Financial Performance - Consolidated GMS for Q1 2025 was $2.8 billion, down 6.5% year-over-year, with Etsy marketplace GMS at $2.3 billion, down 8.9% year-over-year[5]. - Consolidated revenue was $651.2 million, up 0.8% compared to Q1 2024, with a take rate of 23.3%, an increase of 170 basis points[5]. - Consolidated net loss was $52.1 million, reflecting an impairment charge of $101.7 million related to Reverb, with a net loss margin of approximately (8.0)%[5]. - Revenue for Q1 2025 was $651,176,000, a slight increase from $645,954,000 in Q1 2024, representing a growth of 0.2%[23]. - Net loss for Q1 2025 was $52,096,000 compared to a net income of $63,004,000 in Q1 2024, indicating a significant decline[23]. - Total operating expenses increased to $481,442,000 in Q1 2025 from $390,731,000 in Q1 2024, reflecting a rise of 23.3%[23]. - Adjusted EBITDA for Q1 2025 was $171,102,000, up from $167,935,000 in Q1 2024, resulting in an adjusted EBITDA margin of 26.3%[26]. - Currency-neutral Gross Merchandise Sales (GMS) declined by 5.7% in Q1 2025 compared to a decline of 4.1% in Q1 2024[25]. User Engagement and Buyer Activity - Active buyers decreased by 3.4% year-over-year to 88.5 million, while 6.5 million buyers were reactivated, representing a 2.1% increase from the prior year[5]. - The Etsy app achieved its highest ever share of GMS, with significant improvements in user engagement and new features driven by AI and machine learning[7]. - Depop experienced strong top-line growth, particularly in the U.S., with increased personalized email and push content leading to higher engagement[10]. Future Outlook - Etsy anticipates that consolidated Q2 2025 GMS will decline at a rate similar to Q1 2025 performance, with an Adjusted EBITDA margin guidance of approximately 25%[12]. - The company is focusing on enhancing the buyer experience through improved search capabilities and local shipping messaging in response to evolving tariff landscapes[8]. Asset and Liability Management - Total assets decreased from $2,417,782 thousand as of December 31, 2024, to $2,120,802 thousand as of March 31, 2025, representing a decline of approximately 12.3%[22]. - Current liabilities decreased from $665,113 thousand to $519,138 thousand, a reduction of about 21.9%[22]. - Total stockholders' deficit increased from $(758,866) thousand to $(910,299) thousand, indicating a decline in equity[22]. - Long-term debt remained relatively stable, increasing slightly from $2,288,083 thousand to $2,289,149 thousand[22]. - Cash and cash equivalents decreased from $811,178 thousand to $649,191 thousand, a decline of approximately 20%[22]. - Accounts payable decreased from $25,979 thousand to $17,396 thousand, a reduction of about 33%[22]. - Accrued expenses decreased from $374,947 thousand to $264,207 thousand, a decline of approximately 29.5%[22]. - Deferred revenue increased from $19,213 thousand to $22,297 thousand, an increase of about 15.5%[22]. - Total current assets decreased from $1,109,983 thousand to $1,032,727 thousand, a decline of approximately 6.9%[22]. - Total liabilities decreased from $3,176,648 thousand to $3,031,101 thousand, a reduction of about 4.6%[22]. Cash Flow and Financing Activities - Cash and cash equivalents at the end of Q1 2025 were $649,191,000, down from $788,837,000 at the end of Q1 2024, a decrease of 17.7%[24]. - The company reported an asset impairment charge of $101,703,000 in Q1 2025, which was not present in Q1 2024[23]. - Stock-based compensation expense for Q1 2025 was $62,108,000, compared to $70,683,000 in Q1 2024, showing a decrease of 12.1%[26]. - The weighted-average common shares outstanding for basic shares decreased to 107,084,000 in Q1 2025 from 118,440,000 in Q1 2024[23]. - The company experienced a net cash used in financing activities of $204,782,000 in Q1 2025, compared to $163,014,000 in Q1 2024, an increase of 25.6%[24]. Strategic Decisions - Etsy has signed a definitive agreement to sell Reverb, with the transaction expected to close in the coming months[9].

