You must be aware that it is currently the time for every publicly-listed e-commerce company out there to post its first-quarter results. It is worth noting that Amazon and others have already posted their Q1 results and despite the economic slowdown, Amazon has done well thanks to the cost-cutting measures as well as the layoffs done at the company. We should also take note of the fact that e-commerce companies are not only fighting the economic situation but are also seeing the rise of AI-powered Chatbots such as ChatGPT and Google’s BARD which makes it even harder as the companies are looking to optimize their platforms with AI as much as possible.
Amidst all this, it is known that Etsy has posted an above-expected revenue figure for the first quarter of this year and they have also added new users to its platform meaning that their stocks have gained market value and were 11% higher than the previous day on market close. Etsy also reported a revenue of $640.9 million in Q1 2023 which is much higher compared to the $579.3 million it posted in Q1 2022. Apart from that, Etsy’s take rate has also increased to now being 20% after it implemented increase in transaction fee in April last year.
Etsy’s CFO Rachel Glazer said, “While we remain cautious on the broader macroeconomic climate, we are pleased to see positive trends in our first quarter 2023 buyer data, particularly the return to year-over-year growth in the Etsy marketplace’s active buyer base,”. Etsy also added in its presentation that the user base of the company’s active buyers grew in the US for the first time since Q4 2021. This is all thanks to the use of Generative AI to retarget the customers and provide them relevant search results as well as re-engaging its buyers through investments in personalization etc.
Apart from that, Etsy also provided the revenue estimates and other numbers for the second quarter of this year, which were all in line with the estimates by the analysts. It is expected, however, that the company will beat these estimates and is expected to close the gap in its shares which are down about 17% this year despite yesterday’s rise.