Etsy, Inc. Reports First Quarter 2025 Results
Etsy reported mixed Q1 2025 results with consolidated GMS (Gross Merchandise Sales) of $2.8 billion, down 6.5% year-over-year. Revenue grew slightly by 0.8% to $651.2 million, driven by advertising revenue and seller fees.
Key metrics show some challenges: active buyers decreased 3.4% to 88.5 million, while habitual buyers dropped 11% to 6.2 million. The company posted a net loss of $52.1 million, including a $101.7 million goodwill impairment charge for Reverb, which Etsy plans to sell.
Despite headwinds, there were positive developments: Depop achieved its highest quarterly GMS since acquisition, the Etsy app reached record GMS share, and adjusted EBITDA margin remained healthy at 26.3%. The company is focusing on AI and machine learning to enhance user experience, with notable improvements in app metrics and buyer engagement.
Looking ahead, Q2 2025 guidance suggests similar to slightly better GMS decline rates compared to Q1, with an expected adjusted EBITDA margin of ~25%.
Etsy ha riportato risultati contrastanti nel primo trimestre 2025 con un GMS (Gross Merchandise Sales) consolidato di 2,8 miliardi di dollari, in calo del 6,5% rispetto all'anno precedente. I ricavi sono cresciuti leggermente dello 0,8%, raggiungendo 651,2 milioni di dollari, sostenuti dai ricavi pubblicitari e dalle commissioni dei venditori.
Le metriche chiave evidenziano alcune difficoltà: gli acquirenti attivi sono diminuiti del 3,4%, attestandosi a 88,5 milioni, mentre gli acquirenti abituali sono calati dell'11% a 6,2 milioni. L'azienda ha registrato una perdita netta di 52,1 milioni di dollari, inclusa una svalutazione di avviamento di 101,7 milioni per Reverb, che Etsy intende vendere.
Nonostante le difficoltà, ci sono stati sviluppi positivi: Depop ha raggiunto il suo GMS trimestrale più alto dall'acquisizione, l'app di Etsy ha ottenuto una quota record di GMS e il margine EBITDA rettificato è rimasto solido al 26,3%. L'azienda sta puntando su intelligenza artificiale e machine learning per migliorare l'esperienza utente, con significativi miglioramenti nelle metriche dell'app e nell'engagement degli acquirenti.
Guardando al futuro, le previsioni per il secondo trimestre 2025 indicano un tasso di declino del GMS simile o leggermente migliore rispetto al primo trimestre, con un margine EBITDA rettificato previsto intorno al 25%.
Etsy informó resultados mixtos en el primer trimestre de 2025 con un GMS (Ventas Brutas de Mercancía) consolidado de 2.8 mil millones de dólares, una disminución del 6.5% interanual. Los ingresos crecieron ligeramente un 0.8% hasta 651.2 millones de dólares, impulsados por ingresos publicitarios y tarifas de vendedores.
Las métricas clave muestran algunos desafíos: los compradores activos disminuyeron un 3.4% hasta 88.5 millones, mientras que los compradores habituales cayeron un 11% a 6.2 millones. La compañía reportó una pérdida neta de 52.1 millones de dólares, incluyendo un cargo por deterioro de fondo de comercio de 101.7 millones por Reverb, que Etsy planea vender.
A pesar de las dificultades, hubo aspectos positivos: Depop alcanzó su mayor GMS trimestral desde la adquisición, la app de Etsy logró una cuota récord de GMS y el margen EBITDA ajustado se mantuvo saludable en 26.3%. La empresa se está enfocando en inteligencia artificial y aprendizaje automático para mejorar la experiencia del usuario, con mejoras notables en métricas de la app y compromiso de los compradores.
De cara al futuro, la guía para el segundo trimestre de 2025 sugiere tasas de caída del GMS similares o ligeramente mejores que en el primer trimestre, con un margen EBITDA ajustado esperado de alrededor del 25%.
Etsy는 2025년 1분기 실적에서 혼조세를 보였으며, 통합 GMS(총 상품 판매액)는 28억 달러로 전년 대비 6.5% 감소했습니다. 매출은 광고 수익과 판매자 수수료에 힘입어 0.8% 소폭 증가한 6억 5,120만 달러를 기록했습니다.
