Etsy is leveraging artificial intelligence to reignite growth across its platform, a decision that has caused significant volatility in its stock price. Etsy Stock price surges 12% after AI deal. Analysts say enthusiasm overdone; stock plummets 11% on Sept. 30. Etsy promises innovations for product discoverability. On Monday, OpenAI announced a partnership with Etsy, a business-to-customer global online marketplace. The deal enables U.S. ChatGPT users to shop directly with Etsy  (ETSY) sellers in the ...

Accessibility StatementSkip Navigation BROOKLYN, N.Y., Sept. 29, 2025 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced plans to transfer the listing of its Common Stock ("Common Stock") to the New York Stock Exchange ("NYSE") from the Nasdaq Stock Market LLC ("Nasdaq"). Etsy expects the listing of its Common Stock on Nasdaq to cease on October 10, 2025, and the listing ...

Core Viewpoint - Etsy, Inc. has announced the appointment of Rafe Colburn as Chief Product and Technology Officer, effective September 8, 2025, following the departure of Nick Daniel [1][2][3] Company Leadership Changes - Rafe Colburn will expand his role from Chief Technology Officer to Chief Product and Technology Officer, overseeing product and engineering organizations for the Etsy marketplace [1] - Nick Daniel, the outgoing Chief Product Officer, will leave Etsy on September 5, 2025, but will remain in an advisory role until October [2] Leadership Insights - Kruti Patel Goyal, Etsy's President and Chief Growth Officer, expressed confidence in Colburn's ability to enhance user experiences and leverage technology for growth [3] - Colburn emphasized the unique aspects of Etsy's marketplace and the potential to utilize AI and emerging technologies to improve the shopping experience [3] Background of Rafe Colburn - Colburn has a history of leadership in technology and product roles, previously serving as Chief Product and Technology Officer at Depop and Vice President of Engineering at Etsy [4][5] - His experience includes establishing Etsy's Data Engineering team and overseeing various engineering teams related to payments, compliance, and safety [5][6] Company Overview - Etsy operates two-sided online marketplaces connecting buyers and sellers, with a mission to "Keep Commerce Human" [7][8] - The company was founded in 2005 and is headquartered in Brooklyn, New York, also owning the fashion resale marketplace Depop [8]

Core Insights - Etsy reported second-quarter 2025 earnings of 25 cents per share, missing the Zacks Consensus Estimate by 53.7% and decreasing 39% year over year [1][8] - Revenues for the second quarter of 2025 increased 3.8% year over year to $672.7 million, exceeding the Zacks Consensus Estimate by 3.8%, driven by strong on-site advertising performance and contributions from Depop [1][8] Financial Performance - Marketplace revenues were $468.2 million, accounting for 69.6% of total revenues, down 0.5% year over year, primarily due to a 5.2% decline in transaction fee revenues [3] - Services revenues reached $204.5 million, up 15.3% year over year, driven by a 12.7% increase in on-site advertising revenues [4] - Consolidated Gross Merchandise Sales (GMS) totaled $2.8 billion, down 4.8% year over year, but surpassed the Zacks Consensus Estimate by 1.23% [6][8] User Metrics - The total number of active buyers decreased 4.6% year over year to 87.3 million, while the active seller base fell 7.8% to 8.1 million [5] - Etsy acquired 4.8 million new buyers in the quarter, with a record 6.5 million reactivated buyers, reflecting solid momentum in buyer reactivation [4][5][8] Operating Expenses - Total operating expenses were $402.7 million, up 2.3% year over year, but as a percentage of revenues, it contracted 90 basis points to 59.9% [7] - Marketing expenses increased 15.9% year over year to $212.1 million, while product development expenses decreased 2.3% to $111.9 million [9] Balance Sheet - As of June 30, 2025, cash and cash equivalents totaled $1.2 billion, up from $649.2 million at the end of the previous quarter [11] - Long-term debt increased to $3 billion from $2.3 billion in the prior quarter [11] Future Guidance - For the third quarter of 2025, Etsy anticipates a take rate of 24.5% and projects consolidated GMS to be between $2.6 billion and $2.7 billion [12]

