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]