5 Revealing Analyst Questions From Etsy's Q4 Earnings Call

Etsy’s fourth quarter results were met with a positive market reaction, as the company’s profitability exceeded Wall Street expectations despite ongoing softness in buyer activity. Management attributed this outcome to operational improvements in its core marketplace, such as reorganizing around customer outcomes and investing in targeted marketing, particularly on social channels like TikTok. CEO Kruti Goyal emphasized that enhancements to Etsy’s mobile app and personalized marketing efforts are beginning to drive healthier engagement and retention, noting, “Our app is making it our most personalized and engaging platform.”

Is now the time to buy ETSY? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Etsy’s Q4 Earnings Call

• Trevor Young (Barclays): Asked about the durability of recent improvements in buyer reactivation. CFO Lanny Baker explained that product, app, and marketing investments have driven gradual, sustainable gains in reactivating lapsed buyers, with social media channels proving especially effective.
• Michael Morton (MoffettNathanson): Inquired about the impact of AI-driven agentic commerce on Etsy’s ad business. CEO Kruti Goyal responded that agentic channels are still small but show promise for high-value, high-intent discovery, and that Etsy Ads has further internal optimization opportunities.
• Rakesh Patel (Raymond James): Questioned strategies for acquiring younger buyers and reengaging lapsed customers. Baker highlighted increased TikTok investment and app-focused initiatives as main levers to attract and engage these demographics.
• Ken Gawrelski (Wells Fargo): Sought clarity on the competitive advantage of Etsy’s on-site search relative to agentic platforms. Goyal emphasized that Etsy’s data and personalization capabilities should enable a richer, intent-driven experience onsite versus third-party agents.
• Shweta Khajuria (Wolfe Research): Asked about risks that AI agents could disrupt Etsy’s take rates or business model. Goyal acknowledged uncertainty but stressed Etsy’s adaptability and early engagement with emerging platforms as mitigating factors.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be monitoring (1) the pace and impact of AI-driven personalization on buyer engagement, (2) the effectiveness of expanded marketing investments—especially in social channels and influencer partnerships—to attract younger and lapsed buyers, and (3) execution of reinvestment plans following the Depop sale. Additionally, we will watch for improvements in purchase frequency and signs that Etsy’s core marketplace can return to sustained growth.

Etsy currently trades at $53.44, up from $44.05 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.