186,896	3,119,122
Shares available for future grant under the ESPP	1,971,655	1,572,504
Total	13,073,106	11,923,825

Treasury Stock

As of June 30, 2024, the Company had 4,926,635 shares of treasury stock carried at its cost basis of $25.4 million. In June 2024, the Board authorized an increase to the Company’s Stock Repurchase Program to an aggregate repurchase amount of $25.5 million, and subsequently announced the completion of its repurchase plan. As of December 31, 2023, the Company had 823,483 shares of treasury stock carried at its cost basis of $3.5 million.

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Stock-based compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based compensation

Stock-based compensation

2011 Option Plan

The Company adopted the 2011 Stock Option and Grant Plan (the “2011 Plan”) on September 2, 2011 and amended and restated the plan on December 14, 2011. The 2011 Plan provided for the Company to grant incentive stock options or non-qualified stock options, restricted stock awards, and other stock-based awards to its employees, directors, officers, outside advisors, and non-employee consultants. At the time of grant, the options issued to new employees pursuant to the 2011 Plan expire ten years from the date of grant and generally vest over four years, with 25% vesting on the first anniversary and the balance vesting ratably over the remaining 36 months. Options issued pursuant to the 2011 Plan expire ten years from the date of grant and generally vest ratably over 48 months.

The 2011 Plan was administered by the Compensation Committee of the Board. The exercise prices, vesting, and other restrictions were determined at the discretion of Compensation Committee of the Board.

Following the completion of the Company’s IPO in June 2021, no additional awards and no shares of the Company’s common stock remain available for future issuance under the 2011 Plan. However, the 2011 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder.

2021 Stock Incentive Plan

In May 2021, the Company's Board adopted, and its stockholders approved, the 2021 Stock Incentive Plan (the “2021 Plan”), which became effective upon the SEC declaring the Company’s IPO registration statement effective. The 2021 Plan provides for the grant of incentive stock options (“ISOs”), non-statutory stock options, restricted share awards, stock unit awards (“RSUs”), stock appreciation rights, cash-based awards, and performance-based stock awards, or collectively, stock awards. ISOs may be granted only to the Company’s employees, including officers, and the employees of its parent or subsidiaries. All other stock awards may be granted to the Company’s employees, officers, non-employee directors, consultants, and the employees and consultants of its parent, subsidiaries, and affiliates. Depending on the nature of the award granted, the vesting terms may differ. Generally for new hire awards, the requisite service period for RSUs to vest is over four years from the grant date, with 25% vesting on the first anniversary and the balance vesting ratably on a quarterly basis over the remaining vesting period. Generally, all additional RSUs vest ratably on a quarterly basis over three or four years beginning on the three month anniversary from the grant date. For RSU grants to members of our Board of Directors, initial awards vest ratably on an annual basis over three years, and over one year for our Board of Directors annual awards.

The aggregate number of shares of the Company’s common stock that may be issued pursuant to stock awards under the 2021 Plan will not exceed the sum of (x) 4,333,333 shares (as adjusted for stock splits, stock dividends, combinations, and the like), plus (y) the sum of (1) the number of reserved shares not issued or subject to outstanding awards under the 2011 Plan on the effective date of the 2021 Plan and (2) the number of shares subject to outstanding stock awards granted under the 2011 Plan and that, following the effective date of the 2021 Plan, (A) are subsequently forfeited or terminated for any reason before being exercised or settled, (B) are not issued because such stock award is settled in cash, (C) are subject to vesting restrictions and are subsequently forfeited, (D) are withheld or reacquired to satisfy the applicable exercise, strike, or purchase price, or (E) are withheld or reacquired to satisfy a tax withholding obligation, plus (z) an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022 and ending on, and including, January 1, 2031, in an amount equal to the lesser of (i) 5% of the outstanding shares on the last day of the immediately preceding fiscal year or (ii) such lesser amount that the Compensation Committee of the Board determines for purposes of the annual increase for that fiscal year. On January 1, 2024, the number of shares of common stock available for issuance under the 2021 Plan was automatically increased according to its terms by 1,995,756 shares.

As of June 30, 2024, 2,186,896 shares were available for future grants of the Company’s common stock.

Stock Options

The following table summarizes the Company’s stock option activity since December 31, 2023:

	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	3,831,710	$	6.97	5.8	$	826
Granted	—	$	—
Exercised	(193,862)	$	4.05
Cancelled/Forfeited	(60,132)	$	9.05
Outstanding as of June 30, 2024	3,577,716	$	7.09	5.6	$	477
Options exercisable as of June 30, 2024	2,910,287	$	6.86	5.2	$	477
Options vested and expected to vest as of June 30, 2024	3,577,716	$	7.09	5.6	$	477

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for all stock options that had exercise prices lower than the fair value of the Company’s common stock.

