Business
Etsy, Inc. Reports First Quarter 2025 Results
Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its first quarter ended March 31, 2025.
About this update from Etsy, Inc.
BROOKLYN, N.Y. , April 30, 2025 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its first quarter ended March 31, 2025. "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: "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: 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: Marketing Highlights: 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: 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 the United States , where it maintained its position as the fastest-growing online resale apparel platform 1 . Key drivers included: Consolidated Second Quarter 2025 Financial Guidance 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 Brooklyn, New York . 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 [email protected] Media Relations Contact: Kelly Clausen , Vice President, Communications & Community [email protected] 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. Currency-Neutral GMS We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non-U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates. As reported and currency-neutral GMS decline for the periods presented below are as follows: Non-GAAP Financial Measures Reconciliation of Net (Loss) Income to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin (in thousands, except percentages; unaudited) View original content: https://www.prnewswire.com/news-releases/etsy-inc-reports-first-quarter-2025-results-302441983.html SOURCE Etsy, Inc.