Core Insights - Etsy's first quarter 2025 financial results met expectations, showing solid adjusted EBITDA performance despite revenue pressure [2][3] - The company is leveraging AI and machine learning to enhance the app experience and drive user engagement [2] - Etsy's resilient two-sided marketplace model is positioned to navigate macroeconomic challenges [2] Financial Performance - Gross Merchandise Sales (GMS) for Q1 2025 was $2.8 billion, a decline of 6.5% year-over-year [4][5] - Revenue reached $651.2 million, up 0.8% compared to Q1 2024, with a take rate of 23.3%, an increase of 170 basis points [4][5] - Adjusted EBITDA was $171.1 million, with an adjusted EBITDA margin of 26.3%, slightly up from 26.0% in the previous year [4][5] Operational Highlights - Active sellers decreased by 11.3% year-over-year to 8,095, while active buyers fell by 3.4% to 88.5 million [4][5] - The number of habitual buyers dropped by 11.0% year-over-year to 6.2 million [5] - Depop experienced strong growth, achieving its highest GMS since acquisition in 2021 [5][12] Strategic Initiatives - Etsy is focusing on enhancing customer engagement through improved product experiences and strategic marketing initiatives [7][8] - The company has established a task force to address tariff changes and improve buyer and seller experiences [9] - Significant investments are planned to support GMS improvement and enhance the marketplace experience [3] Future Guidance - For Q2 2025, Etsy anticipates GMS to decline at a rate similar to Q1 2025, with an adjusted EBITDA margin around 25% [14]

Group 1: Trade Policy Concerns - Etsy CEO Josh Silverman is advocating against the elimination of the de minimis exemption for small parcel imports from China, which he claims would negatively impact 8 million Etsy sellers [1][2][3] - The de minimis exemption allows items valued at $800 or less to enter the U.S. without customs duties, and its removal could lead to increased costs for sellers if raw materials become more expensive [3][4] - Silverman warns that the lack of an organized system for collecting duties on small-value goods could result in significant delays and a potential backlog of parcels, severely affecting small commerce [5][6] Group 2: Tax Reporting Changes - Silverman is pushing for a change in the 1099-K tax reporting threshold, which was lowered from $20,000 to $600, arguing that this creates unnecessary friction for small business owners [7][8][9] - The current threshold requires tax filings even for minimal revenue, which could burden sellers who do not owe taxes [8][9] - There are ongoing congressional bills aimed at reverting the threshold to a higher amount, which Silverman supports [9] Group 3: Caregiver Support - Silverman highlights the need for federal support for caregivers, as many Etsy sellers face challenges balancing business and caregiving responsibilities [9][10][11] - A significant portion of Etsy's sellers are women, with 25% having children at home, indicating a strong need for support systems [10] - The lack of paid time off for solo entrepreneurs means that caregiving responsibilities can directly impact their business revenue [11]

Core Viewpoint - Citigroup has adjusted earnings expectations and target prices for most companies in the North American internet sector due to anticipated tariff impacts and a weakening macro environment [1] Online Advertising - Citigroup has lowered online advertising revenue forecasts due to macroeconomic uncertainties and expected spending cuts by advertisers, particularly in the second half of the year [2] - The Trade Desk is expected to be most directly affected by tariffs, with revenue projections for FY2025 reduced from $2.879 billion to $2.755 billion and target price cut from $70 to $63 [2] - Criteo's revenue forecast for FY2025 has been adjusted from $1.168 billion to $1.147 billion, with target price decreased from $60 to $47 [2] - IAC's target price has been lowered from $47.55 to $45, ZiffDavis from $52 to $35, and Outbrain from $5.9 to $4 [3] E-commerce - Consumer confidence is near historical lows, prompting a reduction in forecasts for discretionary e-commerce companies due to potential tariff impacts [4] - eBay is considered to have the strongest defense against tariffs, with FY2025 GMV expectations adjusted from $75.923 billion to $75.436 billion and target price from $80 to $79 [4] - Etsy's FY2025 GMS forecast has been lowered from $12.115 billion to $11.749 billion, with target price cut from $53 to $48 [4] - Wayfair's FY2025 revenue expectation has been reduced from $11.830 billion to $11.464 billion, with target price slightly increased from $28 to $30 [4] Website Builders - Website builders like GoDaddy and Wix.com are seen as having strong fundamentals despite potential pressures on small businesses from tariffs and economic slowdown [5] - GoDaddy's FY2025 revenue forecast has been adjusted from $4.934 billion to $4.888 billion, with target price cut from $260 to $234 [6] - Wix.com's FY2025 revenue expectation has been lowered from $1.989 billion to $1.963 billion, with target price reduced from $280 to $238 [6]

