4 ms·

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.