ETSY Q1 2025 Earnings

Call Details

• Call Title: Etsy, Inc. Q1 2025 Earnings Call
• Date: April 30, 2025 at 12:30 PM UTC
• Management Team:
  • Deb Wasser (VP of Investor Relations)
  • Josh Silverman (Chief Executive Officer)
  • Lanny Baker (Chief Financial Officer)
  • Kruti Patel Goyal (President and Chief Growth Officer)
  • Rafe Colburn (Chief Technology Officer)
  • Peter Semple (Interim CEO, Depop)

Call Summary

Financial Performance

• First quarter consolidated GMS was $2.8B, down approximately 6.5% year over year.
• Etsy Marketplace GMS declined 8.9% year over year and declined 8.1% on a currency neutral basis.
• Consolidated revenue was $651M, up approximately 1% year over year.
• Adjusted EBITDA was $171M, representing a 26.3% margin and improving 30 basis points year over year.
• Consolidated take rate improved to 23.3%, up 170 basis points versus the 21.6% reported in the same period last year.
• Consolidated product development spending was $111M and remained flat as a percentage of revenue.

Guidance

• The outlook excludes the Reverb transaction and assumes macro conditions remain roughly consistent for the remainder of the quarter.
• The company currently anticipates Q2 consolidated GMS will decline at a rate similar to, or potentially slightly better than, the Q1 year over year percentage decline.
• The company expects Q2 consolidated take rate to be similar to Q1's level of 23.3%.
• Consolidated adjusted EBITDA margin is expected to be approximately 25% for Q2, reflecting higher year-over-year marketing spend and increased people costs.
• Guidance assumes continued stacking of product and marketing initiatives through the year and does not include material tariff impacts from the Reverb sale.
• Management noted the outlook is sensitive to macro and tariff developments and will remain nimble if conditions change materially.