There were no stock options granted during the three and six months ended June 30, 2024 and 2023. The aggregate intrinsic value of stock options exercised was less than $0.1 million and $0.3 million during the three and six months ended June 30, 2024, and less than $0.1 million during each of the three and six months ended June 30, 2023, respectively. The total fair value of stock options vested was $1.0 million and $1.7 million during the three and six months ended June 30, 2024, and $1.2 million and $2.0 million during the three and six months ended June 30, 2023, respectively.

The stock options granted during the fiscal year ended December 31, 2021 included 615,997 stock options granted to executive officers that include a performance condition related to a sale event or initial public offering occurring before December 31, 2021 in addition to the standard service condition. These options will vest over four years, with approximately 21% vested on January 1, 2022, and the balance vesting ratably over the remaining 38 months. Stock-based compensation expense of $0.2 million and $0.3 million was recognized for options having a performance condition during the three and six months ended June 30, 2024 and 2023, respectively.

Restricted Stock Units

The following table summarizes the activity related to the Company's restricted stock units:

	Outstanding Restricted Stock Units	Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2023	3,400,489	$	5.40
Granted	3,045,082	5.86
Vested	(1,051,764)	5.50
Cancelled	(56,968)	5.89
Outstanding as of June 30, 2024	5,336,839	$	5.64

The estimated weighted-average grant date fair value of restricted stock units granted was $5.55 and $5.86 per share for the three and six months ended June 30, 2024, and $3.65 and $3.95 per share for the three and six months ended June 30, 2023, respectively. The total grant date fair value of restricted stock units vested was $3.9 million and $5.8 million for the three and six months ended June 30, 2024, and $3.1 million and $5.2 million for the three and six months ended June 30, 2023, respectively.

Employee Stock Purchase Plan

In May 2021, the Company's Board adopted, and its stockholders approved, the Company's 2021 Employee Stock Purchase Plan (the "ESPP"). A total of 1,971,655 shares of the Company's authorized but unissued or reacquired shares of its common stock (as adjusted for stock splits, stock dividends, combinations, and the like) are available for issuance under the ESPP. The number of shares of the Company's common stock that will be available for issuance under the ESPP also includes an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022, equal to the least of: (i) 1% of the outstanding shares of the Company’s common stock on such date, (ii) 400,000 shares (as adjusted for stock splits, stock dividends, combinations, and the like) or (iii) a lesser amount determined by the Compensation Committee or the Company’s Board of Directors. On January 1, 2024, the number of shares of common stock available for issuance under the ESPP was automatically increased according to its terms by 399,151 shares.

During regularly scheduled “offerings” under the ESPP, participants may purchase the Company’s common stock through payroll deductions, up to a maximum of 15% of their eligible compensation, or such lower limit as may be determined by the Compensation Committee from time to time. Participants will be able to withdraw their accumulated payroll deductions prior to the end of the offering period in accordance with the terms of the offering. Participation in the ESPP will end automatically on termination of employment. The purchase price will be specified pursuant to the offering, but cannot, under the terms of the ESPP, be less than 85% of the fair market value per share of the Company’s common stock on either the offering date or on the purchase date, whichever is less. The fair market value of the Company’s common stock for this purpose will generally be the closing price on Nasdaq (or such other exchange as the Company’s common stock may be traded at the relevant time) for the date in question, or if such date is not a trading day, for the last trading day before the date in question. As of June 30, 2024, an initial offering period has not commenced, and for the three and six months ended June 30, 2024 and 2023, no shares of common stock were purchased under the ESPP.

Stock-Based Compensation Expense

The following table summarizes the classification of the Company’s stock-based compensation expense in the condensed consolidated statements of operations:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	87	$	88	$	167	$	237
Sales and marketing	980		742		1,711		1,449
Technology development	1,037		959		1,774		2,010
General and administrative	1,912		1,463		3,454		2,662
Total stock-based compensation expense	$	4,016	$	3,252	$	7,106	$	6,358

Stock-based compensation capitalized in connection with the Company’s internal-use software was less than $0.1 million for each of the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, total unrecognized compensation expense related to unvested stock-based awards was $32.2 million, which is expected to be recognized over a weighted-average period of 2.5 years.

