Etsy(ETSY)2025-02-19 14:16Financial Performance - Etsy's sellers generated 10.9 billion (86.4% of total GMS) and Reverb and Depop generating approximately 788.9 million (6.3%) respectively[32]. - Etsy's GMS declined 6% in 2024 to 550 billion online market opportunity in relevant retail categories, with its GMS representing approximately 2% of that market[54]. - In 2024, Etsy's active buyers averaged three purchase days per year, indicating a significant opportunity to increase purchase frequency[48]. - GMS (Gross Merchandise Sales) per active buyer declined by 3.5% from 2023 to 2024, indicating challenges in buyer frequency and average order value[121]. Seller and Buyer Engagement - As of December 31, 2024, Etsy connected 8.1 million active sellers to 95.5 million active buyers, with 89.6 million buyers and 5.6 million sellers active on the Etsy marketplace[33][38]. - Approximately 30% of the 2024 GMS was derived from custom or made-to-order merchandise, highlighting the unique offerings of Etsy's sellers[36]. - The top six retail categories on the Etsy marketplace in 2024 accounted for approximately 200 or more and purchasing on six or more days, comprised 7% of active buyers and accounted for 41% of 2024 GMS[132]. Marketing and Advertising - Etsy's performance marketing accounted for 21% of GMS in 2024, with significant investments in paid social marketing increasing from 17% to 22% of performance marketing spend[85][86]. - Revenue from the Offsite Ads program offset approximately 31% of the Etsy marketplace's performance marketing spend in 2024[87]. - In 2024, Etsy spent approximately 172 million on brand marketing[84]. - Depop's marketing strategies in 2024 included a focus on performance marketing channels, resulting in its best-ever year in paid GMS[92]. Technology and Innovation - Etsy's strategy includes enhancing search and discovery through AI and machine learning to improve buyer experience and drive sales[37]. - Etsy's investment in technology infrastructure includes significant enhancements in machine learning and AI to improve customer experiences and streamline operations[78]. - The Etsy Search Visibility Page launched in mid-2024, providing sellers with actionable tips to improve their search rankings[104]. Sustainability and Social Responsibility - Etsy aims for a 50% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030, with a 33% reduction achieved as of 2024[151]. - Shipping emissions accounted for 54% of reported Scope 3 emissions in 2024, with a 12% intensity reduction relative to 2023[156]. - Etsy invested 5.6 million in philanthropic donations to support equal access to economic opportunities[148]. - The company offset its reported Scope 1, 2, and 3 emissions in 2024 by investing in 478,566 verified emissions reductions (VERs)[161]. Employee Engagement and Diversity - Engagement scores from employee surveys showed 65% for Etsy, 66% for Reverb, and 76% for Depop, indicating varying levels of employee engagement across the brands[109]. - As of December 31, 2024, 51.5% of Etsy's global employees identified as women or marginalized genders, and 14.9% of U.S. employees identified as Black, Latinx, or Native American[187]. - 35.7% of all global employees identified as women or marginalized genders as of December 31, 2024[193]. - 20.2% of U.S. employees identified as Black, Latinx, Native American, Asian, and two or more races as of December 31, 2024[193]. - Etsy is committed to enhancing its supply chain diversity and transparency, aiming for a more resilient supply chain[212]. Market Opportunities - In 2024, Reverb's GMS was 24 billion, with Reverb holding less than 5% market share, indicating significant potential for market share gains[67]. - Depop's Gross Merchandise Sales (GMS) reached 350 billion by 2028, with the U.S. resale market expected to reach about $44 billion[73].