From The Motley Fool · The Motley Fool Team · · 30s
Etsy Gains Momentum for Long-Term Investors
Etsy's AI-driven growth and buyer engagement signal strong long-term potential for investors.
In brief
Etsy's AI-driven growth and buyer engagement signal strong long-term potential for investors. Etsy's AI personalization and expanding buyer base drive gross merchandise sales growth for long-term investors. Originally reported by The Motley Fool.
Active Buyer Base Returns to Growth
Active buyers returned to year-over-year growth after two years, increasing 1% to 88 million users.
“Active buyers returned to year-over-year growth for the first time in two years, increasing 1% to approximately 88 million on a trailing 12-month basis.”
AI Boosts Gross Merchandise Sales
AI personalization directly increased gross merchandise sales by 2 percentage points annually.
“For example, by the third quarter, we estimate that personalization improvements alone contributed approximately 2 percentage points to our annualized year-over-year GMS growth rate.”
Marketing Efficiency Gains
Marketing spending grew faster than revenue, improving ROI for younger demographics.
“In the third quarter, we increased our marketing spending on a year-over-year basis, but the GMS from marketing grew faster than that. Our ROIs improved year over year on our marketing spending in the third quarter.”
Here's the gist
Etsy's AI personalization and expanding buyer base drive gross merchandise sales growth for long-term investors.
