Core Insights - The Udemy course "Print on Demand with Etsy for Passive Income 2025" has nearly 30,000 students from over 180 countries and boasts a 4.7-star average rating, aimed at empowering aspiring entrepreneurs to create profitable online businesses [1][8] Course Overview - The course is designed for both beginners and experienced creators, providing a comprehensive guide to establishing an automated Etsy store using the print-on-demand model [2] - Students learn to utilize advanced AI tools like ChatGPT and MidJourney for creating appealing designs, alongside strategies for marketing, SEO, and scaling their stores for passive income [2][4] Educational Philosophy - The course's goal is to make passive income creation accessible and enjoyable for anyone with creative potential, with the success of students worldwide being a significant motivator for the course creator [3] Curriculum and Resources - The curriculum includes practical tools and step-by-step instructions, along with exclusive downloads and ongoing updates to keep students competitive in a fast-changing market [4] - Participants also have access to free resources at Arttuts.co, including infographics, cheat sheets, and mini-courses to support their entrepreneurial journey [6] Complementary Materials - The course is complemented by the Amazon bestseller "Artist to Entrepreneur: Turn Your Hobby Into a Six-Figure Business," which provides deeper insights into monetizing artistic talents [5] Community and Engagement - Aspiring entrepreneurs are encouraged to join the growing community by enrolling in the course, with additional resources available at Arttuts.co [7] - Voist Enterprises LLC, the company behind the course, has a vibrant community with over 100,000 Instagram followers and 50,000 YouTube subscribers, focusing on making creativity profitable [8][9]

Core Viewpoint - Etsy, Inc. has announced the pricing of $650 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $50 million, aimed at raising capital for share repurchases and general corporate purposes [1][5]. Group 1: Notes Details - The notes will have a 1.00% annual interest rate, maturing on June 15, 2030, and will be convertible into cash, shares, or a combination at Etsy's discretion [2]. - The initial conversion rate is set at 11.6570 shares per $1,000 principal amount, translating to an initial conversion price of approximately $85.79 per share, which is a 42.5% premium over the last reported sale price on June 11, 2025 [2]. - Etsy can redeem the notes for cash starting June 20, 2028, if the stock price meets certain conditions [3]. Group 2: Use of Proceeds - Etsy estimates net proceeds from the offering to be approximately $639.3 million, or $688.5 million if the additional notes option is fully exercised, with $150 million allocated for share repurchases and the remainder for general corporate purposes [5][7]. - Concurrently, Etsy plans to repurchase shares at a price of $60.20, which was the last reported sale price on June 11, 2025 [7]. Group 3: Company Overview - Etsy operates two-sided online marketplaces connecting buyers and sellers globally, with a mission to "Keep Commerce Human" [9]. - The company also owns the fashion resale marketplace Depop, benefiting from shared expertise across its platforms [10].

Core Viewpoint - Etsy, Inc. plans to offer $650 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $50 million, subject to market conditions [1][2] Group 1: Offering Details - The notes will be unsecured obligations of Etsy, accruing interest payable semiannually, and will be convertible into cash, shares of common stock, or a combination of both at Etsy's discretion [2] - Etsy expects to use up to $175 million of the net proceeds from the offering to repurchase its common stock, with the remainder allocated for general corporate purposes, including potential debt repayment [2][4] Group 2: Market Impact - The concurrent repurchase of shares may influence the market price of Etsy's common stock and the notes, potentially resulting in a higher effective conversion price for the notes [4] Group 3: Company Overview - Etsy operates two-sided online marketplaces connecting millions of buyers and sellers, with a mission to "Keep Commerce Human" [6] - The primary marketplace, Etsy.com, is known for unique and creative goods, while the company also owns the fashion resale marketplace Depop [7]

Core Viewpoint - Etsy's shares have increased by approximately 24.7% over the past month, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Earnings Estimates - Estimates revision for Etsy has remained flat over the past month, indicating no significant changes in analyst expectations [2] VGM Scores - Etsy holds a Growth Score of A, a Momentum Score of C, and a Value Score of C, resulting in an aggregate VGM Score of B, which is relevant for investors not focused on a single strategy [3] Outlook - Etsy has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4] Industry Performance - Etsy is part of the Zacks Internet - Commerce industry, where Booking Holdings has seen a gain of 7.9% over the past month, reporting revenues of $4.76 billion for the last quarter, reflecting a year-over-year increase of 7.9% [5] - For the current quarter, Booking Holdings is projected to report earnings of $49.93 per share, indicating a year-over-year change of +19.2%, with a Zacks Consensus Estimate revision of +2% over the last 30 days [6]

Core Insights - Etsy is a global e-commerce marketplace with nearly 90 million active buyers, 5.5 million sellers, and over $11 billion in gross merchandise sales (GMS) [3] Group 1: Company Overview - Since Josh Silverman became CEO in 2017, Etsy has grown significantly, increasing GMS from approximately $2 billion to over $11 billion, and revenue from less than $400 million to a more profitable status [4] Group 2: Strategic Priorities - The main focus for Etsy moving forward is to achieve consistent growth, addressing current market challenges and leveraging its expanded marketplace [3][4]