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision was immaterial for the three and six months ended June 30, 2024 and 2023 due to the net loss before income taxes incurred for the year ended December 31, 2023 and expected to be incurred for the year ending December 31, 2024, as well as the Company’s continued maintenance of a full valuation allowance against its net deferred tax assets. There were no material liabilities for interest and penalties accrued as of June 30, 2024.

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Net Loss Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

The following table summarizes the computation of basic and diluted net loss per share for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2024		2023		2024		2023
Numerator:
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)
Denominator:
Weighted average common shares outstanding—basic and diluted	38,517,785		39,642,725		39,131,456		39,487,496
Net loss per share—basic and diluted	$	(0.12)	$	(0.21)	$	(0.20)	$	(0.42)

The Company’s potentially dilutive securities, which include outstanding stock options and restricted stock units have been excluded from the computation of diluted net loss per share from each period as including them would have had an anti-dilutive effect. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potentially dilutive securities for each period presented:

	June 30,
	2024	2023
Options to purchase common stock	3,577,716	4,003,501
Restricted stock units	5,336,839	4,529,829
Total	8,914,555	8,533,330

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Contractual Obligations

The Company has $31.8 million of non-cancelable contractual commitments as of June 30, 2024, primarily related to its operating lease agreements for both its current and former corporate headquarters in New York, NY, not including any offset for sublease income, as well as other software and support services. For those agreements with variable terms, the Company does not estimate what the total obligation may be beyond any minimum obligations. The following table represents the Company’s commitments under its purchase obligations as of June 30, 2024 (in thousands):

Fiscal Year Ending December 31,	Lease Obligations		Other Obligations		Total Obligations
2024 (remaining)	$	2,538	$	1,203	$	3,741
2025	5,380		1,479		6,859
2026	5,263		861		6,124
2027	5,263		273		5,536
2028	5,263		19		5,282
Thereafter	4,292		—		4,292
Total	$	27,999	$	3,835	$	31,834

Legal Proceedings

The Company is subject to various claims and contingencies, which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters, and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where the Company believes a conclusion to the matter will be reached. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible. The Company does not believe that it is party to any pending legal proceedings that are likely to have a material effect on its business, financial condition, or results of operations.

Indemnification

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board and officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (4,437)	$ (8,320)	$ (7,740)	$ (16,453)

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Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Thomas Etergino [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 13, 2024, Thomas Etergino, our Chief Financial Officer, entered into a 10b5-1 trading plan during an open insider trading window, intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions for trades over a period of time from October 8, 2024 until July 31, 2025 or such earlier time as when 22,000 shares of the Company’s common stock are sold.
Name	Thomas Etergino
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 13, 2024
Expiration Date	July 31, 2025
Arrangement Duration	296 days
Matthew Rubinger [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		Matthew Rubinger, our Chief Commercial Officer, entered into a 10b5-1 trading plan during an open insider trading window, intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions for trades over a period of time from December 18, 2024 until December 17, 2025 or such earlier time as when 84,784 shares of the Company’s common stock are sold.
Name	Matthew Rubinger
Title	Chief Commercial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 13, 2024
Expiration Date	December 17, 2025
Arrangement Duration	364 days
Trading Arrangement, Common Stock [Member] | Thomas Etergino [Member]
Trading Arrangements, by Individual
Aggregate Available	22,000	22,000
Trading Arrangement, Common Stock [Member] | Matthew Rubinger [Member]
Trading Arrangements, by Individual
Aggregate Available	84,784	84,784

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.

The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, impairment assessment of goodwill, capitalization of internal-use software and determination of useful lives, income taxes, and the valuation of stock-based compensation and leases. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. As of June 30, 2024, the Company’s restricted cash relates to $3.6 million in Letters of Credit for its office leases in New York, New York. During the three and six months ended June 30, 2024, the Company purchased $8.9 million and $25.6 million of available-for-sale securities classified as cash equivalents, respectively. During the three and six months ended June 30, 2023, the Company purchased $19.9 million and $31.8 million of available-for-sale securities classified as cash equivalents, respectively. The carrying value of the restricted cash approximates fair value.

