Etsy, Inc. (NASDAQ:ETSY) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:00 pm ET


Etsy, Inc. (NASDAQ:ETSY) Q4 2019 Earnings Conference Call - Final Transcript


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Joshua Silverman

Reverb, another very special marketplace, driving even more growth. Our full year GMS grew nearly 27%, and revenue grew almost 36% on a consolidated basis. And we had a very strong finish to the year. Etsy reported fourth quarter consolidated GMS up 33% to $1.7 billion, revenue up 35% to $270 million and consolidated adjusted EBITDA margins of approximately 23%. The core Etsy marketplace delivered strong growth with fourth quarter GMS up 20% year-over-year, revenue up 28% and our take rate reached 17.2%, all up from the high bar set in the prior year. We're proud to be one of the handful of companies simultaneously delivering very strong top line growth and EBITDA margins north of 20%. You've probably heard of the Rule of 40. It's an elite club. And heck, in 2019, we were Rule of 50. 2019 was a big year, and we've made meaningful strides in keeping commerce human.

When I reflect on our efforts, I'm really proud that our team tackles complex challenges head-on with boldness and urgency. I'm also inspired by the team's dedication to bringing world-class experiences for our customers. We do the hard things that set us up for success now and for years to come. We're hyper-focused on doing the fewest things that can make the greatest impact. For example, we enhanced the buying experience to capitalize on our unique and defensible right to win by making search more personalized, elevating human connections, improving trust and giving sellers a path for growth. Etsy's mission is incredibly relevant and powerful. We stand for something different. We are just getting started, leveraging our strengths in the $100 billion-plus available market we've identified for Etsy's special merchandise, pulling our growth levers of more active buyers, improved frequency and higher AOV. We've done of all of this while continuing to make strong progress on our economic, social and ecological impact pools, which are deeply integrated into all aspects of our business. We apply the same focus and discipline to our impact metrics as we do to our financial metrics. And together, they make us stronger and more resilient, which is why we now publish an integrated annual report, including both our financial and impact metrics. In that report, you'll see that in 2019, the Etsy marketplace drove over $6 billion in U.S. seller economic output and created 1.7 million jobs in the independent worker economy, enough to employ the entire city of Phoenix, Arizona, the fifth largest city in the U.S.

We continue to attract and retain world-class talent, strengthened through diversity, leading the industry in gender balance and exceeding our goal to double hiring for underrepresented minorities. And in 2019, we became the first global e-commerce company to offset 100% of our emissions from shipping with the introduction of carbon-neutral shipping in the Etsy marketplace. We believe being a great corporate citizen is an integral part of being a great business, and our results over the past year demonstrate that Etsy is leading from the