[Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) This section details the company's unaudited condensed consolidated financial statements, accompanying notes, and management's discussion and analysis of financial performance and condition [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, highlighting a slight revenue increase to **$651.2 million** but a net loss of **$52.1 million** due to a **$101.7 million** goodwill impairment charge Consolidated Statement of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Revenue** | **$651.2** | **$646.0** | | **Gross Profit** | **$459.1** | **$458.8** | | **Asset Impairment Charge** | **$101.7** | **$0** | | **(Loss) Income from Operations** | **$(22.3)** | **$68.1** | | **Net (Loss) Income** | **$(52.1)** | **$63.0** | | **Diluted EPS** | **$(0.49)** | **$0.48** | Consolidated Balance Sheet Highlights (As of March 31, 2025 vs Dec 31, 2024) | Metric | As of March 31, 2025 (in millions) | As of December 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | **$1,110.0** | **$1,327.7** | | **Goodwill** | **$36.2** | **$137.1** | | **Total Assets** | **$2,120.8** | **$2,417.8** | | **Total Liabilities** | **$3,031.1** | **$3,176.6** | | **Total Stockholders' Deficit** | **$(910.3)** | **$(758.9)** | Consolidated Cash Flow Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | **$49.2** | **$69.0** | | **Net Cash used in Investing Activities** | **$(20.7)** | **$(25.1)** | | **Net Cash used in Financing Activities** | **$(204.8)** | **$(163.0)** | | **Net Decrease in Cash** | **$(162.0)** | **$(125.5)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies and specific financial items, including a **$101.7 million** goodwill impairment for Reverb and the formal agreement to sell Reverb for **$105.0 million** - On April 21, 2025, the company entered into an agreement to sell Reverb, its musical instrument marketplace, for a purchase price of **$105.0 million** in cash. The transaction is expected to close in the coming months[95](index=95&type=chunk) - A non-cash goodwill impairment charge of **$101.7 million** was recorded in Q1 2025 to write off goodwill in full for the Reverb reporting unit. This was triggered by the determination that a sale of the business was more likely than not[51](index=51&type=chunk)[53](index=53&type=chunk)[96](index=96&type=chunk) Revenue Disaggregation | Revenue Type | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Marketplace revenue | **$458.5** | **$467.0** | | Services revenue | **$192.7** | **$179.0** | | **Total Revenue** | **$651.2** | **$646.0** | - In Q1 2025, the company repurchased **3.717 million** shares of its common stock at an average price of **$50.90** per share. As of March 31, 2025, **$811.0 million** remained available for repurchase under the October 2024 program[84](index=84&type=chunk)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and cash flows, including key trends and factors impacting performance [Overview](index=24&type=section&id=MD%26A%20Overview) Etsy operates two-sided online marketplaces, with its primary focus on the Etsy marketplace for unique goods, alongside Depop for fashion resale, and has agreed to sell Reverb for **$105.0 million** - Etsy's strategy is focused on building a sustainable competitive advantage ('Right to Win'), growing the Etsy marketplace in core geographies, and leveraging its marketplace playbook at Etsy and Depop[103](index=103&type=chunk) - The company entered into an agreement on April 21, 2025, to sell its musical instrument marketplace, Reverb, for **$105.0 million** in cash[107](index=107&type=chunk) [Key Operating and Financial Metrics](index=25&type=section&id=MD%26A%20Key%20Operating%20and%20Financial%20Metrics) Consolidated Gross Merchandise Sales (GMS) decreased by **6.5%** year-over-year to **$2.8 billion**, primarily due to a decline in the Etsy marketplace GMS amid pressure on consumer discretionary spending, while total revenue grew **0.8%** to **$651.2 million** Key Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | GMS | **$2,793.3** | **$2,986.5** | **(6.5)%** | | Revenue | **$651.2** | **$646.0** | **0.8%** | | Revenue Take Rate | **23.3%** | **21.6%** | **+170 bps** | | Adjusted EBITDA | **$171.1** | **$167.9** | **1.9%** | | Active Sellers | **8.1** | **9.1** | **(11.3)%** | | Active Buyers | **94.8** | **96.4** | **(1.7)%** | - The decrease in GMS was primarily driven by the Etsy marketplace, reflecting continued pressure on consumer discretionary spending, a competitive retail environment, and changes in product development strategy that prioritized foundational investments[111](index=111&type=chunk) - Currency-neutral GMS declined by **5.7%** in Q1 2025, indicating that foreign exchange rates had a negative impact of **0.8%** on reported GMS[117](index=117&type=chunk) [Results of Operations](index=27&type=section&id=MD%26A%20Results%20of%20Operations) Total revenue increased by **0.8%** to **$651.2 million**, driven by Services revenue growth offsetting a Marketplace revenue decline, while operating expenses rose **23.2%** primarily due to a **$101.7 million** goodwill impairment charge for Reverb - Marketplace revenue decreased **1.8%** due to lower transaction fee revenue from a decline in