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard will require all public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items on an annual and interim basis. The guidance requires a public entity to disclose the significant expense categories and amounts that are regularly provided to the chief operating decision-maker. This standard is effective for the Company’s annual report ending December 31, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance and while it only has one reportable segment, it does expect to enhance its current disclosures in the notes to the financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures. The standard will require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new standard is effective for the Company’s annual report ending December 31, 2025. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restructuring Rollforward of Charges, Payments and Accrued Balances

The following table displays a rollforward of the charges and payments to the accrued balance as of June 30, 2024:

(in thousands)	Restructuring Charges
Balance, December 31, 2023	$	396
Restructuring charges	372
Cash payments	(396)
Balance, June 30, 2024	$	372

Restructuring Charges

The expense is included within the respective financial statement line items on the condensed consolidated statements of operations as shown in the table below:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	—	$	135	$	—	$	135
Sales and marketing	—		789		—		789
Technology development	—		1,044		—		1,044
General and administrative	372		36		372		36
Total	$	372	$	2,004	$	372	$	2,004

Cash and Cash Equivalents

The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented:

(in thousands)	June 30, 2024		June 30, 2023
Cash and cash equivalents	$	23,807	$	45,410
Restricted cash, non-current	3,620		3,335
Total cash, cash equivalents, and restricted cash	$	27,427	$	48,745

Restricted Cash

The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented:

(in thousands)	June 30, 2024		June 30, 2023
Cash and cash equivalents	$	23,807	$	45,410
Restricted cash, non-current	3,620		3,335
Total cash, cash equivalents, and restricted cash	$	27,427	$	48,745

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The table below segregates all assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date:

	June 30, 2024
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	1,863	$	—	$	—	$	1,863
Commercial paper	—		1,979		—		1,979
U.S. Treasury securities	—		2,196		—		2,196
Total cash equivalents	$	1,863	$	4,175	$	—	$	6,038
Short-term investments:
Commercial paper	$	—	$	6,151	$	—	$	6,151
Corporate notes	—		16,542		—		16,542
U.S. Treasury securities	—		10,705		—		10,705
U.S. Government agency securities	—		53,427		—		53,427
Total short-term investments	$	—	$	86,825	$	—	$	86,825

	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	5,797	$	—	$	—	$	5,797
U.S. Treasury securities	—		4,991		—		4,991
Total cash equivalents	$	5,797	$	4,991	$	—	$	10,788
Short-term investments:
Commercial paper	$	—	$	18,112	—		18,112
Corporate notes	—		7,641		—		7,641
U.S. Treasury securities	—		11,971		—		11,971
U.S. Government agency securities	—		64,202		—		64,202
Total short-term investments	$	—	$	101,926	$	—	$	101,926

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Net Revenue by Type of Service

The following table summarizes the Company’s net revenue by type of service for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Seller marketplace services	$	21,962	$	20,761	$	43,800	$	42,772
Other services	273		160		497		327
Total net revenue	$	22,235	$	20,921	$	44,297	$	43,099

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Short-Term Investments (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Short-term Investments

The following table summarizes the estimated value of the Company’s short-term investments as of the periods presented:

	June 30, 2024
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	6,156	$	—	$	(5)	$	6,151
Corporate notes	16,595		1		(54)		16,542
U.S. Treasury securities	10,733		—		(28)		10,705
U.S. Government agency securities	53,507		1		(81)		53,427
Total short-term investments	$	86,991	$	2	$	(168)	$	86,825

	December 31, 2023
(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Commercial paper	$	18,101	$	14	$	(3)	$	18,112
Corporate notes	7,621		20		—		7,641
U.S. Treasury securities	11,975		2		(6)		11,971
U.S. Government agency securities	64,134		89		(21)		64,202
Total short-term investments	$	101,831	$	125	$	(30)	$	101,926

Short-term Investments By Contractual Maturity

As of June 30, 2024, the fair value of short-term investments by remaining contractual maturity consisted of the following:

(in thousands)	Fair Value
Remaining maturity date one year or less	$	66,352
Remaining maturity date greater than one year	20,473
Total short-term investments	$	86,825

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Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

As of June 30, 2024 and December 31, 2023, property and equipment, net consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Internal-use software	$	20,130	$	19,541
Leasehold improvements	4,029		3,605
Furniture and fixtures	68		1,131
Computer equipment and software	550		919
Software in progress	853		569
Total property and equipment, gross	25,630		25,765
Less: Accumulated depreciation and amortization	(21,643)		(22,381)
Total property and equipment, net	$	3,987	$	3,384

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Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses

As of June 30, 2024 and December 31, 2023, accrued expenses consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Shipping	$	2,792	$	2,934
Compensation & benefits	1,779		3,164
Sales & use taxes payable	1,298		1,534
Allowance for transaction losses	914		1,172
Payment processor fees	342		557
Allowance for e-commerce returns	404		401
Other	1,910		1,121
Total accrued expenses	$	9,439	$	10,883

