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I just checked their YOY earnings and Etsy has increased from 100 million to 600 million in revenue over the past 5 years, with 100 million in revenue growth ov

I just checked their YOY earnings and Etsy has increased from 100 million to 600 million in revenue over the past 5 years, with 100 million in revenue growth over the past year alone. Companies need to be shamed for potentially destroying people's lives while simultaneously reaping great rewards for their efforts.

wintogreen74 3y ago
the old joke about Amazon (which was never really true) was they lost pennies on every sale and made it up in volume. Anybody can grow revenue; the trick is to grow it faster than the cost of new revenue, and with a positive margin.
passwordoops 3y ago
I agree with your sentiment, but revenue isn't profit.
- dukeyukey 3y ago
  Where the money is going I'm more confused by. Like, Etsy is based on a well-understood, popular business model - provide a digitasl storefront to sell physical goods. There are no hard or unique problems - their main advantage is name recognition in the indie-maker community. So where is that money going?
  - bbor 3y ago
    A/B tests and their results. The industries biggest mistake…
  - passwordoops 3y ago
    Probably two or three key places: - They have nearly 3000 employees, which seems like way too many - Marketing and ads to increase reach and presence - Acquisitions (h/t to ojbyrne in this thread) Remember Uber was losing $2 billion a quarter, much of it going to pay for those reasons. Also I'm not sure how stock buybacks are accounted for, but Etsy did $290M in September according to this one chart: https://ycharts.com/companies/ETSY/stock_buyback https://ycharts.com/companies/ETSY/stock_buyback
  - ojbyrne 3y ago
    Goodwill impairment (writing down stupid acquisitions): https://news.ycombinator.com/item?id=38630475 https://news.ycombinator.com/item?id=38630475
    - missedthecue 3y ago
      But that's a non-cash expense.
  - lotsofpulp 3y ago
    > So where is that money going? To the previous shareholders of Depop and Elo7.
nine_zeros 3y ago
> Companies need to be shamed for potentially destroying people's lives while simultaneously reaping great rewards for their efforts. Better yet, stop using these services. But the long term solution is a legal change that ensures that the board of directors contains representation from employees along with share holders.
- apwell23 3y ago
  > Better yet, stop using these services. Can't think of any service that isn't "these" service.
  - nine_zeros 3y ago
    Private companies and mom & pop shops.
    - apwell23 3y ago
      They seem to be main ones showing up protesting any wage changes here in the city. recently https://chicago.eater.com/2023/8/22/23842186/evanston-chicago-tip-credits-one-fair-miniumum-wage-ordinance https://chicago.eater.com/2023/8/22/23842186/evanston-chicag... They were also against raising minimum wage.
- robertlagrant 3y ago
  If that representation is a minority then it doesn't matter. You can't solve overspending on staff by just keeping on spending, and that's likely what that representative will always advocate for.
freeplay 3y ago
Increased revenue != increased profits (or any profit at all) See: Uber

wintogreen74 3y ago

the old joke about Amazon (which was never really true) was they lost pennies on every sale and made it up in volume. Anybody can grow revenue; the trick is to grow it faster than the cost of new revenue, and with a positive margin.

passwordoops 3y ago

I agree with your sentiment, but revenue isn't profit.

dukeyukey 3y ago
Where the money is going I'm more confused by. Like, Etsy is based on a well-understood, popular business model - provide a digitasl storefront to sell physical goods. There are no hard or unique problems - their main advantage is name recognition in the indie-maker community. So where is that money going?
- bbor 3y ago
  A/B tests and their results. The industries biggest mistake…
- passwordoops 3y ago
  Probably two or three key places: - They have nearly 3000 employees, which seems like way too many - Marketing and ads to increase reach and presence - Acquisitions (h/t to ojbyrne in this thread) Remember Uber was losing $2 billion a quarter, much of it going to pay for those reasons. Also I'm not sure how stock buybacks are accounted for, but Etsy did $290M in September according to this one chart: https://ycharts.com/companies/ETSY/stock_buyback https://ycharts.com/companies/ETSY/stock_buyback
- ojbyrne 3y ago
  Goodwill impairment (writing down stupid acquisitions): https://news.ycombinator.com/item?id=38630475 https://news.ycombinator.com/item?id=38630475
  - missedthecue 3y ago
    But that's a non-cash expense.
- lotsofpulp 3y ago
  > So where is that money going? To the previous shareholders of Depop and Elo7.

nine_zeros 3y ago

> Companies need to be shamed for potentially destroying people's lives while simultaneously reaping great rewards for their efforts. Better yet, stop using these services. But the long term solution is a legal change that ensures that the board of directors contains representation from employees along with share holders.

apwell23 3y ago
> Better yet, stop using these services. Can't think of any service that isn't "these" service.
- nine_zeros 3y ago
  Private companies and mom & pop shops.
  - apwell23 3y ago
    They seem to be main ones showing up protesting any wage changes here in the city. recently https://chicago.eater.com/2023/8/22/23842186/evanston-chicago-tip-credits-one-fair-miniumum-wage-ordinance https://chicago.eater.com/2023/8/22/23842186/evanston-chicag... They were also against raising minimum wage.
robertlagrant 3y ago
If that representation is a minority then it doesn't matter. You can't solve overspending on staff by just keeping on spending, and that's likely what that representative will always advocate for.

freeplay 3y ago

Increased revenue != increased profits (or any profit at all) See: Uber