주요 지표는 몇 가지 어려움을 나타냅니다: 활성 구매자 수는 3.4% 감소한 8,850만 명, 상습 구매자는 11% 줄어든 620만 명에 그쳤습니다. 회사는 5,210만 달러의 순손실을 기록했으며, 이 중 1억 1,700만 달러의 Reverb 영업권 손상차손이 포함되어 있으며 Etsy는 Reverb 매각을 계획하고 있습니다.
역풍에도 불구하고 긍정적인 발전도 있었습니다: Depop은 인수 이후 분기별 최고 GMS를 달성했으며, Etsy 앱은 기록적인 GMS 점유율을 기록했고, 조정 EBITDA 마진은 26.3%로 건전한 수준을 유지했습니다. 회사는 인공지능과 머신러닝을 활용해 사용자 경험을 향상시키는 데 주력하고 있으며, 앱 지표와 구매자 참여도에서 눈에 띄는 개선을 이루고 있습니다.
앞으로 2025년 2분기 가이던스는 1분기와 비슷하거나 약간 개선된 GMS 감소율을 예상하며, 조정 EBITDA 마진은 약 25%로 전망됩니다.
Etsy a publié des résultats mitigés pour le premier trimestre 2025 avec un GMS (Gross Merchandise Sales) consolidé de 2,8 milliards de dollars, en baisse de 6,5 % sur un an. Le chiffre d'affaires a légèrement augmenté de 0,8 % pour atteindre 651,2 millions de dollars, porté par les revenus publicitaires et les frais des vendeurs.
Les indicateurs clés montrent quelques difficultés : le nombre d'acheteurs actifs a diminué de 3,4 % pour s'établir à 88,5 millions, tandis que les acheteurs réguliers ont chuté de 11 % à 6,2 millions. La société a enregistré une perte nette de 52,1 millions de dollars, incluant une charge de dépréciation du goodwill de 101,7 millions liée à Reverb, que Etsy prévoit de céder.
Malgré ces vents contraires, des points positifs sont à noter : Depop a atteint son plus haut GMS trimestriel depuis son acquisition, l'application Etsy a enregistré une part de GMS record, et la marge EBITDA ajustée est restée solide à 26,3 %. L'entreprise mise sur l'intelligence artificielle et le machine learning pour améliorer l'expérience utilisateur, avec des améliorations notables dans les indicateurs de l'application et l'engagement des acheteurs.
Pour l'avenir, les prévisions pour le deuxième trimestre 2025 suggèrent des taux de baisse du GMS similaires ou légèrement meilleurs qu'au premier trimestre, avec une marge EBITDA ajustée attendue autour de 25 %.
Etsy meldete gemischte Ergebnisse für das erste Quartal 2025 mit einem konsolidierten GMS (Bruttowarenvolumen) von 2,8 Milliarden US-Dollar, was einem Rückgang von 6,5 % im Jahresvergleich entspricht. Der Umsatz stieg leicht um 0,8 % auf 651,2 Millionen US-Dollar, angetrieben durch Werbeeinnahmen und Verkäufergebühren.
Wichtige Kennzahlen zeigen einige Herausforderungen: Die Zahl der aktiven Käufer sank um 3,4 % auf 88,5 Millionen, während die der regelmäßigen Käufer um 11 % auf 6,2 Millionen zurückging. Das Unternehmen verzeichnete einen Nettoverlust von 52,1 Millionen US-Dollar, einschließlich einer Goodwill-Abschreibung von 101,7 Millionen US-Dollar für Reverb, das Etsy verkaufen möchte.
Trotz Gegenwind gab es positive Entwicklungen: Depop erreichte sein höchstes vierteljährliches GMS seit der Übernahme, die Etsy-App erreichte einen Rekordanteil am GMS, und die bereinigte EBITDA-Marge blieb mit 26,3 % gesund. Das Unternehmen konzentriert sich auf KI und maschinelles Lernen, um die Benutzererfahrung zu verbessern, mit bemerkenswerten Verbesserungen bei App-Metriken und Käuferengagement.
Für die Zukunft deutet die Prognose für das zweite Quartal 2025 auf ähnlich oder leicht bessere Rückgangsraten beim GMS im Vergleich zum ersten Quartal hin, mit einer erwarteten bereinigten EBITDA-Marge von etwa 25 %.