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Lease Expense

The following table summarizes total lease expense, net for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	1,224	$	966	$	2,305	$	1,988
Short-term lease expense	12		33		12		54
Variable lease expense	328		321		608		576
Total lease expense	1,564		1,320		2,925		2,618
Sublease income	(1,054)		—		(1,753)		—
Total lease expense, net	$	510	$	1,320	$	1,172	$	2,618

Remaining Operating Lease Payments

As of June 30, 2024, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2024 (remaining)	$	(2,538)	$	1,689
2025	(5,380)		3,435
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
Thereafter	(4,292)		3,718
Total (payments) cash receipts	$	(27,999)	$	19,565
Less: imputed interest	3,988
Total lease liabilities	$	(24,011)

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Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

As of June 30, 2024 and December 31, 2023, other current liabilities consisted of the following:

(in thousands)	June 30, 2024		December 31, 2023
Sales and other non-income tax contingencies	$	2,656	$	2,462
Buyer deposits	283		377
Other	393		779
Total other current liabilities	$	3,332	$	3,618

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Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Reserved Shares of Common Stock

As of June 30, 2024 and December 31, 2023, the Company had reserved shares of common stock for issuance in connection with the following:

	June 30, 2024	December 31, 2023
Options to purchase common stock	3,577,716	3,831,710
Restricted stock units outstanding	5,336,839	3,400,489
Shares available for future grant under the 2021 Plan	2,186,896	3,119,122
Shares available for future grant under the ESPP	1,971,655	1,572,504
Total	13,073,106	11,923,825

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Stock-based compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock Option Activity

The following table summarizes the Company’s stock option activity since December 31, 2023:

	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	3,831,710	$	6.97	5.8	$	826
Granted	—	$	—
Exercised	(193,862)	$	4.05
Cancelled/Forfeited	(60,132)	$	9.05
Outstanding as of June 30, 2024	3,577,716	$	7.09	5.6	$	477
Options exercisable as of June 30, 2024	2,910,287	$	6.86	5.2	$	477
Options vested and expected to vest as of June 30, 2024	3,577,716	$	7.09	5.6	$	477

Restricted Stock Units Activity

The following table summarizes the activity related to the Company's restricted stock units:

	Outstanding Restricted Stock Units	Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2023	3,400,489	$	5.40
Granted	3,045,082	5.86
Vested	(1,051,764)	5.50
Cancelled	(56,968)	5.89
Outstanding as of June 30, 2024	5,336,839	$	5.64

Classification of Stock-based Compensation

The following table summarizes the classification of the Company’s stock-based compensation expense in the condensed consolidated statements of operations:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	87	$	88	$	167	$	237
Sales and marketing	980		742		1,711		1,449
Technology development	1,037		959		1,774		2,010
General and administrative	1,912		1,463		3,454		2,662
Total stock-based compensation expense	$	4,016	$	3,252	$	7,106	$	6,358

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

The following table summarizes the computation of basic and diluted net loss per share for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2024		2023		2024		2023
Numerator:
Net loss	$	(4,437)	$	(8,320)	$	(7,740)	$	(16,453)
Denominator:
Weighted average common shares outstanding—basic and diluted	38,517,785		39,642,725		39,131,456		39,487,496
Net loss per share—basic and diluted	$	(0.12)	$	(0.21)	$	(0.20)	$	(0.42)

Antidilutive Securities

The Company excluded the following potentially dilutive securities for each period presented:

	June 30,
	2024	2023
Options to purchase common stock	3,577,716	4,003,501
Restricted stock units	5,336,839	4,529,829
Total	8,914,555	8,533,330

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Summary of Commitments Under Purchase Obligations

The following table represents the Company’s commitments under its purchase obligations as of June 30, 2024 (in thousands):

Fiscal Year Ending December 31,	Lease Obligations		Other Obligations		Total Obligations
2024 (remaining)	$	2,538	$	1,203	$	3,741
2025	5,380		1,479		6,859
2026	5,263		861		6,124
2027	5,263		273		5,536
2028	5,263		19		5,282
Thereafter	4,292		—		4,292
Total	$	27,999	$	3,835	$	31,834

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Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 372	$ 2,004	$ 372	$ 2,004
Number of reportable segments | segment				1
General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 372	36	$ 372	$ 36
Workforce Reduction Plan, June 2023
Restructuring Cost and Reserve [Line Items]
Workforce reduction, percentage	20.00%
Restructuring costs			$ 2,000

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Basis of Presentation and Summary of Significant Accounting Policies - Restructuring Reserve (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Balance, December 31, 2023	$ 396
Restructuring charges	372
Cash payments	(396)
Balance, June 30, 2024	$ 372

