Wed, Apr 30, 12:17 PM (13 days ago)
**Etsy, Inc. (ETSY) Q1 2025 Financial Summary** **Financial Performance:** - **Revenue:** $651.2 million, up 0.8% YoY. - **Gross Profit:** $459.1 million, up 0.1% YoY. - **Operating Expenses:** $481.4 million, up 23.2% YoY. - **Net Loss:** $52.1 million, down from a profit of $63.0 million YoY. - **Adjusted EBITDA:** $171.1 million, up 1.9% YoY. - **Cash and Cash Equivalents:** $867.7 million. **Key Metrics:** - **GMS (Gross Merchandise Sales):** $2.8 billion, down 6.5% YoY. - **Active Sellers:** 8.1 million, down 11.3% YoY. - **Active Buyers:** 94.8 million, down 1.7% YoY. **Operational Highlights:** - **Marketplace Revenue:** $458.5 million, down 1.8% YoY. - **Services Revenue:** $192.7 million, up 7.7% YoY. - **Revenue Take Rate:** 23.3%, up 170 bps YoY. **Cash Flow:** - **Operating Cash Flow:** $49.2 million, down 28.2% YoY. - **Investing Cash Flow:** -$20.7 million, down 17.8% YoY. - **Financing Cash Flow:** -$204.8 million, up 25.6% YoY. **Uncertainties and Future Operations Impact:** - **Macroeconomic Uncertainties:** Global economic conditions and geopolitical events may impact consumer spending and cross-border trade. - **Regulatory Risks:** Evolving regulations on data privacy, e-commerce, and marketplace operations could increase compliance costs and operational challenges. - **Competitive Landscape:** Intensifying competition from both online and offline retailers may pressure revenue growth and market share. - **Technological Challenges:** Rapid technological changes and cybersecurity threats require continuous investment in infrastructure and security measures. **Strategic Initiatives:** - **Growth Strategy:** Focus on building a sustainable competitive advantage for the Etsy marketplace, growing core geographies, and leveraging the marketplace playbook at Etsy and Depop. - **Investments:** Continued investment in technology infrastructure, product development, marketing, trust and safety, member support, and fostering engaged and impactful teams. - **Reverb Sale:** Agreement to sell Reverb for $105.0 million, subject to customary closing conditions, expected to close in the coming months. **Financial Health:** - **Liquidity:** Strong liquidity position with $867.7 million in cash and cash equivalents and $129.5 million in long-term investments. - **Debt:** $2.3 billion in outstanding convertible notes, with the ability to draw down on a $400.0 million senior secured revolving credit facility. **Conclusion:** Etsy faces a challenging macroeconomic environment with declining GMS and active user metrics. However, the company maintains a strong liquidity position and is focusing on strategic investments to drive future growth. The sale of Reverb and ongoing regulatory and competitive challenges will impact future operations and financial performance.