点击蓝字，关注我们 关税飓风下的电商突围战：高盛维持对亚马逊、Shopify以及Chewy的"买入"评级，因其业绩与 业务敞口更具增长韧性。 智通财经 APP 获悉，华尔街金融巨头高盛集团在最新发布的一份美国电商行业研究报告中，系统性 地分析了全球关税政策升级对美国电商行业的多维度冲击，重点聚焦终端需求变化与美国关税政策之 下的电商成本传导机制。高盛研究团队基于宏观经济模型、历史周期对比 (2007-2009 年金融危机参 照) 以及高频数据跟踪，预判 2025Q1 与 Q2 电商板块面临关税成本带来的盈利预期下行风险，但结构 性的投资机遇存在于未来消费者们愈发向服务性质的消费转移以及电商龙头平台的强大业绩韧性， 这些颇具弹性的电商股有望大幅跑赢美股大盘 —— 标普 500 指数。 密歇根大学消费者调查数据显示， 消费者信心指数创下自 2022 年 6 月以来的最低水平，消费者们对 一年后的通胀预期达到了 1981 年以来的最高水平 。纽约联储此前公布的 3 月消费者预期调查显示， 消费者们对未来财务状况的信心进一步恶化，认为自己家庭在一年后的财务状况将会更糟的受访者比 例上升至 30.0%，为自 2023 ...

Core Insights - Meta's Facebook remains influential globally, but usage among younger users is declining, with only 32% of U.S. teens using the platform in 2024, down from 71% in 2014 [1] - Facebook Marketplace, launched in 2016, has become a significant success for Meta, boasting 1.1 billion users across 70 countries and competing with platforms like eBay and Craigslist [1] Group 1: Marketplace Features and Advantages - Marketplace is described as "the flea market of the internet," facilitating a large volume of consumer-to-consumer transactions without listing fees, which is a key attraction for sellers [2] - The platform's local pickup option helps users avoid shipping costs, enhancing its appeal [2] - The resale market is booming, projected to reach $350 billion by 2027, positioning Marketplace favorably within this trend [2] Group 2: User Trust and Engagement - Younger buyers are attracted to Marketplace due to its affordability and sustainability, with trust being a significant factor as users' Facebook profiles provide a sense of security compared to anonymous platforms [3] - Marketplace is not a major direct revenue source for Meta but plays a crucial role in user engagement, which is valuable for advertisers [5] - Despite being one of the least monetized parts of Facebook, Marketplace helps demonstrate that younger users still log in, even if their activity is focused on buying and selling rather than traditional social engagement [5] Group 3: Strategic Partnerships and Revenue Projections - In January 2025, eBay partnered with Facebook Marketplace, allowing select eBay listings to appear on the platform, which is expected to generate an additional $1.6 billion in sales for eBay by the end of 2025 [4] - This partnership is anticipated to increase the number of buyers and sellers on Marketplace and potentially address some trust issues [4] - Facebook takes a 10% cut of sales made through its shipping service, although it does not charge listing fees [4]

Company and Industry Overview * **Company**: Etsy, Inc. (NASDAQ: ETSY) * **Industry**: E-commerce, Handmade and Vintage Goods Key Points 1. Shift in Focus to Engagement and Browsing * **Change**: Etsy is shifting its focus from driving Gross Merchandise Sales (GMS) conversion to improving overall platform health and engagement. * **Approach**: * Redesigning the search and discovery algorithm to prioritize quality over relevance. * Launching a loyalty program to increase frequency and loyalty. * Investing in the Etsy app to drive more traffic and improve the shopping experience. 2. Search and Discovery Algorithm Redesign * **Objective**: Improve the quality of search results and enhance the buyer experience. * **Changes**: * Incorporating quality metrics, such as seller and item quality scores, into the search algorithm. * Providing sellers with a dashboard to track their quality scores and make improvements. * Creating a virtuous cycle where sellers compete based on quality to earn higher search rankings. 3. Loyalty Program * **Purpose**: Increase frequency and loyalty among occasional buyers. * **Details**: * Invite-only beta program focusing on occasional buyers. * Members will receive exclusive deals, drops, and other benefits. * Aim to understand buyer behavior and test the economic sustainability of the program. 4. Etsy App * **Importance**: Drive more traffic and improve the shopping experience. * **Strategy**: * Introducing friction in the mobile web to encourage app downloads. * Prioritizing app experience in product development. * Leveraging mobile web to drive organic traffic and improve sales. 5. Marketing Strategy * **Focus**: Maximize the return on marketing spend. * **Approach**: * Investing in Google PLAs for measurable results. * Investing in brand advertising to increase awareness. * Targeting mid-funnel customers with generalized needs using Gen AI and social media platforms. 6. Market Opportunity * **TAM**: Etsy believes there is significant growth potential in various markets, including home furnishings, gifting, and other categories. * **Competitive Landscape**: Etsy views itself as a unique alternative to commoditized e-commerce and aims to capture a larger share of the market. 7. Macroeconomic Challenges * **Consumer Discretionary Spend**: Etsy acknowledges the challenges posed by the current economic environment but remains optimistic about its growth potential. * **Competitive Response**: Etsy focuses on differentiating itself through quality, unique products, and the value it offers to customers. 8. Regulatory Environment * **De Minimis Tax Regulations**: Etsy supports the de minimis exemption for cross-border shipping and advocates for targeted regulations to prevent abuse. 9. Gifting * **Growth**: Gifting GMV increased by 4% in the second quarter, driven by product improvements and marketing efforts. * **Opportunity**: Etsy sees significant growth potential in the gifting market, particularly in the US. 10. Leadership Transition * **CFO Retirement**: Etsy's CFO, Rachel Glaser, is retiring, and the company is actively searching for a replacement. 11. Seller Demographics * **Seller Composition**: Approximately 85% of Etsy sellers are women. * **Buyer Composition**: Approximately 80% of Etsy buyers are women. * **Strategy**: Etsy aims to attract more male buyers and sellers by leveraging male-centric media channels and showcasing products that appeal to men.