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Basis of Presentation and Summary of Significant Accounting Policies - Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 372	$ 2,004	$ 372	$ 2,004
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	135	0	135
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	789	0	789
Technology development
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	1,044	0	1,044
General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 372	$ 36	$ 372	$ 36

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Basis of Presentation and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 23,807	$ 45,410	$ 23,807	$ 45,410	$ 37,395
Restricted cash, non-current	3,620	3,335	3,620	3,335	3,580
Total cash, cash equivalents, and restricted cash	27,427	48,745	27,427	48,745	$ 40,975	$ 158,043
Restricted Cash and Cash Equivalents Items [Line Items]
Purchases of short-term investments			51,507	110,411
Letter of Credit | NEW YORK
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	3,600		3,600
Cash Equivalents
Restricted Cash and Cash Equivalents Items [Line Items]
Purchases of short-term investments	$ 8,900	$ 19,900	$ 25,600	$ 31,800

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Fair Value of Financial Instruments - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	$ 6,038	$ 10,788
Total short-term investments	86,825	101,926
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	6,151	18,112
Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	16,542	7,641
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	10,705	11,971
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	53,427	64,202
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	1,863	5,797
Total short-term investments	0	0
Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 1 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 1 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 1 | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	4,175	4,991
Total short-term investments	86,825	101,926
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	6,151	18,112
Level 2 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	16,542	7,641
Level 2 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	10,705	11,971
Level 2 | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	53,427	64,202
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Total short-term investments	0	0
Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 3 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 3 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Level 3 | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	1,863	5,797
Money market fund | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	1,863	5,797
Money market fund | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Money market fund | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	1,979
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	1,979
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	2,196	4,991
U.S. Treasury securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	2,196	4,991
U.S. Treasury securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	$ 0	$ 0

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Revenue Recognition - Net Revenue by Type of Service (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total net revenue	$ 22,235	$ 20,921	$ 44,297	$ 43,099
Seller marketplace services
Disaggregation of Revenue [Line Items]
Total net revenue	21,962	20,761	43,800	42,772
Other services
Disaggregation of Revenue [Line Items]
Total net revenue	$ 273	$ 160	$ 497	$ 327

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Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Costs to obtain revenue contracts	$ 400		$ 400		$ 500
Capitalized contract cost, current	200		200		300
Capitalized contract cost, noncurrent	200		200		$ 200
Amortization of costs to obtain revenue contracts	$ 100	$ 100	$ 160	$ 162

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Short-Term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 86,991	$ 101,831
Unrealized Gain	2	125
Unrealized Loss	(168)	(30)
Fair Value	86,825	101,926
Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	6,156	18,101
Unrealized Gain	0	14
Unrealized Loss	(5)	(3)
Fair Value	6,151	18,112
Corporate notes
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	16,595	7,621
Unrealized Gain	1	20
Unrealized Loss	(54)	0
Fair Value	16,542	7,641
U.S. Treasury securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	10,733	11,975
Unrealized Gain	0	2
Unrealized Loss	(28)	(6)
Fair Value	10,705	11,971
U.S. Government agency securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	53,507	64,134
Unrealized Gain	1	89
Unrealized Loss	(81)	(21)
Fair Value	$ 53,427	$ 64,202

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Short-Term Investments - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale, realized loss	$ 100,000		$ 100,000
Debt securities, available-for-Sale, amount of securities sold	18,700,000		18,700,000
Available-for-sale, debt securities credit losses	0	$ 0	0	$ 0
Securities in a continuous unrealized loss position for 12 months or longer	$ 0		$ 0

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Short-Term Investments - Short-term Investments By Contractual Maturity (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Remaining maturity date one year or less	$ 66,352
Remaining maturity date greater than one year	20,473
Total short-term investments	$ 86,825

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Property and Equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 25,630	$ 25,765
Less: Accumulated depreciation and amortization	(21,643)	(22,381)
Total property and equipment, net	3,987	3,384
Internal-use software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	20,130	19,541
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	4,029	3,605
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	68	1,131
Computer equipment and software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	550	919
Software in progress
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 853	$ 569

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Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Net book value of internal-use software	$ 2.4		$ 2.4		$ 2.7
Depreciation	0.5	$ 0.4	0.9	$ 1.4
Internal-use software amortization expense	$ 0.4	$ 0.4	$ 0.8	$ 1.3