- Adjusted EBITDA margin remained healthy at 26.3%, slightly higher than expected
- Revenue increased 0.8% YoY to $651.2M with take rate reaching new quarterly high of 23.3%
- Services revenue grew 7.7% YoY to $192.7M
- Depop achieved highest quarterly GMS since 2021 acquisition
- Strong growth in on-site advertising revenue for both Etsy and Depop
- App metrics showing positive trends with highest-ever share of GMS
- Strong cash position with $997.2M in cash and investments
- Consolidated GMS declined 6.5% YoY to $2.8B
- Active buyers decreased 3.4% YoY to 88.5M
- Net loss of $52.1M compared to $63M profit previous year
- Goodwill impairment charge of $101.7M for Reverb
- Habitual buyers down 11% YoY to 6.2M
- GMS per active buyer declined 3.5% YoY to $120
- Operating expenses increased 23.2% YoY
- Active sellers decreased 11.3% YoY
Insights
Etsy's Q1 shows declining GMS and users but maintains profitability through higher take rates while navigating marketplace contraction.
Etsy's Q1 2025 results present a challenging growth picture with consolidated GMS declining
Despite volume declines, Etsy achieved slight revenue growth of
The reported net loss of
Management's Q2 guidance indicates continued GMS pressure with similar to potentially slightly better year-over-year declines compared to Q1, while maintaining an Adjusted EBITDA margin of approximately
Etsy deploys AI-driven personalization and app enhancements to combat declining marketplace metrics while streamlining its portfolio.
Etsy's Q1 2025 results reveal a strategic technology pivot as the company battles marketplace contraction. While overall metrics show declining activity, Etsy is seeing encouraging signals in mobile engagement, with the app delivering its highest-ever share of GMS and improved user acquisition metrics.
The company is aggressively implementing AI and machine learning capabilities across multiple customer touchpoints. Key initiatives include personalized browsing experiences with "algotorial" collections combining human expertise with AI, improved recommendation engines, and an AI chatbot now handling approximately two-thirds of initial buyer support interactions in North America.
Etsy's marketplace portfolio shows divergent performance trajectories. While the core marketplace struggles, Depop achieved strong top-line growth, particularly in the United States where it maintained its position as the fastest-growing online resale apparel platform. Simultaneously, Etsy has announced plans to divest Reverb, indicating strategic portfolio rationalization.
The company is proactively addressing evolving tariff challenges with a dedicated operational task force focused on buyer/seller education, improved search capabilities to surface locally shipped items, and reinforced "shop local" messaging across marketing channels. These technology investments and operational adaptations demonstrate a focused approach to platform optimization during market headwinds.
"Etsy's first quarter 2025 financial results were aligned with our expectations, with solid adjusted EBITDA performance despite pressure on the top line," said Josh Silverman, Etsy Inc. Chief Executive Officer. "We're excited to see green shoots, particularly in our App metrics, indicating that our work to build deeper connections with buyers and encourage more frequent visits is taking hold. By leveraging the power of artificial intelligence and machine learning, we're creating a more inspiring and engaging app experience that provides us with richer insights to personalize Etsy in meaningful ways for each buyer. We believe our seasoned team is ready to drive the next phase of Etsy's growth and success, and that our resilient two-sided marketplace business model can help us weather macroeconomic volatility."
First quarter 2025 performance highlights include:
- Consolidated GMS was
$2.8 billion 6.5% year-over-year and down5.7% on a currency-neutral basis. - Etsy marketplace GMS was
$2.3 billion 8.9% year-over-year and down8.1% on a currency-neutral basis.- Active buyers decreased
3.4% year-over-year to 88.5 million. - We reactivated 6.5 million buyers, up
2.1% from the prior year period, and acquired 4.8 million new buyers. - GMS per active buyer on a trailing twelve month basis for the Etsy marketplace declined
3.5% year-over-year to$120 - The number of habitual buyers was 6.2 million, down
11.0% year-over-year.
