Etsy could be a rebound candidate in the near-term if macro sentiment is able to be stable
Etsy $Etsy Inc(ETSY.US$, a marketplace operator, saw a robust growth in the first quarter of 2023, with revenue reaching $640.9 million, up from $579.3 million a year earlier. Their performance was boosted by an increased transaction fee, resulting in a take rate exceeding 20% for the second time in the company's history. A key highlight is the growth in active buyers in the US marketplaces, a trend unseen since the last quarter of 2021. The growth is attributed to efforts in personalization, aided by AI which provided more tailored search results.
Operating across many verticals, Etsy, along with its subsidiaries Reverb, Depop, and Elo7, maintains a unique position in the e-commerce sector. The platform has also seen its active buyer base increase to 96 million, roughly level with 2021 figures, thanks to its efforts in brand marketing, investment in platform search functionality, and better platform policing. Furthermore, Etsy's offsite advertisements serve as a lucrative means to enhance platform take rates, GMV growth, and seller inventory turnover. As Etsy continues to improve its platform, the company is likely to witness increased revenues from higher-priced products in the future.
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