Jun. 13 at 8:18 PM
$DIBS a key point that was made at their recent conference is that they have over
$10B of inventory listed on their website and currently sell ~4% of it. The ~
$400M of product that is sold generates
$100M in revenue
They do not need more inventory and they do not necessarily need more traffic, they need to convert what traffic they have at higher rates. So their when you look at OpEx the only place they are investing is into R&D to improve the buyer experience; they do not need more salespeople (they already have
$10B of inventory) or general admin.
If they sold 5% of inventory on the website revenue would jump to
$125M and they would be profitable and scaling. If a business spending
$22M per year on R&D is able to figure this problem out, then the company goes from trading at a discount to cash value to trading at a multiple of revenue hundreds of percent above here