- Active buyers decreased
- Depop continued to see strong top line growth, particularly in
the United States ; first quarter GMS was the highest it has been since the business was acquired in 2021. - Consolidated revenue was
$651.2 million 0.8% versus the first quarter of 2024, with a take rate (i.e., consolidated revenue divided by consolidated GMS) of23.3% . Our positive revenue growth was driven primarily by significant growth in on-site advertising revenue for both Etsy and Depop, a full quarter impact of the seller set-up fee, and continued benefit from Payments expansion. - Consolidated net loss was
$52.1 million $115.1 million $101.7 million $(0.49) - Consolidated non-GAAP Adjusted EBITDA was
$171.1 million 26.3% . - Etsy ended the first quarter with
$997.2 million $189 million
"The first quarter of 2025 played out largely as expected," said Lanny Baker, Chief Financial Officer. "GMS trends were consistent with what we saw in the fourth quarter of 2024, our take rate reached a new quarterly high, and adjusted EBITDA margin remained healthy. In fact, adjusted EBITDA margin was slightly stronger than we expected for the quarter, reflecting both the efficiency of our business model and effective expense management. We have a rich portfolio of investments planned to support GMS improvement while evolving the Etsy marketplace customer experience to better serve buyer and seller needs. We are keeping a clear eye on Etsy's long-term opportunities, while also staying nimble in the face of uncertainty given recent tariff announcements and the fluid state of consumer confidence in our core markets."
First Quarter 2025 Financial Summary
(in thousands, except percentages; unaudited)
The financial measures and key operating metrics we use are:
Three Months Ended March 31, | % (Decline) Growth Y/Y | ||||
2025 | 2024 | ||||
GMS (1) | $ 2,793,336 | $ 2,986,500 | (6.5) % | ||
Revenue | $ 651,176 | $ 645,954 | 0.8 % | ||
Revenue take rate | 23.3 % | 21.6 % | 170 bps | ||
Marketplace revenue | $ 458,495 | $ 466,982 | (1.8) % | ||
Services revenue | $ 192,681 | $ 178,972 | 7.7 % | ||
Gross profit | $ 459,115 | $ 458,821 | 0.1 % | ||
Operating expenses | $ 481,442 | $ 390,731 | 23.2 % | ||
Net (loss) income | $ (52,096) | $ 63,004 | (182.7) % | ||
Net (loss) income margin | (8.0) % | 9.8 % | (1,780) bps | ||
Adjusted EBITDA (Non-GAAP) | $ 171,102 | $ 167,935 | 1.9 % | ||
Adjusted EBITDA margin (Non-GAAP) | 26.3 % | 26.0 % | 30 bps | ||
Active sellers (2) | 8,095 | 9,131 | (11.3) % | ||
Active buyers (2) | 94,779 | 96,392 | (1.7) % | ||
(1) | Consolidated GMS for the three months ended March 31, 2025 includes Etsy marketplace GMS of |
(2) | Consolidated active sellers and active buyers includes Etsy marketplace active sellers and active buyers of 5.4 million and 88.5 million, respectively, as of March 31, 2025. |
First Quarter 2025 Operating Highlights
Etsy
Etsy continued to innovate and drive customer engagement in the first quarter, deploying improved product experiences for buyers and sellers while executing strategic marketing initiatives designed to build buyer consideration and frequency over time. Selected first quarter operational highlights for the Etsy marketplace are as follows:
Product Highlights:
- The Etsy app delivered its highest ever share of GMS and an upward trend year-over-year in both monthly active users and downloads from first time app users. Advances were made to the Etsy app in order to:
- Introduce a more engaging and personalized browsing experience with new features, including refreshed navigation, a discovery-focused 'Shop' tab with inspiration-rich content, and curated "algotorial" collections generated with a combination of human expertise and Artificial Intelligence ("AI");
- Leverage Apple's new developer features to create more pathways for iOS users to discover content on our Etsy app. Initial implementations of 'App Intents' have already demonstrated positive impacts on search and daily active user engagement, paving the way for future integrations with Apple's platforms.
- Began offering 'Checkout on Merchant' for YouTube ads, enabling users to directly add Etsy products to their cart from ads, simplifying the path to purchase in these highly-trafficked channels;
- Deepened our ability to show buyers more relevant and higher quality listing recommendations by markedly improving machine learning ("ML") models to better predict 'next best content';
- Expanded AI Chatbot usage, which is now the first point of support interaction for about two thirds of buyers in
the United States andCanada who are seeking support from Etsy, allowing them to get help in fewer clicks; - For sellers, we continued investments in creating a more reliable and faster platform. These include:
- The introduction of 'Etsy Apps' in Shop Manager, a new hub for third-party tools that help sellers easily access useful apps, build trust with official partner badges, and expand developer integrations;
- Improved listing photo editing by creating custom filters that sellers can apply across their listings, making editing faster and enabling a consistent style.
