Wed Apr 30 11:50:00 UTC 2025: ## Etsy Beats Revenue Estimates Despite Flat Sales, Stock Jumps

**NEW YORK, NY –** Etsy (NASDAQ: ETSY), the online marketplace for handmade and vintage goods, reported mixed first-quarter 2025 results, exceeding revenue expectations but falling short on earnings per share (EPS). While revenue reached $651.2 million, slightly above analyst projections of $642 million, it remained flat compared to the same period last year. The company reported a GAAP loss of -$0.49 per share, significantly lower than the anticipated -$0.47. Adjusted EBITDA, however, beat expectations at $171.1 million, representing a 26.3% margin.

Despite the mixed results, Etsy’s stock price surged 8.9% to $50.25 immediately following the announcement. CEO Josh Silverman attributed the positive adjusted EBITDA performance to “solid” results despite top-line pressure. The company’s Q2 2025 guidance anticipates a year-on-year decline in Gross Merchandise Sales (GMS) similar to or slightly better than Q1.

However, concerns remain. Etsy’s three-year compound annual growth rate (CAGR) of 6.1% is considered underwhelming compared to the consumer internet sector. Active buyers also declined by 1.61 million year-on-year to 94.78 million, raising questions about the platform’s ability to attract new customers. While average revenue per buyer (ARPB) increased by 2.5% year-on-year to $6.87, analysts predict flat revenue over the next 12 months.

While the first-quarter results showed some positive aspects, analysts at StockStory suggest that the long-term growth trajectory and overall business quality need to be considered before making investment decisions. A more detailed analysis is available in a free research report from StockStory.

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