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- **Leadership Transition**: Josh Silverman steps down as CEO; Kruti Goyal to lead AI-driven growth strategy.
- **Q3 Financials**: Revenue $678M (+6.1% YoY), adjusted EBITDA $172M (25.4% margin). Depop GMS up 39.4% YoY.
- **App Growth**: App GMS outperforms non-app by 13%, with ML-driven engagement up 20% YoY.
- **OpenAI Integration**: Early success with higher-intent buyers, no seller fees, long-term brand opportunity.
- **Depop Investment**: Q4 marketing spend accelerates for U.S. expansion, targeting $1B+ annualized GMS.

**【CEO Summary Section】**
- **Leadership Transition**: Josh Silverman steps down as CEO, transitioning to Executive Chair, while Kruti Goyal becomes CEO effective January 2026. Kruti, with 15+ years at Etsy, will lead the next phase focused on AI-driven personalization and growth.
- **Q3 2025 Results**: Consolidated GMS of $2.72 billion (0.9% YoY growth), revenue of $678 million (6.1% YoY), and adjusted EBITDA of $172 million (25.4% margin). Etsy marketplace GMS down 2.4% YoY, but sequential improvement of 300 basis points. Depop GMS up 39.4% YoY to $292 million, driven by U.S. growth and brand campaigns.
- **AI Integration**: Partnership with OpenAI enables purchases via ChatGPT, with Etsy covering transaction fees. Early data shows higher intent and conversion rates from agentic commerce.
- **App Success**: App GMS outperforms non-app by 13 percentage points, with home screen engagement up significantly. New ML models improve recommendations, driving 20% YoY growth in app GMS.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 revenue $678 million (2.4% reported growth), services revenue up 12.7% YoY, and consolidated take rate 24.9% (220 basis points YoY expansion). Free cash flow $200 million, cash reserves $1.6 billion, and $120 million in share buybacks.
- **Depop Investment**: Q4 brand marketing spend accelerates, compressing margins to 24% but positioning for long-term growth in the $1 billion+ annualized GMS business. U.S. GMS up 59% YoY, with focus on expanding awareness among younger demographics.
- **Tariff Resilience**: Despite U.S. import headwinds, domestic supply (60+ million active U.S. listings) and proactive seller support mitigate impact, with GMS per buyer stable at $121.

**【Q&A Key Highlights】**
- **OpenAI Partnership**: Transaction fees akin to influencer marketing, with no seller pass-through. Early data shows higher intent buyers, but scale remains small. Long-term potential to drive brand consideration across new channels.
- **App Engagement**: App users visit 5x more frequently and convert 1.5x better than non-app users. ML-driven discovery feeds and redesigns (e.g., home screen hubs) drive 20% YoY GMS growth.
- **Depop Strategy**: $208 million Q3 marketing spend (30.7% of revenue) focused on U.S. expansion. Holiday campaign emphasizes authenticity and community, targeting Gen Z and younger demographics.
- **Loyalty Program**: Beta launch of Etsy Insider Loyalty Program offers 5% credit and shipping discounts, targeting top buyers. Early results show engagement uplift, with focus on frequency and retention.
- **Tariff Outlook**: Uncertainty around consumer spending, but Etsy's diversified supply and proactive seller support mitigate risks. U.S. domestic GMS growth offsets international headwinds.