Marketing Highlights:
- Increased the share of emails and push content that are personalized by more than 10 percentage points in the first quarter, with tests confirming out-performance when compared to standard, non-targeted messaging; this increase was significantly supported by ML experiments focused on tailoring direct marketing materials;
- Integrated Etsy within third-party AI-driven shopping experiences, including participating in the research preview of OpenAI's Operator, and enabling in-app purchase in Microsoft Copilot, creating new pathways for buyers to discover and engage with Etsy sellers' unique goods;
- Delivered a significant year-over-year increase in GMS from paid social channels;
- Enhanced the closed beta version of our Etsy Insider loyalty program, offering valuable third-party perks to gather key insights into member preferences as we continue to test the economics and impact of the program;
- Ran full-funnel marketing campaigns centered on Home and Style refresh and Birthday gifting.
To address the evolving tariff landscape, we established a small operational task force focused on delivering creative solutions for the Etsy marketplace community. Our efforts to date include providing buyers and sellers with timely guidance through informational banners and emails on shipping timelines; enhancing the buyer experience by improving search and filter capabilities to surface locally shipped items and reinforcing "shop local" messaging across owned and paid marketing channels; and preparing robust educational resources and support for sellers.
Reverb
In the first quarter, Reverb focused on enhancing the shopping experience while making it easier to sell:
- Year-over-year, Reverb nearly doubled the major musical instrument brands selling directly to customers on its platform;
- Added UPS as a new carrier to its calculated shipping tool, which automatically determines the shipping cost based on the locations of the seller and buyer, and leverages Reverb's discounted rates. Since the launch, the percentage of sellers using Reverb's shipping labels has increased to the highest it has been since we started tracking this data.
- Started showing the manufacturer's suggested retail price ("MSRP") for new versions of an item next to the prices of used versions listed on the site. This change helped buyers understand the value and significantly increased purchases of used items, especially by new Reverb customers.
On April 22, 2025, Etsy announced that it signed a definitive agreement to sell Reverb. We currently expect the transaction to close in the coming months. The buyers share Reverb's experience in the music industry and focus on supporting musicians.
Depop
Depop achieved strong top-line growth, notably in
- Achieved progress with scaling mid-funnel YouTube presence and built efficiencies in performance marketing channels; resulting in a record quarter of sales from paid marketing channels;
- Improved search and recommendation relevance and freshness through ranking model updates and more frequent training;
- Created a more efficient listing experience, adding enhanced photo editing capabilities and improved the user journey for the 'Repop' process, which allows buyers to relist items they have previously purchased on Depop.
___________________________________________ |
1 Based on Consumer Edge United States Monthly Credit Card Spend data |
Consolidated Second Quarter 2025 Financial Guidance
Q2 25 Guidance | |
GMS | We currently anticipate that consolidated Q2 25 |
Take Rate | Similar to Q1 25 |
Adjusted EBITDA Margin | ~ |
Please note that our guidance assumes currency exchange rates remain unchanged at current levels. It does not include the impact from the planned sale of the Reverb marketplace.
With respect to our expectations under "Consolidated Second Quarter 2025 Financial Guidance" above, reconciliation of Adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from Adjusted EBITDA; in particular, stock-based compensation expense and related payroll taxes, foreign exchange loss (gain), interest and other non-operating income, net, provision for income taxes, acquisition, divestiture, and corporate structure-related expenses, and other non-recurring expenses.
Webcast and Conference Call Information
Etsy will host a video webcast conference call to discuss these results at 8:30 a.m. Eastern Time today, which will be live-streamed via our Investor Relations website (investors.etsy.com) under the Events section. A copy of the earnings call presentation will also be posted to our website.