Financial Data and Key Metrics Changes - Etsy reported over $11 billion in gross merchandise sales (GMS) and over $2.5 billion in revenue, with $750 million in free cash flow, showing significant growth from $2 billion in GMS and less than $400 million in revenue when the CEO joined in 2017 [5][6][11] - The company has retained nearly all of the buyers and GMS gained during the pandemic, with 88 million active buyers at the end of the previous year [11][12] Business Line Data and Key Metrics Changes - The core Etsy business has high operating margins, while the overall corporate average is diluted by lower margins from Depop and Reverb, which are being consolidated [77][82] - The company has maintained strong margin discipline despite GMS pressures, with gross margins expected to remain in the low 70% range [76][80] Market Data and Key Metrics Changes - Etsy's marketplace supports approximately 90 million active buyers and 5.5 million sellers, indicating a robust community [3] - The company has a significant opportunity to grow in its most penetrated markets, with one out of three women in the US and UK having purchased from Etsy in the last year [68][69] Company Strategy and Development Direction - Etsy aims to enhance personalization and browsing experience on its platform, focusing on making the site more app-based and improving product discovery [14][46] - The company is investing in local search and cross-border shipping to drive growth in international markets, particularly in Europe [73] Management's Comments on Operating Environment and Future Outlook - Management noted that while discretionary purchases have been under pressure, Etsy has not seen significant market diversion due to economic conditions [22] - The company is optimistic about improving year-over-year comparisons in GMS as the year progresses, citing easier comparisons in the second half of the year [16] Other Important Information - Etsy has a proactive approach to managing tariff impacts, with a focus on local sourcing and flexibility within its seller community [24][25] - The company has about $800 million remaining on its current share repurchase authorization, indicating strong free cash flow generation [85] Q&A Session Summary Question: How does Etsy plan to improve GMS growth? - Management discussed the importance of improving product experience and infrastructure, which is expected to drive GMS growth in the coming quarters [19][20] Question: What is the impact of tariffs on Etsy's business? - Management indicated that Etsy's seller community is resilient and that the company is actively informing sellers about tariff changes, while also highlighting that only about 1% of GMS comes from US buyers purchasing from sellers in China [27][28] Question: How does Etsy view its competition and market dynamics? - Management acknowledged the dynamic nature of the market and emphasized that Etsy's value proposition would strengthen if tariffs against China remain in place [36] Question: What are the expectations for margins in the upcoming year? - Management confirmed that gross margins are expected to remain in the low 70% range, with continued cost discipline being a priority [76][80] Question: How does Etsy plan to engage lapsed users? - Management highlighted the opportunity to re-engage the 100 million lapsed users who have previously shopped on Etsy, focusing on reminding them of the unique offerings available [69][70]

Core Insights - Etsy is a leading two-sided marketplace with approximately 95 million active buyers and over 100 million listings from more than 8 million active sellers, focusing on unique creative and handmade goods [1] - The company is projected to generate $12 billion in Gross Merchandise Sales (GMS) for the year, with adjusted EBITDA margins of 26% and free cash flow of $600 million [2] Company Overview - Josh Silverman has been the CEO of Etsy since May 2017, with a background that includes roles at American Express, Skype, shopping.com, and co-founding Evite [2] - Lanny Baker, the CFO, joined Etsy earlier this year and has held previous positions at Eventbrite, Yelp, ZipRealty, and Monster Worldwide [2] Market Outlook - The company is addressing macroeconomic volatility and uncertainty, with a focus on consumer confidence and expectations for stable to slightly improved GMS trends in Q2 compared to a negative 6% in Q1 [6]

