Etsy Earnings: A Little Bit of Progress
Here's our initial take on 's (NASDAQ: ETSY) fiscal 2025 second-quarter financial report.
Online marketplace Etsy is in turnaround mode as sales volumes on its platform decline. Etsy reported a 4.8% drop in gross merchandise sales in the second quarter, or a 2.6% drop excluding Reverb, which has been sold. The number of active buyers fell by 3.4% to 93.3 million, and the number of active sellers slumped 7.8% to 8.1 million.
While Etsy's marketplace is becoming a little less busy, there were two pieces of good news for investors. First, Etsy is successfully bumping up its take rate, which is the percentage of gross merchandise sales it takes as revenue. Etsy reported a take rate of 24% in the second quarter, up from 22% in the prior-year period, with revenue from ads the main growth driver. Second, Etsy's Depop fashion marketplace is thriving. Depop grew gross merchandise sales by 35.3% year over year in the second quarter to $249.6 million, putting the business on a $1 billion annual GMS run rate.
Source Fool.com