Etsy, Inc. (ETSY) Q3 2025 Earnings Call Transcript

- **Revenue Recovery**: Q2 GMS down 5.4% YoY (improving from Q1's 6.2%), with app GMS growing to 44.8% of total. Depop GMS +35% YoY, U.S. +54% YoY.
- **App Dominance**: App downloads +7% YoY, 40% of communications personalized in Q2 (targeting 100% by year-end). App GMS growth driven by AI recommendations and push notifications.
- **Marketing Efficiency**: Q2 marketing spend +16% YoY, with PLA segmentation boosting click share and paid social GMS growth. Creator collective spend +50% QoQ.
- **Financial Strength**: $90 million free cash flow, $335 million share buybacks. Q3 GMS guidance $2.6-2.7 billion (+1.9% YoY midpt). Take rate 24.5%, EBITDA margin 25%.
- **AI & Agentic Edge**: Top recipient of chatbot traffic; AI enables dynamic landing pages for unique inventory. GenAI recommendations drive 50% of Depop purchases.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $673 million (+4% YoY), driven by improved app experience and paid social investments. Etsy GMS down 5.4% YoY (vs. 6.2% Q1), with app GMS growing YoY to 44.8% of total. Depop GMS up 35% YoY, U.S. growth 54% YoY.
- **App Optimization**: App downloads up 7% YoY, with personalized features (e.g., push notifications, recommendations) boosting user engagement. Q2 attributed GMS from owned channels +33% YoY.
- **AI & Personalization**: 40% of communications personalized in Q2, targeting 100% by year-end. AI-driven search and recommendations modeled after Depop's success, where 50% of purchases come from recommendations.
- **Strategic Shifts**: Shifted brand media to OTT/digital (65% of Q4 spend vs. 40% prior), reduced linear TV to low single digits. App becoming centerpiece for discovery, with 7% MAU growth YoY.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $169 million (25.1% margin), up 25% YoY. Take rate 24% (+200bps YoY), driven by payments growth and PLA efficiency. Free cash flow $90 million, $635 million trailing 12 months.
- **Marketing Spend**: $212 million (+16% YoY), 31.5% of revenue. PLA segmentation boosted click share, paid social GMS +meaningful YoY. Creator collective spend +50% QoQ on influencer marketing.
- **Share Repurchases**: $335 million (6.4 million shares) in Q2, including $150 million tied to debt issuance. Repurchases expected to continue with $1.5 billion cash on hand.
- **Guidance**: Q3 GMS $2.6-2.7 billion (midpoint +1.9% YoY vs. Q2's -2.6%). Take rate ~24.5%, EBITDA margin ~25%.

**【Q&A Highlights】**
- **App Growth**: App LTV higher than web; 3% of GMS shift from web to app. Q3 app downloads expected to accelerate with paid spend. 
- **Marketing ROI**: PLA CPC stable but higher click share due to segmentation. Paid social ROAS improving, testing AI-generated ad copy for unique inventory.
- **Payments Growth**: Etsy Payments penetration near full, with small tailwind from new markets. Sellers prefer consolidated payments, driving loyalty.
- **AI & Agentic Shopping**: Etsy top recipient of chatbot traffic; AI helps surface unique inventory for agents. GenAI enables dynamic landing pages for weddings, gifts, etc.
- **Margin Management**: Core Etsy EBITDA target high 20s (vs. prior 30%+), balancing growth investments. Margins expected to expand sequentially in Q3.


Etsy, Inc. (ETSY) Q2 2025 Earnings Call Transcript

- **App Growth Accelerates**: App GMS at 44.5% of total, with YoY conversion rate improvement and first-time user downloads up.
- **AI-Powered Personalization**: Algatorial curation blends AI and merchandising, delivering personalized collections; GenAI marketing tests show engagement lift.
- **Seller Quality Improves**: New $29 shop fee reduced low-quality sellers, with active sellers succeeding in sales up 60% YoY.
- **Tariff Resilience**: Minimal direct exposure (<1% U.S. imports from China), but cautious on macroeconomic consumer spending trends.
- **Profitability Holds**: 26.3% EBITDA margin, take rate 23.3%, with free cash flow $35M and strong 12M trailing $685M.

**【CEO Summary Section】**
- **Revenue Growth and App Penetration**: Q1 2025 Etsy Marketplace GMS declined 8.9% YoY, but app GMS reached 44.5% of total GMS, up YoY. App buyer conversion rate improved, and app downloads for first-time users increased.
- **AI and Personalization**: Launched algatorial curation blending AI and merchandising expertise, enabling personalized collections based on individual shopper activity. Testing GenAI for personalized marketing copy showed promise.
- **Seller Quality**: Introduced $29 new shop setup fee, reducing low-quality sellers. Active sellers succeeding in making sales increased, with higher retention rates.
- **Tariff Resilience**: 90% of sellers source domestically, minimizing direct tariff exposure. U.S. imports account for <1% of GMS, with high replacement rates if needed.