A replay of the video webcast will be available through the same link following the conference call starting at 12:00 p.m. Eastern Time today, for at least three months thereafter.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to "Keep Commerce Human," and we're committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc.'s "House of Brands" portfolio also includes fashion resale marketplace Depop, and Reverb, the largest online marketplace dedicated to music gear. Each Etsy, Inc. marketplace operates independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
Etsy was founded in 2005 and is headquartered in
Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Investor Relations Contact:
Deb Wasser, Vice President, Investor Relations
Sarah Marx, Senior Director, Investor Relations
ir@etsy.com
Media Relations Contact:
Kelly Clausen, Vice President, Communications & Community
press@etsy.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains or references forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial guidance for the second quarter of 2025 and the underlying assumptions; our ability to drive growth and success, and weather macroeconomic volatility; our future opportunities and portfolio of investments to support GMS improvement; our ability to navigate uncertainty regarding tariff announcements and the fluid state of consumer confidence in our core markets; the completion or timing of the sale of Reverb; and the impact of our product development and marketing initiatives, including our use of AI and ML. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "aim," "anticipate," "believe," "could," "enable," "estimate," "expect," "goal," "intend," "may," "outlook," "plan," "potential," "target," "will," or similar expressions and derivative forms and/or the negatives of those words.
Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include but are not limited to: (1) macroeconomic, geopolitical, and other events outside of our control; (2) the level of demand for our services or products sold in our marketplaces; (3) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (4) any real or perceived inaccuracies in our operational metrics; (5) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber incidents; (6) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (7) operational and compliance risks related to our payments systems; (8) the global scope of our business; (9) our ability to recruit and retain employees; (10) our ability to compete effectively; (11) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (12) risks related to our environmental, social, and governance activities and disclosures; (13) barriers to international trade and our efforts to grow our marketplace globally; (14) acquisitions, dispositions, or strategic partnerships that may prove unsuccessful or divert management attention; (15) our ability to deal effectively with fraud or other illegal activity; and (16) litigation and evolving global legal and regulatory requirements, including privacy and data protection laws, tax laws, product liability laws, laws regulating speech and platform moderation, antitrust laws, and intellectual property and counterfeiting regulations. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.
Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
Etsy, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(in thousands; unaudited) | |||
As of | As of | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 649,191 | $ 811,178 | |
Short-term investments | 218,504 | 228,322 | |
Accounts receivable, net | 8,948 | 8,702 | |
Prepaid and other current assets | 71,294 | 89,931 | |
Funds receivable and seller accounts | 162,046 | 189,558 | |
Total current assets | 1,109,983 | 1,327,691 | |
Property and equipment, net | 237,833 | 236,706 | |
Goodwill | 36,245 | 137,089 | |
Intangible assets, net | 413,877 | 413,898 | |
Deferred tax assets | 148,656 | 145,630 | |
Long-term investments | 129,481 | 111,725 | |
Other assets | 44,727 | 45,043 | |
Total assets | $ 2,120,802 | $ 2,417,782 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Current liabilities: | |||
Accounts payable | $ 17,396 | $ 25,979 | |
Accrued expenses | 264,207 | 374,947 | |
Finance lease obligations—current | 6,220 | 6,148 | |
Funds payable and amounts due to sellers | 162,046 | 189,558 | |
Deferred revenue | 22,297 | 19,213 | |
Other current liabilities | 46,972 | 49,268 | |
Total current liabilities | 519,138 | 665,113 | |
Finance lease obligations—net of current portion | 91,902 | 93,482 | |
Deferred tax liabilities | 7,407 | 7,957 | |
Long-term debt, net | 2,289,149 | 2,288,083 | |
Other liabilities | 123,505 | 122,013 | |
Total liabilities | 3,031,101 | 3,176,648 | |
Total stockholders' deficit | (910,299) | (758,866) | |
Total liabilities and stockholders' deficit | $ 2,120,802 | $ 2,417,782 | |
Etsy, Inc. Condensed Consolidated Statements of Operations | |||