Core Insights - Etsy, Inc. reported its second quarter results for 2025, highlighting a focus on strengthening customer relationships and enhancing buyer engagement through improved shopping experiences and personalized marketing [2][3][5] Financial Performance - Gross Merchandise Sales (GMS) for Q2 2025 was $2.8 billion, a decrease of 4.8% year-over-year, while revenue increased by 3.8% to $672.7 million [6][7] - The take rate improved to 24.0%, up from 22.0% in the previous year, driven by enhanced Etsy Ads revenue [6][7] - Net income for the quarter was $28.8 million, down from $53.0 million year-over-year, primarily due to a non-cash foreign exchange loss [6][7] - Adjusted EBITDA was $169.0 million, with a margin of 25.1%, reflecting a decline from the previous year [6][7][25] Strategic Initiatives - The company is prioritizing GMS growth through four strategic initiatives: enhancing shopper discovery, improving machine learning for content matching, retaining valuable customers, and amplifying the unique human connection of Etsy [10] - Etsy completed the sale of Reverb on June 2, 2025, which contributed $153.0 million to GMS and $17.6 million to revenue for the first two months of Q2 2025 [3][6] Market Trends - Depop, another marketplace owned by Etsy, reported a GMS of $249.6 million for Q2 2025, marking a 35.3% year-over-year growth [5] - Active buyers decreased by 4.6% year-over-year to 87.3 million, although the company reactivated 6.5 million buyers during the quarter [6][7] Cash Position and Investments - Etsy ended Q2 2025 with $1.5 billion in cash and cash equivalents, following a successful convertible notes offering that raised approximately $700 million [6][7] - The company repurchased approximately $335 million of its stock during the quarter, reflecting confidence in long-term growth opportunities [6][7] Future Guidance - For Q3 2025, Etsy expects GMS to be between $2.6 billion and $2.7 billion, with a take rate of approximately 24.5% and an adjusted EBITDA margin around 25% [9][10]

Core Viewpoint - Etsy, Inc. has announced the pricing of $650 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $50 million, aimed at raising capital for share repurchases and general corporate purposes [1][5]. Group 1: Notes Details - The notes will have a 1.00% annual interest rate, maturing on June 15, 2030, and will be convertible into cash, shares, or a combination at Etsy's discretion [2]. - The initial conversion rate is set at 11.6570 shares per $1,000 principal amount, translating to an initial conversion price of approximately $85.79 per share, which is a 42.5% premium over the last reported sale price on June 11, 2025 [2]. - Etsy can redeem the notes for cash starting June 20, 2028, if the stock price meets certain conditions [3]. Group 2: Use of Proceeds - Etsy estimates net proceeds from the offering to be approximately $639.3 million, or $688.5 million if the additional notes option is fully exercised, with $150 million allocated for share repurchases and the remainder for general corporate purposes [5][7]. - Concurrently, Etsy plans to repurchase shares at a price of $60.20, which was the last reported sale price on June 11, 2025 [7]. Group 3: Company Overview - Etsy operates two-sided online marketplaces connecting buyers and sellers globally, with a mission to "Keep Commerce Human" [9]. - The company also owns the fashion resale marketplace Depop, benefiting from shared expertise across its platforms [10].

Core Insights - Etsy is a global e-commerce marketplace with nearly 90 million active buyers, 5.5 million sellers, and over $11 billion in gross merchandise sales (GMS) [3] Group 1: Company Overview - Since Josh Silverman became CEO in 2017, Etsy has grown significantly, increasing GMS from approximately $2 billion to over $11 billion, and revenue from less than $400 million to a more profitable status [4] Group 2: Strategic Priorities - The main focus for Etsy moving forward is to achieve consistent growth, addressing current market challenges and leveraging its expanded marketplace [3][4]

