Core Insights - Etsy, Inc. shares declined following the release of its third-quarter earnings report, despite some analysts maintaining a positive outlook and raising price targets for the stock [1] Group 1: Analyst Insights - Canaccord Genuity analyst Maria Ripps noted a 2% year-over-year decline in the company's marketplace Gross Merchandise Sales (GMS), but highlighted a nearly 40% acceleration in GMS growth at Depop. She also mentioned that new machine learning models in the app discovery feed resulted in double-digit engagement gains [2] - Needham analyst Bernie McTernan emphasized that the partnership with OpenAI positions Etsy as a leader in agentic commerce, with ChatGPT integration facilitating direct platform purchases through instant checkout, which enhances conversion rates and brand visibility [2] - McTernan observed that GMS contraction is decreasing faster than expected, with Q3 GMS down 2.4% year-over-year compared to a 4.8% decline in Q2, supported by improved app engagement and buyer reactivation [3] Group 2: Price Target Adjustments - Canaccord Genuity maintained a Buy rating on Etsy and raised its price target from $76 to $80 [2] - Needham & Co. also reiterated its Buy rating on Etsy, increasing the price target from $72 to $76 [3] Group 3: Market Conditions and Risks - Analysts see potential for further upside if macroeconomic trends improve or if Etsy's unique growth initiatives attract more buyers or sellers [3] - Risks include intensified competition, particularly from Chinese e-commerce players, and ongoing macroeconomic challenges [3]

Core Insights - Etsy Inc. reported stronger-than-expected third-quarter earnings with adjusted earnings per share of $0.63, surpassing analyst estimates of $0.52 [1] - Revenue increased by 6.1% year-over-year to $678 million, exceeding expectations of $655.87 million [1] Financial Performance - Gross Merchandise Sales (GMS) reached $2.72 billion, a 0.9% increase from the previous year, excluding Reverb [2] - Etsy marketplace GMS declined by 2.4%, while Depop's GMS experienced a significant surge of 39.4% [2] - The company's take rate improved to 24.9%, an increase of 220 basis points year-over-year, attributed to enhanced on-site advertising performance [2] Guidance and Projections - For the fourth quarter, Etsy projects GMS between $3.5 billion and $3.65 billion, with an adjusted EBITDA margin of approximately 24%, down from 25.4% in Q3 [2] - The company anticipates its take rate to remain around 24.5% [2] User Metrics - Active buyers decreased by 5% year-over-year to 86.6 million, while active sellers fell by 10.9% to 5.5 million, impacted by the seller set-up fee introduced in April [3]

Core Insights - The company is undergoing a leadership change with Krissy Patel Goyle being promoted from Chief Growth Officer to CEO effective January 1, succeeding Josh Silverman who has led the company for eight years [2][3] Leadership Transition - Krissy Patel Goyle has been with the company since 2011 and has experience running Depop, a company acquired by Etsy [2] - Josh Silverman has navigated the company through various crises, including the lockdown and supply chain issues, and is now focusing on positioning the business for artificial intelligence [3] Strategic Focus - The company has already engaged in a partnership with OpenAI, indicating a strong focus on artificial intelligence [3] - There is a belief that Patel Goyle's experience in personalization and AI at Depop will be crucial for the company's future success [4] Investor Sentiment - There appears to be some nervousness among investors regarding the CEO transition and the company's forward-looking guidance related to earnings [4]

Core Insights - Etsy's shares fell nearly 9% following the announcement of a leadership change, but are still up about 30% year-to-date [1][4] - CEO Josh Silverman will step down at the end of 2025, with President and Chief Growth Officer Kruti Patel Goyal taking over [2][6] - Silverman will transition to the role of executive chair until the end of 2026, emphasizing the timing is right for new leadership [2][3] Company Performance - Etsy reported better-than-expected third-quarter results, with earnings per share of $0.63 and revenue of $678 million, a 2.4% year-over-year increase [3][6] - Despite the positive earnings, gross merchandise sales declined by 6.5% to $2.72 billion, influenced by the sale of the music gear marketplace Reverb [3][6] - Investors are likely to monitor how the new CEO will address competition and marketplace growth challenges [2][3]

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]

Core Insights - Etsy CEO Josh Silverman will step down and transition to the role of executive chairman at the end of the year [1] - Kruti Patel Goyal, currently the CEO of Etsy-owned Depop, will assume the CEO position at Etsy starting January 1, 2026 [1]

