Financial Data and Key Metrics Changes - Consolidated GMS for the third quarter was $2.72 billion, exceeding the top end of guidance, with a year-over-year decline of 0.9% when excluding Reverb [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] - Etsy Marketplace GMS was down 2.4% year over year, but improved by 300 basis points sequentially from Q2 to Q3 [23][24] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS declined 2.4% year over year, while Depop's GMS grew 39.4% year over year to $292 million, driven by new user growth and improved buyer conversion [10][23] - Services revenue increased by 12.7% year over year, primarily due to growth in on-site ad revenue at both Etsy and Depop [29] 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, showing slight improvement [25] - GMS per active buyer remained stable at $1.21, with encouraging month-by-month improvements in purchase frequency and average item values [26] 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 [12][16] - A partnership with OpenAI aims to integrate Etsy listings into ChatGPT, enhancing the shopping experience and increasing brand consideration [13][40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer environment heading into the holiday season, with expectations for Q4 consolidated GMS between $3.5 billion and $3.65 billion [33][55] - The company is committed to investing in Depop's brand marketing to expand its market presence, which may compress margins in the near term but is seen as a long-term growth opportunity [34][84] Other Important Information - The company has made significant improvements in its app, with app GMS outperforming non-app GMS by 13 percentage points, indicating a positive impact from recent enhancements [16][27] - Seller satisfaction scores have increased by over 10% year over year, reflecting the effectiveness of new AI-powered tools and improved support [19] Q&A Session Summary Question: About the OpenAI partnership and its integration - Management highlighted the excitement around the OpenAI partnership, stating that Etsy listings will be included in the organic experience, with transactions processed through Etsy's payment system [38][40] Question: Engagement improvements on the app - Management discussed meaningful investments in reshaping the app's home screen to enhance discovery, leading to increased engagement metrics [44][46] Question: Fourth quarter guidance and holiday opportunities - Management provided insights on the uncertain consumer outlook for the holiday season, emphasizing the importance of their initiatives in driving sequential improvement [53][55] Question: Balancing traffic from AI platforms versus direct mobile - Management indicated that both channels can coexist and benefit Etsy, with agentic commerce expected to enhance brand consideration [78][82] Question: Investments planned for Depop - Management confirmed that the brand campaign for Depop is a long-term investment aimed at expanding awareness, which may compress margins in the short term but is expected to yield significant growth [79][84]