Core Insights - Etsy's long-time CEO, Josh Silverman, will step down by the end of the year, with Kruti Patel Goyal, the current president and chief growth officer, set to take over as CEO [1] - Goyal has over 10 years of experience at Etsy and previously led Depop, which Etsy acquired four years ago [2] Business Performance - Etsy has faced challenges in growth, with active buyers declining by 5% to 86.6 million year-over-year as of Q3 [3] - The number of sellers on Etsy decreased by 10.9% to 5.5 million compared to the previous year, and gross merchandise sales (GMS) fell by 2.4% to $2.4 billion in Q3 [4] - In contrast, Depop showed strong performance, with active sellers increasing by 40% to 3 million and active buyers rising by 38% to 6.6 million, while Depop's GMS surged by 39.4% to $292.1 million [4] Market Reaction - Following the announcement of the CEO transition, Etsy's shares dropped nearly 9% [4]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Shares of Etsy fell more than 9% in premarket trading on Wednesday after the e-commerce company announced that Chief Executive Josh Silverman will step down at the end of the year. Silverman will be s... ...

All right, quick mad dash here. Get you to an opening bell for a good old hump day here on this Wednesday. Etsy.>> Yeah. No, I I'm looking for signs of wherever the consumer might be weak. And Josh Silverman is stepping up to executive chair after eight years of being CEO.At the same time, we are seeing weakness in their earnings. Uh it was a not great miss. And I've got to tell you, David, Etsy is either you could say maybe the website's not that good.Uh or you could say, well, maybe people aren't buying a ...

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Financial Data and Key Metrics Changes - Consolidated GMS for the third quarter was $2.72 billion, exceeding guidance, with a year-over-year decline of 2.4% for Etsy Marketplace GMS [22][23] - Consolidated revenue grew 6.1% year-over-year to $678 million, with adjusted EBITDA at $172 million, representing a margin of 25.4% [23][30] - Active buyer count was 86.6 million, down 5% year-over-year, but new and reactivated buyers totaled 11.4 million for the quarter [25][26] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS was down 2.4% year-over-year, while Depop's GMS grew 39.4% year-over-year to $292 million [10][23] - Depop's third quarter growth accelerated by 400 basis points sequentially, driven by new user growth and improved buyer conversion [10][11] - Services revenue grew 12.7% year-over-year, primarily from on-site ad revenue at both Etsy and Depop [29] Market Data and Key Metrics Changes - GMS per active buyer was stable at $121, with encouraging month-by-month improvements in purchase frequency and average item values [25][26] - The app's contribution to total GMS increased to 46%, with app users visiting five times more often than non-app users [28][27] - Strong performance was noted in vintage home and living, jewelry above $100, and wedding rings, with GMS comparisons improving across most top categories [26] Company Strategy and Development Direction - The company is focusing on four strategic priorities: enhancing shopper discovery, deepening loyalty, amplifying seller creativity, and improving the overall shopping experience [12][18] - A partnership with OpenAI aims to leverage AI for personalized shopping experiences, integrating Etsy listings into ChatGPT for seamless transactions [13][40] - The company is reallocating marketing spend towards upper funnel channels like social video and streaming to enhance engagement [15][32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about consumer spending, anticipating a stable macro environment for the holiday season [33][55] - The leadership transition is seen as timely, with new CEO Kruti Patel Goyal expected to drive growth through a focus on creativity and human connection [5][12] - The company expects Q4 consolidated GMS to be between $3.5 billion and $3.65 billion, indicating further sequential improvement [33] Other Important Information - The company completed the sale of Reverb, which impacted year-over-year comparisons [22] - Free cash flow exceeded $200 million in the quarter, with $1.6 billion in cash and investments at the end of the quarter [33] - The company repurchased 2.1 million shares at a cost of approximately $120 million, reducing share count by 17% since December 2023 [33] Q&A Session Summary Question: About the OpenAI partnership and its integration - Management highlighted the excitement around the OpenAI partnership, emphasizing the unique opportunity it presents for Etsy in agentic commerce [38][39] - The integration allows users to purchase items directly through ChatGPT, with Etsy covering the transaction fee for now [40][41] Question: Engagement improvements on the app - Management discussed meaningful investments in reshaping the app's home screen to enhance discovery and engagement, leading to higher user interaction [44][46] Question: Fourth quarter guidance and holiday opportunities - Management indicated uncertainty in consumer health but expects continued progress in initiatives, with a strong holiday campaign planned [53][55][56] Question: Balancing traffic from GenAI platforms versus direct mobile - Management believes that both channels can coexist and benefit Etsy, enhancing brand consideration and app usage [78][81] Question: Investments planned for Depop and margin compression - Management confirmed that the brand campaign for Depop is a long-term investment aimed at expanding awareness, which may compress margins in the near term [79][83]

