About Etsy

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers around the world. The company’s primary marketplace, Etsy.com, is the global destination for unique and creative goods made by independent sellers. The Etsy marketplace connects creative artisans and entrepreneurs with thoughtful consumers looking for items that are a joyful expression of their taste and values. The company’s sellers are the heart and soul of Etsy, and its technology platform allows its sellers to turn their creative passions into economic opportunity. The company offers Etsy.com sellers a marketplace with tens of millions of buyers along with a range of seller tools and services that are specifically designed to help its creative entrepreneurs generate more sales and scale their businesses. The Etsy, Reverb, Depop, and Elo7 marketplaces collectively connected a total of 7.5 million active sellers to 95.1 million active buyers as of December 31, 2022. The company’s top six retail categories on the Etsy marketplace in 2022 were homewares and home furnishings, jewelry and personal accessories, apparel, craft supplies, paper and party supplies, and toys and games. Toys and games replaced beauty and personal care in the company’s top six. Reverb provides a significant presence in the market for musical instruments, Depop extends the company’s apparel offering into the resale space, and Elo7 expands its geographic opportunity with a local brand in Brazil. The Etsy Marketplace Buyers come to the Etsy marketplace for meaningful, one-of-a-kind items handcrafted and curated with passion and expertise by the company’s creative entrepreneurs. The company boasts a large assortment of handmade, customized, personalized, vintage, and craft supply products from all over the world. As of December 31, 2022, there were more than 100 million items listed on the Etsy marketplace, and approximately 26% of its 2022 gross merchandise sales (GMS) was from custom or made-to-order merchandise. In 2022, 45% of Etsy sellers were located outside the United States, and 45% of the company’s gross merchandise sales (GMS) was generated between an Etsy seller, Etsy buyer, or both, located outside of the United States. The company’s platform makes it easy for Etsy buyers and sellers to interact across borders even if they do not speak the same language and wish to transact in different currencies. The company uses innovative machine translation technology to translate listings, reviews, Etsy Ads, and conversations between buyers and sellers. The company invests in localization, particularly within its core non-U.S. markets, to create a more localized experience, such as browse features and shipping filters, which has resulted in more sellers selling to buyers within their own country. In 2022, approximately 70% and 80% of GMS in the United Kingdom and Germany, respectively, was from domestic sales. As of December 31, 2022, 89.4 million buyers and 5.4 million sellers were active on the Etsy marketplace. The company’s mobile website and its Etsy mobile app for Etsy buyers (Buy on Etsy) include search and discovery, curation, personalization, augmented reality, and social shopping features. For the year ended December 31, 2022, approximately 66% of Etsy.com GMS was generated on a mobile device. Through product investments that drive buyers to its app, the company has been able to increase app downloads by 33% in 2022, which is beneficial to its conversion rate, as its mobile app has the highest conversion rate among devices. For the full year, the company’s Etsy App represented the largest single GMS contributor by device. The company’s platform is designed to provide a personalized search and discovery experience to Etsy buyers, curating search results and listings based on transaction and browsing history. The Reverb Marketplace Reverb Holdings, Inc. (Reverb), headquartered in Chicago, is a two-sided marketplace launched in 2013 on the principle that buying and selling musical instruments should be easy. Reverb connects buyers and sellers of new, used, and vintage music gear from all over the world, uniting music makers with the gear that inspires them. As of December 31, 2022, the company’s Reverb marketplace had 811 thousand active buyers and 229 thousand active sellers. Reverb’s buyers and sellers range from beginners looking for their first instruments to professional musicians expanding their gear collections, local music stores that use Reverb to do more business online, and the largest music retailers in the world that use Reverb to reach an even larger audience. Reverb’s unique characteristics include the depth and breadth of its sellers’ inventory, its range of sellers (including retailers, manufacturers, and individual sellers distributed across the globe), one of the largest musical instrument databases with historical pricing data in the world, and a large and passionate community of musicians and music gear lovers. In 2022, Reverb invested in optimizing conversion rate, delivering a more customized experience, and driving international growth. The Depop Marketplace Depop Limited (Depop), headquartered in London, is dedicated to building the world’s most diverse and progressive home of fashion. Depop operates as a community-powered fashion marketplace to buy and sell unique fashion, with approximately 30 million registered users. Depop had approximately 3.3 million active buyers and 1.8 million active sellers as of December 31, 2022. Approximately 92% of Depop’s GMS is in the apparel category. Depop is a place for anyone to discover and celebrate their style on their own terms and to feel good about their fashion choices by extending the lives of millions of garments. As of December 31, 2022, the majority of Depop’s users were Gen Z (the demographic cohort succeeding Millennials and known as ‘digital natives’ as they are the first social generation to have grown up with access to the internet and portable digital technology from a young age). The Elo7 Marketplace Elo7 Serviços de Informática S.A. (Elo7), known as the ‘Etsy of Brazil,’ is headquartered in São Paulo, Brazil. Elo7 specializes in custom and made-to-order merchandise, connecting approximately 53 thousand active sellers and 1.6 million active buyers as of December 31, 2022. Approximately 64% of Elo7’s GMS is from repeat buyers. Elo7's marketplace includes items in over 40 retail categories, with a significant amount of GMS from ‘special event and life moment’ categories. In 2022, Elo7’s top categories were parties and events, party favors, home decor, baby and kids, and weddings. Etsy Sellers The company serves creative artisans and entrepreneurs around the world who choose to pursue their passions, offering them excellent value compared with other channels they may have to sell their products, and a cohesive suite of powerful tools and services to help them run their business and drive sales. Its sellers range from hobbyists to professional merchants and have a broad range of personal and professional goals. Etsy Buyers The company’s marketplace supports a community of approximately 89 million buyers, who are looking to buy unique items directly from creative artisans and entrepreneurs. Its buyers are supporting creative artisans and entrepreneurs in their local communities and around the world. Strategy The company’s strategy is focused around building a sustainable competitive advantage - its ‘Right to Win'; growing the Etsy marketplace in its seven core geographies; and leveraging its marketplace playbook across its ‘House of Brands’. Seasonality Etsy.com sellers experience increased sales and use more Etsy services during the fourth-quarter (year ended December 2022) holiday shopping season. This has resulted in increased GMS and revenue for the company during the fourth quarter of each fiscal year. The company’s cost of revenue and marketing expenses also generally follow this trend, with the highest costs incurred in the fourth quarter of each fiscal year. Competition The company competes with companies that sell software and services to small businesses, enabling a seller to sell from her own website or otherwise run her business independently of its platforms, or enabling her to sell through multiple channels, such as BigCommerce, Wix, and Shopify. History Etsy, Inc. was founded in 2005. The company was incorporated in Delaware in 2006.

Country
Industry:
Computer programming, data processing, and other computer related services
Founded:
2005
IPO Date:
04/16/2015
ISIN Number:
I_US29786A1060
Address:
117 Adams Street, Brooklyn, New York, 11201, United States
Phone Number
718 880 3660

Key Executives

CEO:
Silverman, Joshua
CFO
Glaser, Rachel
COO:
Moskowitz, Raina