**【CFO Financial Commentary】**
- **Financial Performance**: Q1 2025 consolidated revenue $651M (+1% YoY), adjusted EBITDA $171M (26.3% margin, +30bps YoY). Take rate improved to 23.3% vs 21.6% YoY, driven by higher payments revenue and ads.
- **Cost Management**: Reduced G&A expenses (bad debt, taxes) offset by ML/cloud costs (+$10M) and free shipping program ($35M impact). Free cash flow $35M, trailing 12M $685M.
- **GMS Outlook**: Q2 2025 GMS decline rate similar to Q1, with macroeconomic challenges expected to persist. Q2 EBITDA margin ~25% due to higher marketing and hiring costs.

**【Q&A Key Themes】**
- **Tariff Impact**: Minimal direct exposure, but cautious on broader consumer spending. U.S. imports from China <1% of GMS; international trade lanes resilient.
- **Social Media Spend**: Increasing focus on paid social (e.g., Facebook, Instagram) despite lower ROI than search. Q1 Etsy Marketplace GMS from paid social up YoY.
- **Seller Strategy**: New shop fee reduced low-quality sellers, improving platform health. Sellers succeeding in sales up 60% YoY.
- **AI Partnerships**: Featured in OpenAI and Microsoft Copilot research, positioning for future AI-driven shopping trends.


Etsy (ETSY)-30 Apr 25-2025 Q1 Earnings call transcript

- **Revenue resilience amid GMS decline**: 2024 revenue grew 2% to $2.8B, with take rate expansion offsetting GMS headwinds. 
- **Quality-first strategy**: $300M+ opportunity cost from 2024 quality-focused initiatives, but early signs of improved customer satisfaction (e.g., +5-star reviews). 
- **2025 growth drivers**: Rebalanced product pipeline, easier comps, and AI-powered discovery surfaces targeting $1B+ app-based GMS uplift. 
- **Financial discipline**: 29.4% EBITDA margin in Q4, with plans to maintain 25-26% Q1 margin while reinvesting in growth. 
- **Tariff resilience**: Minimal exposure to Chinese imports; local seller supply chains provide competitive advantage.

**【CEO Summary Section】**
- **2024 Performance Overview**: Consolidated GMS declined 4% to $12.6 billion, while revenue grew 2% to $2.8 billion. Adjusted EBITDA reached $782 million (27.8% margin), driven by take rate expansion and cost control. 
- **Strategic Shifts**: Prioritized quality and differentiation over short-term GMS growth, resulting in a $300+ million opportunity cost. Focused on discovery-driven experiences (e.g., gifting, personalized items) to fuel frequency. 
- **2025 Priorities**: Rebalance product development to accelerate near-term GMS wins while maintaining long-term investments in AI/ML-powered quality scoring and browsable surfaces. 

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Consolidated GMS down 6.8% to $3.7 billion, but revenue rose 1.2% to $852 million. Adjusted EBITDA hit $251 million (29.4% margin), up 6% YoY. Take rate expanded to 22.8%, driven by Etsy Ads and payments growth. 
- **Cost Management**: Product development spend as % of revenue declined to 15.8%, while marketing spend increased 13% YoY to $30.5 million. 
- **2025 Outlook**: Q1 GMS expected to decline ~6-8%, but improving comps and product pipeline could drive second-half recovery. Target 23% take rate and 25-26% EBITDA margin in Q1, with potential for margin expansion later in the year. 

**【Key Q&A Insights】**
- **Marketing Strategy**: Shifting from linear TV to connected TV and paid social. Mid-funnel reactivation campaigns (e.g., weddings, babies) are high ROI. 
- **GMS Growth Path**: Confidence in 2H recovery due to: 1) Easier year-over-year comps; 2) Foundational 2024 investments in quality and discovery; 3) Rebalanced product development pipeline. 
- **Seller Dynamics**: Active sellers declined 10% YoY, but higher-quality sellers (e.g., those making sales) increased. Etsy’s unique selection (~100M+ listings) remains a competitive advantage. 
- **Tariff Impact**: Minimal exposure to Chinese imports; ~75% of purchases are U.S.-based. Sellers’ local supply chains provide resilience. 
- **Loyalty Program**: Early Etsy Insider beta shows 25%+ increase in purchase frequency. Scaling will focus on unit economics and engagement without diluting brand value.

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