Summary of Etsy (ETSY) FY Conference Call - May 13, 2025 Company Overview - Etsy is a leading two-sided marketplace with approximately 95 million active buyers and over 100 million listings from more than 8 million active sellers, primarily focused on unique, creative, and handmade goods [2][2] - Estimated to generate $12 billion in Gross Merchandise Sales (GMS) for the year, with 26% adjusted EBITDA margins and $600 million in free cash flow [2][2] Macro Environment and Consumer Trends - The macro environment remains volatile, but Etsy has not observed significant changes in consumer spending despite market fluctuations [6][6] - Etsy experienced substantial growth during the pandemic, with GMS increasing from $4.9 billion pre-pandemic to nearly $11 billion in 2024 [5][5] - The company has shown resilience against supply shocks and inflation, with sellers not passing on price increases as seen in other markets [7][8] Competitive Landscape - The e-commerce market is highly competitive, with major players like Amazon and Walmart actively participating [11][11] - Etsy is focusing on local sellers to mitigate tariff impacts, with over 90% of supplies sourced domestically [16][16][20][20] - The advertising market remains strong, and Etsy is enhancing its marketing technology to improve performance [12][12] Growth Strategies - Etsy is recalibrating its strategy to balance near-term conversions with long-term initiatives, particularly focusing on app development and personalized experiences [24][24][41][41] - The company has shifted resources to improve the app experience, with 44.5% of GMS now coming from app purchases [38][38] - Emphasis on quality and personalization through a new search engine architecture that prioritizes customer experience [30][30] Advertising and Revenue Growth - Etsy has seen growth in revenue despite GMS declines, primarily through Etsy Payments and Etsy Ads, which enhance seller profitability [57][57][58][58] - The company is exploring off-site ads as a cooperative advertising program to further drive sales for sellers [62][62] Financial Performance and Profitability - Etsy has maintained a strong take rate and gross margins, with expectations for continued profitability in 2025 [65][65][76][76] - The divestiture of Reverb is expected to improve overall profit margins for Etsy [71][71][73][73] Future Outlook - Etsy's unique marketplace model positions it as a valuable alternative in a consolidating e-commerce landscape [78][78] - The company is optimistic about its growth potential, leveraging its distinct offerings to attract consumers seeking alternatives to traditional e-commerce [78][78]

Core Viewpoint - Shopify and Etsy are positioned as strong players in the e-commerce industry, with both companies expected to benefit from significant market growth projected to reach $21.22 trillion by 2030, growing at a compound annual growth rate of 15.8% from 2025 to 2030 [2] Group 1: Shopify (SHOP) - Shopify's Merchant Solutions generated $1.74 billion in revenue in Q1 2025, accounting for 73.7% of total revenues, driven by user-friendly tools like Shop Pay and Shopify Pay Instalments [3][5] - Shop Pay processed $22 billion in Gross Merchandise Value in Q1 2025, reflecting a 57% year-over-year increase, with adoption by major brands enhancing Shopify's portfolio [4] - Shopify is investing in AI-driven tools to improve customer engagement and streamline operations, with partnerships including TikTok, Amazon, and PayPal expected to expand its merchant base [5] Group 2: Etsy (ETSY) - Etsy is leveraging AI for enhanced personalization and has seen strong mobile app performance, with the app accounting for 44.5% of total Gross Merchandise Sales in Q1 2025 [6][7] - The introduction of an AI-powered discovery feature in April 2025 allows shoppers to browse curated collections, enhancing the shopping experience [8] - Etsy's subsidiary, Depop, is contributing significantly to growth, particularly in the U.S. market, with strong performance in gifting categories during seasonal events [10] Group 3: Price Performance and Valuation - Year-to-date, Shopify and Etsy shares have declined by 13.7% and 11.3%, respectively, due to a challenging macroeconomic environment [12] - Shopify shares are currently overvalued with a Value Score of F, while Etsy shares are considered cheap with a Value Score of B, trading at 10.34X and 1.75X forward Price/Sales, respectively [15] - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.44 per share, indicating a 10.77% year-over-year increase, while Etsy's estimate is $1.77 per share, reflecting a 24.68% year-over-year decline [17]

Core Viewpoint - Etsy is facing significant challenges in the e-commerce marketplace, with declining sales and a loss of investor confidence following disappointing earnings reports [1][2][4]. Group 1: Financial Performance - Etsy's gross merchandise sales (GMS) fell by 6.5% to $2.8 billion, continuing a trend of declining business [5]. - Active sellers decreased by 11.3% to 8.1 million, with a notable drop of 23% in active sellers on the Etsy marketplace [5]. - The company's take rate increased to 23.3% in Q1 2025 from 21.6% in Q1 2024 and 17.8% in 2022, marking a 31% rise over three years [12][13]. Group 2: Acquisition Strategy - Etsy's acquisition of Reverb in 2019 initiated a "House of Brands" strategy, but the company has since sold Reverb and taken significant impairment charges [6][9]. - The company incurred a $1 billion impairment on the value of Depop and Elo7 in 2022, indicating poor performance of acquired brands [9]. - Despite Depop's GMS growth of 32% in 2024, the overall acquisition strategy has been deemed a failure, distracting from the core business [10]. Group 3: Seller Dynamics - A significant exodus of sellers is evident, with a 23% decline over the past year, which poses a risk to the marketplace's viability [11]. - The increase in seller fees has contributed to the decline in sellers, as there has been no corresponding increase in sales [12][13]. - Concerns have been raised about brand dilution due to the introduction of non-handmade goods, which may compromise Etsy's core identity [14]. Group 4: Future Prospects - For Etsy to recover, it must return to GMS growth and increase active sellers, addressing structural problems in the business [15]. - The company is seen as a potential target for activist investors, with Elliott Management owning 13% of the company but struggling to effect change [16]. - A change in management or a strategic partnership may be necessary for a turnaround, as the brand's relevance continues to decline [18].