Etsy, Inc. Earnings Call Transcripts
Fiscal Year 2026
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Leadership outlined a renewed focus on four growth priorities, leveraging AI and LLMs to improve discovery, engagement, and personalization. The sale of Depop brings a $1.2B cash infusion, supporting investment and buybacks. Agentic commerce, marketing innovation, and a differentiated marketplace position the company for further growth.
Fiscal Year 2025
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Q4 saw record revenue and a return to core marketplace growth, driven by strategic focus on personalization, app engagement, and operational restructuring. The sale of Depop to eBay will enable exclusive investment in the core business, with 2026 guidance calling for slight GMS growth and stable margins.
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Etsy is undergoing a CEO transition, with a focus on AI-driven personalization, discovery, and engagement to drive future growth. Strategic investments in technology and agentic commerce, along with Depop's strong performance, position the company for continued expansion.
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Q3 2025 results exceeded expectations with consolidated GMS and revenue growth, driven by strong Depop performance and AI-powered personalization. Leadership transition to Kruti Patel Goyal as CEO is underway, with continued investment in marketing and technology to drive sustainable growth.
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Maintaining strong post-pandemic growth, the business is prioritizing discovery, personalization, and app-centric experiences, powered by AI and dynamic marketing. Financial discipline, marketplace resilience, and learnings from Depop support ongoing growth and shareholder returns.
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Second quarter results showed improved GMS trends, strong Depop growth, and higher app engagement, with revenue up 4% and adjusted EBITDA margin at 25.1%. Q3 guidance anticipates further sequential improvement, supported by ongoing investments in personalization and marketing.
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Record revenue and strong cash flow were achieved despite top-line results falling short of expectations. All board proposals, including director elections and a $1B buyback, were approved, with strategic focus shifting to growth, AI-driven personalization, and core marketplace investments.
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Gross merchandise sales and active buyers have grown significantly, with strong retention post-pandemic. Strategic focus is on personalization, app adoption, and leveraging AI for curation, while maintaining high margins and investing in international and category expansion.
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The marketplace is focusing on long-term differentiation through quality, personalization, and app-centric strategies, while maintaining strong margins and minimal exposure to tariffs. Investments in AI, marketing, and subsidiary management are driving growth and positioning the platform as a resilient, unique alternative in e-commerce.
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Q1 2025 results met expectations with a slight beat on take rate and adjusted EBITDA margin. GMS declined year-over-year, but revenue and take rate improved, supported by strong Depop growth and product innovation. Outlook anticipates similar GMS trends in Q2, with continued focus on personalization and app engagement.
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Resilient business model and strong cash flow support ongoing investment in product differentiation and AI, despite macro headwinds. Product and marketing strategies are shifting to drive long-term growth, with Depop's turnaround offering valuable insights.
Fiscal Year 2024
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2024 saw a 4% GMS decline but record revenue and strong profitability, with strategic pivots prioritizing long-term differentiation over short-term growth. Depop delivered standout growth, while investments in AI, loyalty, and marketing efficiency set the stage for improved performance in 2025.
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Leadership changes aim to drive innovation and growth, with a focus on quality, gifting, and AI-driven personalization. Strategic investments in search, buyer engagement, and monetization position the business for continued margin strength and market expansion.
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Etsy is focusing on surfacing unique products, enhancing customer experience, and leveraging GenAI for search and gifting. Initiatives like Gift Mode, loyalty programs, and physical gift cards aim to boost engagement and GMS. Investments in marketing and seller quality, along with a strong balance sheet, support ongoing growth.
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Revenue grew 4.1% year-over-year to $662M, with a 27.7% adjusted EBITDA margin, despite a 4.1% GMS decline. Depop delivered over 30% GMS growth, while foundational investments in app, search, and gifting aim to reignite growth amid macro headwinds.
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Etsy highlighted strong growth in sales, revenue, and EBITDA, driven by unique offerings and strategic focus on quality, gifting, and app experience. Investments in technology, international expansion, and loyalty programs are expected to fuel further growth, with a robust capital return policy in place.
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Etsy is shifting to a quality- and engagement-driven strategy, launching a new search algorithm and loyalty program, and focusing on app growth and mid-funnel marketing. Despite macro headwinds, the company sees vast market opportunities and is maintaining financial discipline while emphasizing its unique value proposition.
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Revenue grew 3% year-over-year to $648M, with adjusted EBITDA margin at 28% and GMS down 2.1%, but sequentially improving. Key initiatives in AI, loyalty, and marketing are driving engagement, while macro headwinds persist. CFO Rachel Glaser announced her retirement.
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Stockholders were welcomed and key board and executive members introduced. 2023 saw record revenue and a strong buyer base, but GMS growth slowed post-pandemic. All proposals, including director elections and the equity plan, were approved, with 2024 focused on brand growth and overcoming macroeconomic challenges.