Etsy CEO says the company is seeing a new all-time high of active buyers
Etsy is an online marketplace focused on selling handmade or vintage items and supplies.Etsy CEO Josh Silverman discussed the company's earnings with CNBC's Jim Cramer. He explained how the e-commerce platform is trying to boost revenue by selling handmade or vintage items and supplies.
CNBC's Jim Cramer spoke with CEO Josh Silverman after Etsy reported its earnings on Thursday. He explained to Cramer how the company is trying boost revenue.
Silverman stated that Etsy had experienced "extraordinary gains" during the pandemic. "Unlike many other companies, Etsy has retained almost all of these gains," Silverman added. Etsy's next challenge is to prove that it can continue to grow despite the enormous gains made during the pandemic.
Etsy
CNBC's Josh Silverman spoke with CEO Josh Silverman about his company's earnings.
Jim Cramer
On Thursday, the company noted that the ecommerce platform had closed Q2 with an all-time record number of active buyers - just under 91 millions.
Etsy is an online marketplace where consumers can sell and buy handmade crafts.
Quarter better than expected
Thursday, after the close: both bottom and top lines beat expectations. According to Refinitiv, Etsy's $629 million revenue was higher than the $619 million consensus estimate. The platform provided weak third-quarter forecasts, which led to a stock drop of more than 12% on Thursday afternoon.
Silverman stated that Etsy had experienced "extraordinary gains" during the pandemic. "Unlike many other companies, Etsy has retained almost all of these gains," Silverman added. Etsy's next challenge is to prove that it can continue to grow despite the enormous gains made during the pandemic.
Etsy was fortunate to benefit from the pandemic, as it saw its
Revenues tripling
Silverman, in a conference call on Thursday, said that the company had seen "stiff macroeconomic headwinds" since then.
Silverman told Cramer Etsy's revenue growth is driven by its sellers, who are encouraged to succeed through tools such as pricing and promotion.
Silverman explained that "if you are a creator you can open an Etsy shop and sell your products to the entire world for just 20 cents." Silverman said, "There is no better place to be for creative entrepreneurs. We're seeing this."
Silverman added that the company also experiences strong growth internationally, and strong performances during holidays and special events. Silverman said that households with incomes over $100,000 spend more on Etsy. However, those with lower household incomes spend less.
Silverman stated, "We are doing everything we can to ensure that you have the best possible experience on Etsy." Etsy has 115,000,000 items for sale right now. Our job is to highlight the best of Etsy.
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