Slide 1: Q1 2025 Financial Results
Q1 2025 Financial Results April 30, 2025
Slide 2: Forward-looking Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to statements relating to: our financial guidance for the second quarter of 2025 and underlying assumptions; our customer relationship flywhee
Slide 3: Q1 25 Consolidated results in line with expectations
Q1 25 Consolidated results in line with expectations Q1 25 Consolidated GMS Q1 25 Consolidated Revenue Q1 25 Consolidated Adj. EBITDA Etsy marketplace GMS was $2.3 billion, down $2.8B $651M $171M 8.9% Y/Y* -6.5% Y/Y and -5.7% +0.8% Y/Y 26.3% Adj. EBITDA Margin Y/Y on a currency neutral basis GMS, re
Slide 4: Creating a powerful customer relationship flywheel
Creating a powerful customer relationship flywheel Evolve our surfaces to become more browsable Create more personalized on-site experiences Capture vastly more + enriched data about consumers’ interests, inclinations, identities and habits Generate more personalized marketing Build more powerful mod
Slide 5: Evolving our surfaces to become more browsable: amplifying human curation with AI
Evolving our surfaces to become more browsable: amplifying human curation with AI “Algotorial curation” 50 human curated listings → ~80x increase in listings per theme Launched with 200+ trends and 150 hobbies Pre-launch testing showed promising buyer engagement; experience now fully launched in the
Slide 6: Seeing 'green shoots' from App investments
Seeing ‘green shoots’ from App investments 44.5% App’s highest-ever % share of total GMS; accelerating at fastest pace in a year* App GMS significantly outperforming non-App GMS Year-over-year upward trend in monthly active users Year-over-year increase in downloads from first-time app users *Etsy Mar
Slide 7: Capturing vastly more data to build more powerful models leveraging LLMs
Capturing vastly more data to build more powerful models leveraging LLMs +16.4% increase in buyers we recognize* Search Recommendations Ads Before → Better buyer data pipeline Compared to the end of 2024, we After are already pulling in over ⅓ more data than from Search alone Graphic for illustratio
Slide 8: More personalized on-site and offsite experiences
More personalized on-site and offsite experiences Examples of more personalized Examples of more personalized Testing GenAI to personalize onsite experiences marketing - push, email marketing copy at scale (infusing ML into retention + engagement strategies) 🔥 Only a Few Left! 25% Off! This burnt…
Slide 9: Select actions to best position the Etsy marketplace for changes in global commerce
Select actions to best position the Etsy marketplace for changes in global commerce ● Provide buyers and sellers with guidance on how to shop and sell with confidence (ex: informational banners, emails on shipping times and more) ● Enable buyers to easily search, filter and discover items that ship do
Slide 10: Depop continues to shine; signed an agreement to sell Reverb
Depop continues to shine; signed an agreement to sell Reverb ● Best-ever GMS quarter for Depop since Etsy ● Stock purchase agreement signed April 21 to acquisition in 2021; record level of seller sell Reverb to a holding company affiliated acquisition with Servco Pacific Inc. and Creator Partners ● Le
Slide 11: Customer centric approach has driven Depop's success
Customer centric approach has driven Depop’s success Success metrics 2022-2024 ● Active buyer count +55% r ● Approx visits per month +32% ● Average MAUs +21% Time100 List of Most Influential Vogue Business Feature Companies ● Sales per MAU +14% ● More efficient browsing (average product views per sess
Slide 12: We reported in-line GMS, and take rate and adjusted EBITDA were ahead of guidance
We reported in-line GMS, and take rate and adjusted EBITDA were ahead of guidance Consolidated Results Q1 25 GMS Q1 25 Revenue Q1 25 Adjusted EBITDA $2.8B $651M $171M -6.5% Y/Y, -5.7% Y/Y +0.8% Y/Y 26.3% Adj. EBITDA Margin constant currency basis +170 bps y/y take-rate expansion 12
Slide 13: Take rate grew by 170 bps Y/Y
Take rate grew by Incremental Consolidated Take Rate 170 bps Y/Y, Bridge primarily driven by Q1 24 vs. Q1 25 Etsy & Depop Ads, and continued payments expansion Q1 25 Consolidated Revenue $651M, up 0.8% Y/Y *Revenue items above include the impact of lower Y/Y GMS where applicable. Other revenue prima
