Etsy, Inc. (NASDAQ:ETSY) Q2 2019 Earnings Conference Call Transcript
Aug 01, 2019 • 05:00 pm ET
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Q2 2019 Etsy Inc. Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.
It is now my pleasure to hand the conference over to Deb Wasser, Vice President of Investor Relations. You may begin.
Thank you. Good afternoon, and welcome to Etsy's Q2 conference call. Joining me today are Josh Silverman, CEO; and Rachel Glaser, Chief Financial Officer. Before we get started, just a reminder that our remarks today includes forward-looking statements relating to our financial guidance and key drivers thereof, anticipated marketing spend and other current and planned investments and their anticipated impact on our future financial results, anticipated product launches and impacts of experiments, including on conversion rates and the anticipated impact on our future financial results. Our actual results may differ materially.
Forward-looking statements involve risks and uncertainties, which are described in our press release, our 10-Q filed with the SEC on May 9, 2019, and subsequent reports that we file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we don't have any obligation to update them.
Also during the call, we present both GAAP to non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which you can find on our Investor Relations website. A link to the replay of this call will also be available there, and if you'd prefer to access the replay via phone, you can find that information in the press release as well. We have created a slide presentation to accompany today's opening remarks and recommend you follow along.
With that, I'll turn the call over to Josh.
Thanks, Deb, and good afternoon, everyone. It's been another encouraging quarter across the board, with continued growth in GMS driven by our portfolio of marketing and product investments. GMS drove increases in revenue and EBITDA and services revenue was solid, resulting in an overall steady take rate of 16.5%. We're making great progress improving our product experience and our marketing capabilities and it's paying off. In addition, we have a number of bold new initiatives which we're excited to walk you through, detailing how we expect them to fuel our growth even further.
First, let's dive into highlights of our second quarter progress, starting with marketing. We have a full funnel marketing approach, and in 2019, we've been optimizing our investments in every part of the funnel. In the first quarter, we paused our spend in certain channels in order to test their incrementallity and to refine our attribution model.
As a result of these tests, we entered the second quarter with an optimized portfolio and conviction around some of the new channels we tested. First, we ramped our spend on Google performance marketing, while maintaining and even increasing ROI, through efficiency and infrastructure improvements.
Second, we're making progress unlocking potential in