Etsy, Inc. (NASDAQ:ETSY) Goldman Sachs 2023 Communacopia & Technology Conference September 6, 2023 2:30 PM ET Company Participants Rachel Glaser - CFO Conference Call Participants Alexandra Steiger - Goldman Sachs Alexandra Steiger Great. So good morning, everyone. Thanks for joining us. My name is Alexandra Steiger, and I'm part of the U.S. Internet Research team at Goldman Sachs. We are very pleased to have Rachel Glaser, CFO of Etsy with us today. Good to see you, and welcome to our conference. Rachel G ...

Etsy, Inc. (NASDAQ:ETSY) Goldman Sachs Communacopia + Technology Conference 2022 September 14, 2022 1:45 PM ET Company Participants Rachel Glaser - CFO Conference Call Participants Alexandra Steiger - U.S. Internet Research team at Goldman Sachs Alexandra Steiger Great. I think we can get started. So good morning everyone. Thanks for joining us. My name is Alexandra Steiger. I’m part of the U.S. Internet Research team here at Goldman Sachs. We are very pleased to have Rachel Glaser as CFO of Etsy with us to ...

Summary of Etsy, Inc. Conference Call Company Overview - **Company**: Etsy, Inc. (NASDAQ:ETSY) - **Event**: Evercore ISI 2nd Annual Technology, Media & Telecom Conference 2022 - **Date**: September 7, 2022 Key Points Industry and Market Position - Etsy has grown to be approximately 2.5 times larger in Gross Merchandise Sales (GMS) compared to pre-COVID levels in 2019, with active buyers increasing from 46 million to 90 million during the pandemic [3][4] - The company has retained a significant portion of its pandemic gains, with 88 million active buyers reported in the most recent quarter, indicating strong customer loyalty despite the reopening of physical retail options [6][7] Performance Metrics - GMS per active buyer has increased slightly year-over-year, demonstrating that returning customers are spending as much or more than before [6] - The company anticipates a mid-single-digit decline in GMS for the third quarter compared to the previous year, influenced by macroeconomic factors such as inflation and geopolitical tensions [7][16] Consumer Behavior and Demand - Despite potential recessionary pressures, Etsy's performance has remained relatively stable, with a focus on discretionary spending [16] - The company emphasizes the unique product experience and customer satisfaction as key drivers for retaining buyers [9][17] Marketing and Brand Awareness - Etsy's brand awareness has significantly improved, with recognition growing internationally, including markets like Turkey where no marketing spend was made [9] - The company plans to enhance its marketing efforts to remind consumers of the diverse products available on Etsy, particularly during seasonal shopping periods [30] Growth Strategy - Etsy is focusing on improving user experience through better search algorithms, personalization, and reliability in delivery [28][32] - The company sees opportunities for growth in international markets, particularly in Germany and France, where penetration rates are significantly lower than in the U.S. [37] Financial Guidance and Margins - Etsy's core business maintains a healthy EBITDA margin of over 30%, with guidance indicating a consolidated margin of about 26% due to dilutive subsidiaries [20][21] - The company prioritizes disciplined investment strategies, focusing on high-return opportunities rather than merely achieving margin targets [22] Challenges and Opportunities - The company acknowledges the challenges posed by increased competition and changing consumer preferences but believes it is well-positioned to capitalize on the shift towards unique, personalized shopping experiences [25][40] - Etsy's capital-light business model allows for flexibility in responding to market conditions without the need for significant inventory investments [19] Conclusion - Etsy is positioned as a strong alternative to traditional e-commerce platforms, focusing on unique products and customer experiences. The company aims to leverage its brand awareness and improve user engagement to drive future growth [40][41]