Etsy starts search for new CFO; Q3 revenue jumps
Etsy Inc. announced a leadership change as it delivered a strong third quarter which saw a rise in the number of active buyers for the first time in two years.
The online marketplace operator said that CFO Lanny Baker will step down, effective March 1, 2027, to pursue opportunities outside Etsy. Baker is expected to remain as an advisor through July 1 to assist with the transition. The company has retained an executive recruiting firm to assist in the search for his successor, who is expected to be based in New York.
For its third-quarter, ended Sept. 30, Etsy’s net income rose to $853.5 million, or $1.55 a share. That's up from $75.5 million, or $0.63 a share, in the the year-ago quarter.
Total revenue increased 10.9% to $692.5 million, topping expectations of $680.6 million. Active buyers increased for the first time in two years, while the active sellers base grew at its fastest rate in two years, the company said.
Third-quarter gross merchandise sales rose 8.8% to $2.65 billion and per-buyer metric increasing 3.9%. The grown was the result of internal initiatives to increase average order value by improving search relevance, providing higher-quality items and capitalizing on special occasions, Etsy said.
Home and living saw strong growth during the quarter, largely driven by rugs, home décor and home improvement. The company also saw strong grown in back to school, including the launch of an exclusive collection of custom and monogrammed bedding pieces from sellers.
“We believe our improving performance reflects our progress not only in delivering a better shopping experience, but also in making Etsy’s unique value easier for buyers to discover and appreciate, and for sellers to want to be a part of,” Kruti Patel Goya, who took the reins as CEO in January, said in a letter to shareholders. “After three consecutive quarters of accelerating growth this year, I’m increasingly confident that our business isnow firmly in growth mode. We have sustainable momentum, and clear evidence that the changes we’ve made to how we operate and invest are strengthening our business and driving more durable performance.”
READ MORE: eBay acquires fashion resale platform Depop for $1.2B from Etsy
Etsy, which was founded in 2005, is headquartered in Brooklyn, N.Y.