Slide 14: Investing in Product Development pipeline and rebalancing Marketing portfolio
We are investing in an ambitious Product Development pipeline and rebalancing our Marketing portfolio Consolidated Q1 25 Consolidated Q1 25 Product Development spend Marketing spend Paid Social spend grew by +46% y/y, and is +0.6% now 23% of Y/Y Performance Marketing Spend, up from 19% last year +20
Slide 15: Active buyer metrics remain muted during a challenging Q1
Active buyer metrics remain muted during a challenging Q1 25 Q1 25 Active Buyers Q1 25 New Buyers Q1 25 Reactivated Buyers 88.5M 4.8M 6.5M -3.4% Y/Y -15.4% Y/Y +2.1% Y/Y Q1 25 Repeat Buyers Q1 25 Habitual Buyers Q1 25 GMS / Active Buyer1 35.7M 6.2M $120 -3.4% Y/Y -11% Y/Y -3.5% Y/Y Metrics presented
Slide 16: Capital light business model delivers a healthy balance sheet and strong cash flow
Capital light business model delivers a healthy balance sheet and strong cash flow Trailing Twelve Month Consolidated Free Cash Flow Cash Balance 3/31/251 ($M) ~$1B Share repurchases during Q1 25 ~$189M Q1 25 Consolidated Free Cash Flow $35.3M In Q1 2025, we converted ~87% of our Adj. EBITDA to free
Slide 17: Etsy marketplace's GMS 'trade routes' and potential tariff impacts
Etsy marketplace’s GMS ‘trade routes’ provide significant diversity and agility in relation to potential tariff impacts Etsy Standalone Approx. GMS % Share The vast majority of this slice is US imports: by Trade Route FY 2024 ● Top 5 countries (Turkey, UK, Canada, India, and Ukraine) account for abou
Slide 18: Consolidated Guidance as of April 30, 2025
Consolidated Guidance as of April 30, 2025 Q2 25 Guidance GMS We currently anticipate that consolidated Q2 25 GMS will decline at a rate similar to, to potentially slightly better than, the year-over-year performance reported for Q1 25 Take Rate Similar to Q1 25 Adjusted EBITDA Margin ~25% Please no
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
Appendix 20
Slide 21: Q1 25 Etsy Marketplace GMS breakdown by category and geography
Q1 25 Etsy Marketplace GMS breakdown by category and geography Etsy marketplace Category GMS (%) Etsy marketplace Geography GMS (%) 4% Our top categories declined on a Y/Y basis Top 6 categories represented ~87% of U.S. Buyer GMS and non-U.S. Buyer GMS GMS both declined Y/Y Metrics presented represe
Slide 22: What is Etsy's algotorial curation?
What is Etsy’s algotorial curation? A powerful blend of AI-driven scalability and the know-how of Etsy’s world-class merchandising team. Etsy experts spot the latest Our engineers use LLMs help align the aesthetic cohesiveness trends and find high-quality, relevant items → machine learning to scale t
Slide 23: Condensed Consolidated Balance Sheets
Condensed As of March 31, 2025 As of December 31, 2024 Consolidated (in thousands) Cash and cash equivalents $ 649,191 $ 811,178 Balance Sheets Short-term investments 218,504 228,322 Accounts receivable, net 8,948 8,702 Funds receivable and seller accounts 162,046 189,558 Property and equipment, net
Slide 24: Condensed Consolidated Statement of Operations
Condensed Three months Three months Consolidated ended 3/31/25 ended 3/31/24 (in thousands) Statement of Revenue $ 651,176 $ 645,954 Cost of revenue 192,061 187,133 Operations Gross profit Marketing 459,115 189,004 458,821 191,811 Product development 110,510 109,846 General and administrative 80,225
Slide 25: Condensed Consolidated Statement of Cash Flows
Condensed Three months ended 3/31/25 Three months ended 3/31/24 Consolidated (in thousands) Net (loss) income $ (52,096) $ 63,004 Statement of Net cash provided by operating activities 49,183 69,033 Net cash used in investing activities (20,676) (25,106) Cash Flows Net cash used in financing activiti
Slide 26: Reconciliation of Quarterly Net Income to Adj. EBITDA
Reconciliation of Quarterly Net Income to Adj. EBITDA 1Q25 4Q24 3Q24 2Q24 1Q24 (in thousands) Net (loss) income $ (52,096) $ 129,906 $ 57,366 $ 53,005 $ 63,004 Excluding: Stock-based compensation expense and related payroll taxes (1) 63,573 68,155 69,292 74,717 70,683 Depreciation and amortization 2
Slide 27: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the Company's financia
Slide 28: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the Company's financia