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Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Shipping	$ 2,792	$ 2,934
Compensation & benefits	1,779	3,164
Sales & use taxes payable	1,298	1,534
Allowance for transaction losses	914	1,172
Payment processor fees	342	557
Allowance for e-commerce returns	404	401
Other	1,910	1,121
Total accrued expenses	$ 9,439	$ 10,883

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Leases - Narrative (Details) ft² in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jan. 15, 2024	Dec. 31, 2023 USD ($)	Nov. 01, 2023 ft²	Oct. 01, 2023
Leases [Abstract]
Operating lease right-of-use assets	$ 21,481		$ 21,481			$ 19,655
Operating lease liabilities, current	3,932		3,932			3,107
Operating lease liabilities, non-current	$ 20,079		$ 20,079			$ 18,812
Operating lease liabilities, weighted-average remaining lease term	5 years 3 months 18 days		5 years 3 months 18 days
Operating lease liabilities, weighted-average discount rate	6.10%		6.10%
Sublease rentable space, percentage					1			0.78
Sublease abatement provision term			5 months
Lessee, lease not yet commenced, net rentable area | ft²							13
Lessee, Operating Lease, Term of Contract							5 years
Lessee, lease not yet commenced, initial abatement term							7 months
Lessee, lease not yet commenced, renewal term							5 years
Lease payments	$ 1,100	$ 1,000	$ 2,100	$ 2,000

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Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease expense	$ 1,224	$ 966	$ 2,305	$ 1,988
Short-term lease expense	12	33	12	54
Variable lease expense	328	321	608	576
Total lease expense	1,564	1,320	2,925	2,618
Sublease income	(1,054)	0	(1,753)	0
Total lease expense, net	$ 510	$ 1,320	$ 1,172	$ 2,618

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Leases - Remaining Operating Lease Payments (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Operating Lease Payments
2024 (remaining)	$ (2,538)
2025	(5,380)
2026	(5,263)
2027	(5,263)
2028	(5,263)
Thereafter	(4,292)
Total (payments) cash receipts	(27,999)
Less: imputed interest	3,988
Total lease liabilities	(24,011)
Sublease Cash Receipts
2024 (remaining)	1,689
2025	3,435
2026	3,504
2027	3,574
2028	3,645
Thereafter	3,718
Total (payments) cash receipts	$ 19,565

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Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Sales and other non-income tax contingencies	$ 2,656	$ 2,462
Buyer deposits	283	377
Other	393	779
Total other current liabilities	$ 3,332	$ 3,618

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Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 14, 2021
Equity [Abstract]
Preferred stock, authorized (in shares)	10,000,000	10,000,000	10,000,000
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, authorized (in shares)	400,000,000	400,000,000
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Treasury stock, common (in shares)	4,926,635	823,483
Treasury stock, value, acquired, cost method	$ 25.4	$ 3.5
Stock repurchase program, authorized amount	$ 25.5

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Equity - Reserved Shares of Common Stock (Details) - shares	Jun. 30, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	13,073,106	11,923,825
Options to purchase common stock
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	3,577,716	3,831,710
Restricted stock units outstanding
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	5,336,839	3,400,489
Shares available for future grant under the ESPP
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	1,971,655	1,572,504
Shares available for future grant under the 2021 Plan
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	2,186,896	3,119,122

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Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2024	Jan. 01, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)			0	0	0	0
Aggregate intrinsic value of stock options exercised			$ 100	$ 100	$ 300	$ 100
Fair value of stock options vested			1,000	1,200	1,700	2,000
Total stock-based compensation expense			4,016	$ 3,252	$ 7,106	6,358
Weighted-average grant date fair value of restricted stock units granted (in usd per share)				$ 3.65	$ 5.86
Grant date fair value of restricted stock units vested				$ 3,100
Share-based compensation capitalized			100	100	$ 100	100
Unrecognized compensation expense			32,200		32,200
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense			$ 200	$ 300	$ 200	$ 300
Unrecognized compensation expense, weighted-average period for recognition					2 years 6 months
Stock Options with Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							4 years
Stock options granted (in shares)							615,997
Stock Options with Performance Condition | Vesting Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		21.00%
Stock Options with Performance Condition | Vesting Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							38 months
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares that may be issued (in shares)			1,971,655		1,971,655
Maximum number of shares that may be issued, annual increase percentage					1.00%
Increase in common stock available for future issuance (in shares)	399,151
Annual increase in number of shares that may be issued, term					10 years
Maximum number of shares that may be issued, annual increase (in shares)					400,000
Maximum percentage of eligible compensation			15.00%		15.00%
Purchase price percentage					85.00%
Common stock shares purchased for issuance under award plan (in shares)			0	0	0	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of restricted stock units granted (in usd per share)			$ 5.55		$ 5.86	$ 3.95
Grant date fair value of restricted stock units vested			$ 3,900		$ 5,800	$ 5,200
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
2011 Plan | Stock Options - New Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period					10 years
Vesting period					4 years
2011 Plan | Stock Options - New Employees | Vesting Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					1 year
Vesting percentage					25.00%
2011 Plan | Stock Options - New Employees | Vesting Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					36 months
2011 Plan | Share-Based Payment Arrangement, Option, Others
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period					10 years
Vesting period					48 months
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares that may be issued (in shares)			4,333,333		4,333,333
Maximum shares that may be issued, annual increase, period					10 years
Maximum number of shares that may be issued, annual increase percentage					5.00%
Increase in common stock available for future issuance (in shares)	1,995,756
Shares available for future grants (in shares)			2,186,896		2,186,896
2021 Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Vesting percentage					25.00%
2021 Plan | RSU, Initial Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
2021 Plan | RSU, Annual Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					1 year