Etsy (NasdaqGS:ETSY) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsLanny Baker - CFOYgal Arounian - Director of Internet Equity ResearchEric Sheridan - Partner and Managing DirectorRobert Coolbrith - VP of Internet Equity ResearchBryan Smilek - Equity Research AssociateDeb Wasser - VP of Investor RelationsKruti Patel Goyal - President and Chief Growth OfficerYoussef Squali - Managing Director and Head of Internet and Digital Media Research GroupSteve Forbes - Senior Managing Directo ...

Financial Data and Key Metrics Changes - Consolidated GMS for Q3 2025 was $2.72 billion, exceeding guidance, with a year-over-year growth of 0.9% when excluding Reverb [26] - Consolidated revenue grew 6.1% year over year to $678 million, with adjusted EBITDA at $172 million, representing a margin of 25.4% [27][36] - Etsy Marketplace GMS declined 2.4% year over year, but improved by 300 basis points sequentially from Q2 to Q3 [27][28] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS was $2.43 billion, down 2.4% year over year, while Depop's GMS grew 39.4% year over year to $292 million [14][27] - Services revenue increased by 12.7% year over year, driven by growth in on-site ad revenue at both Etsy and Depop [32] - Etsy Ads experienced meaningful growth, supported by model enhancements that optimized seller budget pacing and improved ad quality [33] Market Data and Key Metrics Changes - Active buyer count was 86.6 million, down 5% year over year, but new and reactivated buyers totaled 11.4 million for the quarter [29] - GMS per active buyer was stable at $1.21, with encouraging month-by-month improvements in purchase frequency and average item values [30] - The app's contribution to total GMS increased to 46%, with app users visiting five times more often than non-app users [31] Company Strategy and Development Direction - The company is focusing on four strategic priorities: enhancing customer discovery, deepening loyalty, amplifying seller creativity, and leveraging AI for personalization [17][22] - A partnership with OpenAI aims to integrate Etsy listings into ChatGPT, enhancing the shopping experience and driving incremental growth [19][45] - The company is reallocating marketing spend towards upper funnel channels to spark engagement and inspiration, particularly during the holiday season [20][62] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, anticipating a stable macro environment for Q4 [36][60] - The company expects Q4 consolidated GMS to be between $3.5 and $3.65 billion, indicating further sequential improvement [37] - Management highlighted the importance of maintaining profitability while also being willing to invest in growth opportunities, particularly for Depop [65][90] Other Important Information - The company completed the sale of Reverb on June 2, impacting year-over-year comparisons [26] - The transition in leadership from Josh Silverman to Kruti Patel Goyal is set to take place on January 1, 2026, with a focus on continuing growth and innovation [9][10] Q&A Session Summary Question: About the OpenAI partnership and its integration - Management highlighted the excitement around the OpenAI partnership, emphasizing that Etsy listings will be integrated into ChatGPT, allowing seamless transactions through Etsy's payment system [41][45] Question: Engagement improvements on the app - Management discussed meaningful investments in reshaping the app's home screen to enhance discovery, resulting in increased engagement metrics [50][52] Question: Fourth quarter guidance and holiday opportunities - Management noted that while consumer outlook remains uncertain, they expect continued progress in initiatives and a strong holiday campaign focused on the unique value of Etsy [60][62] Question: Balancing traffic from AI platforms versus direct mobile - Management indicated that both channels can coexist and benefit Etsy, with agentic commerce providing additional exposure to potential buyers [87][89] Question: Investments planned for Depop and margin compression - Management confirmed that the brand campaign for Depop is a long-term investment aimed at expanding awareness, which may compress margins in the near term but is expected to yield significant long-term benefits [90][91]

Etsy (ETSY) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +21.15%. A quarter ago, it was expected that this online crafts marketplace would post earnings of $0.54 per share when it actually produced earnings of $0.25, delivering a surprise of -53.7%.Over the last four quarters, the ...

OCTOBER 29, 2025 Q3 2025 Financial Results Forward-looking Statements 2 This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to statements relating to: our financial guidance for the fourth quarter of 2025 and underlying assumptions; the impact of AI, ML, and LLMs; the impact of agentic search and our partnership with OpenAI; our product development investments, strategic priorities, and marketing init ...