Leadership Transition - Etsy, Inc. announced a leadership transition plan where Kruti Patel Goyal will become the new CEO effective January 1, 2026, succeeding Josh Silverman who will step down on December 31, 2025 [1][2] - Josh Silverman will serve as Executive Chair until December 31, 2026, to ensure continuity during the transition [1] - Fred Wilson, the current Chair of Etsy's Board since 2017, will step down as Chairman but will remain on the Board [1] Performance and Growth - Under Josh Silverman's leadership, Etsy has seen significant growth: the number of shoppers has more than tripled, Gross Merchandise Sales (GMS) has grown fourfold, revenue has increased nearly eightfold, and the share price has appreciated by more than seven times [2] - Kruti Patel Goyal has been instrumental in leading Etsy's strategic growth initiatives over the past year, which have improved top-line performance [2] Kruti Patel Goyal's Background - Kruti Patel Goyal has extensive experience, having served as Etsy's President and Chief Growth Officer, overseeing various departments including Product, Engineering, and Marketing [3] - Prior to her role at Etsy, she was the CEO of Depop, where she nearly doubled gross merchandise sales and buyer base, making it the fastest-growing online apparel resale marketplace in the U.S. [4] - Kruti has over 10 years of experience at Etsy in various leadership roles, including Chief Product Officer and head of Marketplace Integrity and Trust & Safety [5]

Core Insights - Etsy, Inc. plans to release its third quarter 2025 financial results on October 29, 2025, before market opening [1] - A video webcast conference call will be held at 8:30 a.m. Eastern Time on the same day to discuss the results, allowing publishing research analysts to ask questions [2] - A replay of the webcast will be available starting at 12:00 p.m. Eastern Time on the same day for at least three months [3] Company Overview - Etsy operates two-sided online marketplaces connecting millions of buyers and sellers globally, with a mission to "Keep Commerce Human" [4] - The primary marketplace, Etsy.com, is known for unique and creative goods, providing tools and services to sellers [4] - Etsy also owns the fashion resale marketplace Depop, with both marketplaces operating independently while sharing expertise [5] Investor Relations - Etsy utilizes its Investor Relations website and the Etsy News Blog for disclosing material non-public information and compliance with Regulation FD [6] - Key contacts for investor and media relations are provided for further inquiries [6]

Core Insights - Etsy is utilizing artificial intelligence to drive growth, which has led to significant fluctuations in its stock price [1] Group 1: Partnership and Innovations - OpenAI announced a partnership with Etsy, allowing U.S. ChatGPT users to shop directly with Etsy sellers through the chat interface [2] - The integration connects millions of ChatGPT users to 5.4 million active Etsy sellers, positioning Etsy within the emerging concept of "agentic commerce" [3] Group 2: Stock Performance and Analyst Sentiment - Following the AI announcement, Etsy's stock surged 12% to a 52-week high, but subsequently fell 10.7% after analysts expressed concerns about the sustainability of AI-driven commerce [3][4] - Morgan Stanley reiterated an Equal Weight rating with a price target of $54, suggesting that the initial enthusiasm may be overblown [4] - Conversely, BTIG raised its price target on Etsy to $81 from $72, maintaining a Buy rating, indicating a more optimistic outlook on the potential of ChatGPT and agentic innovation [5] Group 3: Financial Performance - Etsy's Gross Merchandise Sales (GMS) decreased by 4.8% year-over-year to $2.8 billion, while net income dropped 46% to $28.8 million, largely due to foreign exchange losses [6] - Revenue increased by 3.8% to $672.7 million, primarily driven by Etsy Ads and payment services [6] - Depop, acquired for $1.6 billion, showed strong performance with GMS rising 35% year-over-year to $250 million, and U.S. growth accelerating by 54% [7]

Core Viewpoint - Etsy, Inc. is transitioning its Common Stock listing from Nasdaq to the New York Stock Exchange (NYSE), with the Nasdaq listing ceasing on October 10, 2025, and the NYSE listing commencing on October 13, 2025 [1]. Company Overview - Etsy operates two-sided online marketplaces that connect millions of buyers and sellers globally, with a mission to "Keep Commerce Human" [3][4]. - The primary Etsy marketplace serves as a global destination for unique and creative goods, providing tools and services to sellers to meet their business needs [3][4]. Leadership Statements - CEO Josh Silverman expressed excitement about joining the NYSE, emphasizing Etsy's commitment to personalized shopping experiences and long-term shareholder value [2]. - NYSE President Lynn Martin welcomed Etsy, highlighting the company's integration of technology with the human experience as a valuable addition to the NYSE community [2].