Social media market Etsy has released its Q2 results on Wednesday (July 27) in which the company reported 6 million new buyers and a 10% increase in its revenue even economic headwinds made things challenging.
The company said its rate of new buyers was still “meaningfully elevated” compared to pre-pandemic numbers.
Rachel Glaser, Etsy CFO, said the revenue for the quarter comes from changes the company has made, including a marketplace transaction fee increase, and adding Depop and Elo7 to its brand portfolio.
She cited the Etsy Ads product, which helps users optimize their ads to hit the right targets, as another example, touting it as a “great solution for sellers looking to grow their businesses.”
The performance of the company was impacted by several factors like ongoing geopolitical events, pressures on discretionary spending by consumers and foreign exchange rate volatility.
“Our second quarter results once again reflect that Etsy has maintained most of our pandemic gains, and that we are able to deliver strong bottom line performance while simultaneously investing in key initiatives,” said Josh Silverman, Etsy CEO. “Despite facing headwinds caused by macroeconomic and geopolitical factors, we believe the improvements we’ve driven in customer experiences across the Etsy marketplace and our House of Brands, coupled with continued focus on our ‘Right to Win’ strategy, will enable us to unlock the enormous long-term opportunities we see ahead.”
Silverman said there are numerous possible ways the rest of this year could go, “but all still point to very healthy profitability throughout.”
See also: Etsy Tumbles as Post-Pandemic Growth Slows, Pledges to Fight Retail’s ‘Sea of Sameness’
PYMNTS wrote in May that Etsy, after a “tidal wave of growth” during the pandemic, was slowing down, with a 60% drop in its stocks for Q1 this year.
The company was still growing, but the easing of pandemic restrictions had made it challenging for the company going forward.
Silverman was quoted as saying the company had still retained “more than 90%” of its gains from the past two years.
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