Etsy slips after its active buyer tally trails expectations

Etsy (NASDAQ:ETSY) reported revenue increased 3.0% year-over-year to $647.8 million and consolidated GMS was down 2.9% year-over-year and was 1.9% lower on a currency-neutral basis. The retailer noted that consolidated GMS included a small headwind from the divestiture of Elo7.

Active buyers increased 1.0% year-over-year to 91.5 million, which was largely flat on a sequential basis and below the consensus expectation. GMS per active buyer on a trailing twelve-month basis for the Etsy marketplace declined 3.2% year-over-year to $124 in the quarter. However, Etsy (ETSY) noted that trends continued to stabilize on a sequential basis. The number of habitual buyers was down 3.0% year-over-year to 6.9 million, although the retention rate of habitual buyers was slightly better on a year-over-year basis.

Consolidated non-GAAP adjusted EBITDA was $179.4 million, vs. $164.6 million consensus and $166.2 million last year.

On the balance sheet, Etsy (ETSY) ended the quarter with a cash position of $1.1 billion.

CEO update: “We are making excellent progress with other bold moves and investments meant to raise consideration among buyers – to help us stand apart more than ever. While this is a challenging environment for our type of goods, we are focused on reigniting Etsy marketplace growth and gaining market share.”

Looking ahead, Etsy (ETSY) estimates that consolidated GMS will decline in the low single digit range on a year-over-year basis in Q3. The retailer also sees an adjusted EBITDA margin of 27%.

Etsy (ETSY) also announced the retirement of CFO Rachel Glaser, she is expected to remain in her current role until a successor is appointed.

Shares of Etsy (ETSY) fell 1.37% in the after-hours session on Wednesday.