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Etsy’s ETSY shares tumble 19.7% year to date, trailing both the Zacks Retail and Wholesale sector and the Zacks Internet-Commerce industry’s 3.6% and 7.1% decline, respectively.
The company reported first-quarter 2025 earnings of 46 cents per share, which missed the Zacks Consensus Estimate by 8% and decreased 4.2% year over year.
On the other hand, first-quarter 2025 revenues increased 0.8% year over year to $651.2 million. The figure also exceeded the Zacks Consensus Estimate by 1.33%. This growth was primarily driven by strong on-site advertising revenues from both Etsy and Depop, a full quarter impact of the seller set-up fee and continued benefit from payments expansion.
Under its stock repurchase program, Etsy repurchased an aggregate of approximately $189 million or 3.7 million shares of its common stock in the first quarter of 2025.
Etsy, Inc. Price, Consensus and EPS Surprise
Etsy, Inc. price-consensus-eps-surprise-chart | Etsy, Inc. Quote
ETSY has a mixed earnings surprise history. The company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the remaining three, the average negative surprise being 6.78%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
ETSY’s Top-Line Details
Marketplace revenues were $458.5 million (70.4% of total revenues), down 1.8% from the year-ago quarter’s level. This decline was caused by a decrease in Gross Merchandise Sales (“GMS”), partially offset by higher payments revenues from Etsy and Depop, as well as increased seller setup fees, which were raised to $29 for new U.S. sellers.
ETSY acquired 4.8 million new buyers and the total number of active buyers on its marketplace was 88.5 million, which decreased 3.4% year over year.
Services revenues were $192.7 million (29.6% of total revenues), up 7.7% on a year-over-year basis.
ETSY’s Active User Base and GMS Decrease Y/Y
Etsy’s active buyer base decreased 1.7% from the prior-year quarter’s figure to 94.8 million. The figure beat the consensus mark of 94.4 million.
The active seller base was 8.1 million, down 11.3% year over year. The figure also missed the consensus mark of 8.9 million.
ETSY witnessed solid momentum in buyer reactivation. Reactivated buyers were a record 6.5 million, up 2.1% year over year.
Consolidated GMS of $2.8 billion was down 6.5% on a reported basis and 5.7% on a currency-neutral basis from the prior-year quarter. The reported figure also missed the Zacks Consensus Estimate by 0.04%.
The Etsy marketplace’s GMS was $2.3 billion, down 8.9% year over year on a reported basis and 8.1% on a currency-neutral basis.