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Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Number of Options
Outstanding (in shares)			3,831,710
Granted (in shares)	0	0	0	0
Exercised (in shares)			(193,862)
Cancelled/Forfeited (in shares)			(60,132)
Outstanding (in shares)	3,577,716		3,577,716		3,831,710
Options exercisable (in shares)	2,910,287		2,910,287
Options vested and expected to vest (in shares)	3,577,716		3,577,716
Weighted-Average Exercise Price
Outstanding (in usd per share)			$ 6.97
Granted (in usd per share)			0
Exercised (in usd per share)			4.05
Cancelled/Forfeited (in usd per share)			9.05
Outstanding (in usd per share)	$ 7.09		7.09		$ 6.97
Options exercisable (in usd per share)	6.86		6.86
Options vested and expected to vest (in usd per share)	$ 7.09		$ 7.09
Weighted Average Remaining Contractual Term
Outstanding			5 years 7 months 6 days		5 years 9 months 18 days
Exercisable			5 years 2 months 12 days
Vested and expected to vest			5 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding	$ 477		$ 477		$ 826
Exercisable	477		477
Vested and expected to vest	$ 477		$ 477

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Stock-based compensation - Restricted Stock Units Activity (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024
Outstanding Restricted Stock Units
Outstanding (in shares)		3,400,489
Granted (in shares)		3,045,082
Vested (in shares)		(1,051,764)
Cancelled (in shares)		(56,968)
Outstanding (in shares)		5,336,839
Weighted-Average Grant Date Fair Value
Outstanding (in usd per share)		$ 5.40
Granted (in usd per share)	$ 3.65	5.86
Vested (in usd per share)		5.50
Cancelled (in usd per share)		5.89
Outstanding (in usd per share)		$ 5.64

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Stock-based compensation - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 4,016	$ 3,252	$ 7,106	$ 6,358
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	87	88	167	237
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	980	742	1,711	1,449
Technology development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,037	959	1,774	2,010
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,912	$ 1,463	$ 3,454	$ 2,662

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Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss	$ (4,437)	$ (8,320)	$ (7,740)	$ (16,453)
Denominator:
Weighted average common shares outstanding—basic (in shares)	38,517,785	39,642,725	39,131,456	39,487,496
Weighted average common shares outstanding—diluted (in shares)	38,517,785	39,642,725	39,131,456	39,487,496
Net loss per share—basic (in usd per share)	$ (0.12)	$ (0.21)	$ (0.20)	$ (0.42)
Net loss per share—diluted (in usd per share)	$ (0.12)	$ (0.21)	$ (0.20)	$ (0.42)

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Net Loss Per Share - Antidilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss (in shares)	8,914,555	8,533,330
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss (in shares)	3,577,716	4,003,501
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss (in shares)	5,336,839	4,529,829

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Commitments and Contingencies - Narrative (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contractual obligation	$ 31,834

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Commitments and Contingencies - Summary of Commitments Under Purchase Obligations (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Lease Obligations
2024 (remaining)	$ 2,538
2025	5,380
2026	5,263
2027	5,263
2028	5,263
Thereafter	4,292
Total (payments) cash receipts	27,999
Other Obligations
2024 (remaining)	1,203
2025	1,479
2026	861
2027	273
2028	19
Thereafter	0
Total	3,835
Total Obligations
2024 (remaining)	3,741
2025	6,859
2026	6,124
2027	5,536
2028	5,282
Thereafter	4,292
Total	$ 31,834