Etsy marketplace GMS, partially offset by a new seller set-up fee and increased Depop payments revenue[118](index=118&type=chunk) - Services revenue grew **7.7%**, primarily driven by a **6.2%** increase in on-site advertising revenue due to a higher average price per click on Etsy Ads[119](index=119&type=chunk) - Marketing expenses decreased **1.5%** as the company reduced brand marketing spend (e.g., no prime time big game TV ad) and increased investment in performance marketing. Paid GMS grew to **23%** of overall GMS from **20%** YoY[121](index=121&type=chunk) - A **$101.7 million** asset impairment charge was recorded related to the goodwill of Reverb, significantly impacting operating income[124](index=124&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$867.7 million** in cash, cash equivalents, and short-term investments, plus an undrawn **$400.0 million** revolving credit facility, despite increased cash used in financing activities due to higher stock repurchases - As of March 31, 2025, the company had **$867.7 million** in cash, cash equivalents, and short-term investments, and access to a **$400.0 million** senior secured revolving credit facility[130](index=130&type=chunk) Historical Cash Flows | Activity | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Operating Activities | **$49.2** | **$69.0** | | Investing Activities | **$(20.7)** | **$(25.1)** | | Financing Activities | **$(204.8)** | **$(163.0)** | - The increase in cash used for financing activities was primarily due to an increase in stock repurchases during the quarter[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Management states that there have been no material changes to the company's quantitative and qualitative disclosures about market risks during the first quarter of 2025 compared to those disclosed in the 2024 Annual Report on Form 10-K - There were no material changes to market risk disclosures during the three months ended March 31, 2025[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management, including the CEO and CFO, evaluated and concluded that the disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[144](index=144&type=chunk) - No material changes to internal controls over financial reporting were identified during the first quarter of 2025[146](index=146&type=chunk) [Part II - Other Information](index=33&type=section&id=Part%20II%20-%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, and other disclosures relevant to the company's operations and financial health [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims and litigation in the ordinary course of business, with management believing the outcomes will not have a material adverse effect on its financial condition or operations - The company is regularly involved in various claims and litigation but does not currently expect the outcomes to have a material adverse effect on its business[83](index=83&type=chunk)[148](index=148&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section details the significant risks that could materially affect the company's business, financial condition, and operating results, encompassing operational, strategic, regulatory, and other investment-related factors [Operational Risks](index=33&type=section&id=Risk%20Factors%20-%20Operational%20Risks) Operational risks include fluctuating quarterly results due to macroeconomic conditions, the critical need to attract and retain buyers and sellers, reliance on third-party technology, and vulnerability to cyber-attacks and data breaches - Quarterly operating results may fluctuate due to factors beyond control, such as economic downturns, inflation, and geopolitical events, which can cause significant stock price fluctuations[149](index=149&type=chunk)[150](index=150&type=chunk) - The business depends on attracting and retaining active buyers and sellers; failure to do so could harm financial performance, especially as GMS is concentrated in the most active users[160](index=160&type=chunk)[164](index=164&type=chunk) - The company is vulnerable to technology disruptions, cyber-attacks, and security breaches, which could lead to service interruptions, data loss, and reputational damage. The Etsy marketplace relies substantially on Google Cloud[169](index=169&type=chunk)[180](index=180&type=chunk) [Strategic Risks](index=44&type=section&id=Risk%20Factors%20-%20Strategic%20Risks) Strategic risks encompass intense competition from diverse retailers, challenges in marketing effectiveness due to evolving digital landscapes, and potential failures in executing business strategy, including the announced sale of Reverb and future goodwill impairments - The company faces intense competition from large e-commerce marketplaces, national retailers, and social commerce channels, many of which have greater resources and offer features like free and fast shipping[217](index=217&type=chunk)[220](index=220&type=chunk)[222](index=222&type=chunk) - Marketing effectiveness is at risk from changes in search engine algorithms (e.g., Google), social media platform policies, and the rise of ad-blocking technologies[229](index=229&type=chunk)[230](index=230&type=chunk)[232](index=232&type=chunk) - The proposed sale of Reverb is subject