Etsy relies on strategic investments for sustainable growth

Etsy repurchased shares worth $156 million in the third quarter, while $260 million remains available in the current buyback program. The company's CEO, Joshua Silverman, highlighted strategic actions Etsy is undertaking to drive Gross Merchandise Sales (GMS) growth during a recent earnings call. Etsy is adopting a targeted approach to product development to optimize customer experiences that have a sustainable impact on customer lifetime value and GMS. A key element here is the advancement of the Q-score in search, which significantly helps connect customers with their desired products. Additionally, the team is being expanded by hiring more app engineers and machine learning experts to further drive the growth initiative. For the current quarter, Silverman notes that the shortened and later-starting holiday season presents a challenge, with November and December being of central importance. The outcome of the U.S. elections could influence purchasing behavior in early November. A positive signal is the introduction of physical Etsy gift cards, which could lead to a medium-term increase in GMS, as this area currently accounts for less than one percent of total GMS.