Core Insights - The secondhand industry is facing challenges due to President Trump's tariffs, but companies like eBay and Etsy show resilience [1][2] Company Performance - eBay and Etsy reported Q1 2025 earnings, addressing tariff impacts; eBay's CEO noted that only about 5% of their gross merchandise value (GMV) comes from China, while Etsy's CFO stated that just over 1% of gross merchandise sales (GMS) are from U.S. imports from China [2][3] - Etsy experienced a 3.4% year-over-year decline in active buyers, totaling 88.5 million, and an 8.9% decline in GMS to $2.3 billion [7][8] - eBay reported a GMV growth to $18.8 billion and a revenue increase of over 1% to $2.58 billion, benefiting from price-conscious shoppers opting for used and refurbished goods [10][11] Market Dynamics - Sellers on eBay and Etsy primarily source products locally, which provides a competitive advantage over import-reliant rivals like Temu and Shein [2][6] - Etsy's focus on handcrafted and vintage goods may make it more vulnerable to economic uncertainty, as consumer spending is hesitant [7] - eBay has seen increased spending from customers looking to avoid tariffs, indicating a positive trend in consumer behavior [10][11] Strategic Positioning - Etsy's ownership of Depop, a secondhand fashion platform, continues to perform well despite economic challenges, achieving record-high GMS since its acquisition in 2021 [8] - eBay's strategy of focusing on used and refurbished goods has positioned it favorably in the current market environment [10]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated GMS was $2.8 billion, down approximately 6.5% year over year, with FX representing an 80 basis point headwind [26] - Consolidated revenue increased by approximately 1% year over year to $651 million, despite a decline in GMS [26] - Adjusted EBITDA was $171 million for Q1, representing a 26.3% margin, up 30 basis points year over year [27] - Consolidated take rate improved to 23.3%, an increase of 170 basis points over the 21.6% take rate reported in the same period last year [28] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS was down 8.9% year over year, while Depop continued to deliver strong growth in buyers, sellers, and GMS [26][30] - Marketplace revenue decreased 1.8% year over year, reflecting the decline in GMS, partially offset by increases in payments revenue [27] - Services revenue grew 7.7% year over year, with strong growth in on-site ads revenue at both Etsy and Depop [27] Market Data and Key Metrics Changes - US buyer GMS represented about 75% of first quarter Etsy Marketplace GMS, with both US and non-US buyer GMS performing similarly to Q4 of last year [30] - Gifting GMS outperformed non-gifting GMS during the quarter, benefiting from product and marketing efforts [30] Company Strategy and Development Direction - The company is focused on reigniting core Etsy marketplace growth through a balanced portfolio of product investments aimed at improving GMS and customer experience [6][19] - There is an emphasis on enhancing the mobile app experience, with the app reaching an all-time high of 44.5% of total Etsy Marketplace GMS [9] - The company is leveraging AI and machine learning to create personalized shopping experiences and improve customer engagement [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic backdrop but expressed confidence in the company's ability to adapt and improve growth through product and marketing strategies [44][45] - The outlook for Q2 anticipates a decline in consolidated GMS similar to Q1, but management remains optimistic about future growth driven by ongoing product and marketing initiatives [36][45] Other Important Information - The company announced the sale of Reverb for $105 million, which is expected to close in the coming months [24] - A new shop setup fee of $29 for new sellers was introduced, which management believes will lead to a healthier seller environment [61] Q&A Session Summary Question: Update on full year outlook and second quarter EBITDA margin guidance - Management indicated that the macroeconomic backdrop remains challenging, but they are encouraged by product and marketing improvements that could drive growth throughout the year [44][45] Question: Next steps for the app product roadmap - The app is expected to continue growing as a percentage of GMS, with ongoing efforts to enhance the browsing experience and personalization [52][54] Question: Concerns about the decline in active sellers impacting active buyers - Management clarified that the decline in active sellers is intentional and aimed at improving the quality of sellers on the platform, and they do not see a direct correlation with active buyer decline [61][62] Question: Take rate guidance for Q2 - Management explained that the take rate is expected to remain flat due to lapping previous price-related increments and improvements in Etsy Ads [70][71] Question: Gross margin headwinds from free shipping and ML costs - Management acknowledged that higher processing costs and machine learning expenses could create some gross margin headwinds, but they are necessary for enhancing the product experience [75][76] Question: Opportunities to leverage domestic sourcing amid rising prices - Management is focusing on promoting domestic sellers and enhancing the value proposition of Etsy in light of potential price increases from competitors [90]