to closing conditions and may not be completed as planned, which could result in expended management resources, transaction costs, and negative publicity[246](index=246&type=chunk)[247](index=247&type=chunk) - The company has incurred significant goodwill impairment charges for Reverb, Depop, and Elo7 in the past and may incur further charges, which would negatively impact operating results[248](index=248&type=chunk)[249](index=249&type=chunk) [Regulatory, Compliance, and Legal Risks](index=51&type=section&id=Risk%20Factors%20-%20Regulatory%2C%20Compliance%2C%20and%20Legal%20Risks) This section details risks from a complex and evolving global regulatory landscape, including potential liability for illegal items, high litigation costs, compliance with privacy and data protection laws, and challenges from evolving tax regimes and increased tech platform regulation - The company faces risk of liability for counterfeit, infringing, or unlawful items listed by sellers, as legal safe harbors like the DMCA are limited and subject to change[265](index=265&type=chunk)[266](index=266&type=chunk) - Compliance with complex and evolving global privacy and data protection regulations (e.g., GDPR, U.S. state laws) is costly and failure to comply could result in significant fines and reputational damage[273](index=273&type=chunk)[276](index=276&type=chunk) - Evolving tax laws, such as those imposing indirect tax collection on marketplaces and digital services taxes, create complexity and could adversely affect the business and its sellers[278](index=278&type=chunk)[279](index=279&type=chunk) - Increased regulation of technology companies, such as the E.U. Digital Services Act (DSA) and the U.K. Online Safety Act, may impose significant compliance costs and operational burdens on Etsy and its sellers[285](index=285&type=chunk)[287](index=287&type=chunk) [Other Risks](index=56&type=section&id=Risk%20Factors%20-%20Other%20Risks) This section covers other investment-related risks, including stock price volatility, potential dilution from future stock sales or convertible note conversions, discretionary stock repurchase programs, and anti-takeover provisions that could affect stock price - The price of the company's common stock has been and will likely continue to be volatile, which could subject the company to securities litigation[296](index=296&type=chunk) - Future sales of common stock or conversion of the outstanding convertible notes could result in additional dilution to stockholders and cause the stock price to decline[298](index=298&type=chunk)[299](index=299&type=chunk) - Anti-takeover provisions, such as a classified board and super-majority voting requirements, could delay or prevent a change in control and depress the stock price[307](index=307&type=chunk)[309](index=309&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity for the first quarter of 2025, including the repurchase of **3.717 million** shares for approximately **$189.2 million** and the remaining availability under the October 2024 program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (in thousands) | Average Price Paid per Share ($) | | :--- | :--- | :--- | | January 1 - 31 | **1,140** | **$53.57** | | February 1 - 28 | **1,090** | **$53.81** | | March 1 - 31 | **1,487** | **$46.71** | | **Total** | **3,717** | **$50.90** | - The June 2023 stock repurchase program was completed in Q1 2025. A new program authorized in October 2024 has no expiration date[315](index=315&type=chunk) [Item 3. Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[311](index=311&type=chunk) [Item 4. Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[312](index=312&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[314](index=314&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including management compensation plans, CEO and CFO certifications required under the Sarbanes-Oxley Act, and the Inline XBRL documents - Exhibits filed include amended executive severance and non-employee director compensation plans, forms of RSU agreements, and required CEO/CFO certifications[316](index=316&type=chunk)

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]

Highlights Etsy CEO Josh Silverman is talking with the Trump administration about 8 million Etsy sellers becoming “collateral damage” if the U.S. kills the small parcel exemption on duties for Chinese imports. Silverman also wants to change the 1099-K tax requirement threshold, which was lowered by the Biden administration. Silverman is seeking federal support for caregivers as well, since taking time away from their business to care for small children or aging relatives is the top concern of Etsy se ...

该行的预期调整在一定程度上参考了2020年第二季度因疫情封锁导致的经济放缓，但此次下调幅度相对 较小，特别是考虑到关税政策的反复变化。该行认为The Trade Desk受关税影响最为直接，而Criteo基于 效果的广告支出则具有一定的防御性。 该行认为，The Trade Desk因品牌广告和部分垂直领域受影响，2025财年营收预期将从28.79亿美元降至 27.55亿美元，目标价从70美元降至63美元;Criteo虽有业绩广告优势，但受零售媒体和旅游等垂直领域 影响，2025财年营收预期从11.68亿美元降至11.47亿美元，目标价从60美元降至47美元。 花旗近日发布北美互联网行业股票Q1前瞻报告，绩前调整了该行业覆盖范围内大多数公司的盈利预期 和目标价，以反映对关税影响以及由此导致的宏观环境走软的预期。 虽然该行覆盖的所有公司都在一定程度上受到影响，但总体而言，该行认为数字广告和电子商务行业受 影响最大，而网站建设商、针对中小企业的工具提供商以及在线约会领域受影响较小。 花旗预计第一季度财报或不会受到投资者太多关注，而第二季度和2025年全年展望及预期基本上将主要 由关税和宏观因素驱动，该行也会关注覆 ...

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]