(in thousands, except per share amounts; unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Revenue | $ 651,176 | $ 645,954 | |
Cost of revenue | 192,061 | 187,133 | |
Gross profit | 459,115 | 458,821 | |
Operating expenses: | |||
Marketing | 189,004 | 191,811 | |
Product development | 110,510 | 109,846 | |
General and administrative | 80,225 | 89,074 | |
Asset impairment charge | 101,703 | — | |
Total operating expenses | 481,442 | 390,731 | |
(Loss) income from operations | (22,327) | 68,090 | |
Other (expense) income, net | (10,992) | 11,565 | |
(Loss) income before income taxes | (33,319) | 79,655 | |
Provision for income taxes | (18,777) | (16,651) | |
Net (loss) income | $ (52,096) | $ 63,004 | |
Net (loss) income per share attributable to common stockholders: | |||
Basic | $ (0.49) | $ 0.53 | |
Diluted | $ (0.49) | $ 0.48 | |
Weighted-average common shares outstanding: | |||
Basic | 107,084 | 118,440 | |
Diluted | 107,084 | 135,338 | |
Etsy, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(in thousands; unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Cash flows from operating activities | |||
Net (loss) income | $ (52,096) | $ 63,004 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Stock-based compensation expense | 62,108 | 70,683 | |
Depreciation and amortization expense | 27,290 | 26,846 | |
Provision for expected credit losses | 2,385 | 4,078 | |
Deferred benefit for income taxes | (2,542) | (5,230) | |
Asset impairment charge | 101,703 | — | |
Other non-cash expense (income), net | 15,369 | (5,066) | |
Changes in operating assets and liabilities | (105,034) | (85,282) | |
Net cash provided by operating activities | 49,183 | 69,033 | |
Cash flows from investing activities | |||
Purchases of property and equipment | (3,248) | (2,257) | |
Website and app development | (10,662) | (7,456) | |
Purchases of investments | (116,958) | (142,359) | |
Sales and maturities of investments | 110,192 | 126,966 | |
Net cash used in investing activities | (20,676) | (25,106) | |
Cash flows from financing activities | |||
Payment of tax obligations on vested equity awards | (8,169) | (5,936) | |
Repurchase of stock | (189,177) | (158,344) | |
Proceeds from exercise of stock options | 2,945 | 2,252 | |
Payments on finance lease obligations | (1,514) | (1,548) | |
Other financing, net | (8,867) | 562 | |
Net cash used in financing activities | (204,782) | (163,014) | |
Effect of exchange rate changes on cash | 14,288 | (6,399) | |
Net decrease in cash and cash equivalents | (161,987) | (125,486) | |
Cash and cash equivalents at beginning of period | 811,178 | 914,323 | |
Cash and cash equivalents at end of period | $ 649,191 | $ 788,837 | |
Currency-Neutral GMS
We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non-
As reported and currency-neutral GMS decline for the periods presented below are as follows:
Quarter-to-Date Period Ended | |||||
As Reported | Currency-Neutral | FX Impact | |||
March 31, 2025 | (6.5) % | (5.7) % | (0.8) % | ||
March 31, 2024 | (3.7) % | (4.1) % | 0.4 % | ||
Non-GAAP Financial Measures
Reconciliation of Net (Loss) Income to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin
(in thousands, except percentages; unaudited)
Three Months Ended March 31, | |||
2025 | 2024 | ||
Net (loss) income | $ (52,096) | $ 63,004 | |
Excluding: | |||
Stock-based compensation expense and related payroll taxes (1)(2) | 63,573 | 70,683 | |
Depreciation and amortization | 27,290 | 26,846 | |
Provision for income taxes | 18,777 | 16,651 | |
Interest and other non-operating income, net | (4,902) | (5,310) | |
Foreign exchange loss (gain) | 15,894 | (6,255) | |
Asset impairment charge | 101,703 | — | |
Acquisition, divestiture, and corporate structure-related expenses | 1,263 | 1,898 | |
Restructuring and other exit (income) costs | (400) | 418 | |
Adjusted EBITDA | $ 171,102 | $ 167,935 | |
Divided by: | |||
Revenue | $ 651,176 | $ 645,954 | |
Adjusted EBITDA margin | 26.3 % | 26.0 % | |
(1) | Stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the periods presented below is as follows: |
Three Months Ended March 31, | |||
2025 | 2024 | ||
Cost of revenue | $ 7,528 | $ 7,704 | |
Marketing | 564 | 6,437 | |
Product development | 34,710 | 34,064 | |
General and administrative | 19,306 | 22,478 | |
Stock-based compensation expense | $ 62,108 | $ 70,683 | |
(2) | Beginning in the first quarter of 2025, the Company is excluding payroll tax expense related to stock-based compensation from Adjusted EBITDA because these taxes are directly related to stock-based compensation expense which is excluded from Adjusted EBITDA. The Company did not retrospectively apply this change to prior periods as the impact was immaterial to such periods. In the three months ended March 31, 2024 payroll tax expense related to stock-based compensation was |
View original content:https://www.prnewswire.com/news-releases/etsy-inc-reports-first-quarter-2025-results-302441983.html
SOURCE Etsy, Inc.
FAQ
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