Etsy, Inc. Canaccord Genuity's 46th Annual Growth Conference

Well, thank you. It is great to be here. It is good to be in Boston, and we really appreciate being included in your conference first thing in the morning. It is a super slot. Thanks for everybody showing up today, and we really appreciate your coverage.

Yeah. Well, it's been a great privilege to be at this company. It is a really exciting business. I'll tell you one of the big changes. When I joined, we had two other businesses that we have since sold. We've done about $1.5 billion in asset sales that have allowed us to raise capital to buy back stock. The real fruit of that has been allowing us to very much focus all of our attention on the Etsy marketplace, which has so much potential. I'm really excited about that. I joined a company that had a couple of different assets, and now we're very focused. We have a new CEO in Kruti Patel Goyal, who has been with Etsy for 16 years.

She was there in various service and product roles before going over to one of the businesses that we just sold in the U.K. called Depop, which is a clothing resale business. She took that business from sort of growing a little bit to growing really fast. In fact, by the time we sold it had gotten bigger for three successive years, and it was growing at over 100% a year. She did some magical work there. The work that she did there really was focused on the customer. She's come into Etsy and led the company through a really deep diagnostic of how are we doing with buyers and sellers, and this is what I'm most excited about. We've sort of realized that what Etsy stands for in the minds of both sellers and definitely buyers is kind of three key things.

There is a creativity, there is a level of craftsmanship, and there is a human connection at Etsy that you just don't see anywhere else in e-commerce. I think those characteristics in a day and age where people talk about what's going on with AI and the sort of technology exhaustion that we all feel, those things that separate Etsy really are at a human level. They really resonate. The whole company is very focused on how do we make those characteristics legible across everything that we're doing. As we're doing that, it's been very exciting, Maria, to see that a focus on those three things is not only improving some of the customer metrics, but it's just starting to influence the financial performance of the business in a favorable way.

What I'm really excited about is this company is very focused in a really big market. I guess, relative to my expectations coming in, gosh, I thought we would have those other assets, and we got a great price for them. I was certainly surprised by the bid that we got for the Depop business.

Right. When opportunity knocks, you got to answer the door, and we're really happy to have the focus we have on Etsy now.

Sure. For anybody who isn't aware, when we reported our earnings results last week, which were, I think, pretty good, we could talk about those, too. We also announced a reorganization in the company, and it meant that we are going to what we have separated with about 220 employees. Most of those people are in our product and engineering organization. It's our largest organization, so it's kind of natural that that's where the biggest place of change has been. Really, the rationale for that was not at all about cost performance. Our revenues are accelerating, and our margins are moving upward, and our free cash flow is great, and our balance sheet looks better and better. So this was not motivated by any kind of financial or business or secular urgency.