ETSY Inc (ETSY) 2020 Q2 法說會逐字稿

Hi, everyone. Welcome to Etsy's second quarter earnings conference call. I'm Deb Wasser, VP of Investor Relations. And joining me today are Josh Silverman, CEO; and Rachel Glaser, CFO; and Gabe Ratcliff, our Director of Investor Relations.

大家好。歡迎來到 Etsy 第二季度收益電話會議。我是投資者關係副總裁 Deb Wasser。今天加入我的是首席執行官 Josh Silverman；首席財務官 Rachel Glaser；和我們的投資者關係總監 Gabe Ratcliff。

Today's prepared remarks have been prerecorded. The slide deck has also been posted to our website for your reference. Once we are finished with Josh and Rachel's presentations, we will transition to a live video webcast Q&A session. Questions can be submitted via the Q&A window chat displayed on your screen. Feel free to use it at any time as it will remain open throughout the entire conference call. I'll be reading your questions, and Gabe will help me try to get to as many as we can.

今天準備好的發言已經預先錄製好了。幻燈片也已發佈到我們的網站供您參考。完成 Josh 和 Rachel 的演示後，我們將轉為現場視頻網絡直播問答環節。可以通過屏幕上顯示的問答窗口聊天提交問題。請隨時使用它，因為它將在整個電話會議期間保持打開狀態。我會閱讀您的問題，Gabe 會幫助我盡可能多地回答問題。

Please keep in mind that our remarks today include forward-looking statements related to our financial guidance and key drivers thereof, the impact of COVID-19 on our communities, business and strategy; marketing and product initiatives; our future financial results; anticipated investments in the timing and benefits of our seller initiatives; and the strategic benefit and impact on our financial performance of Reverb. Our actual results may differ materially. Forward-looking statements involve risks and uncertainties, which are described in our press release and our 10-Q filed with the SEC on May 7, and subsequent reports that we will file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we don't have any obligation to update them.

請記住，我們今天的評論包括與我們的財務指導及其主要驅動因素、COVID-19 對我們的社區、業務和戰略的影響相關的前瞻性陳述；營銷和產品計劃；我們未來的財務業績；對我們的賣方計劃的時間和收益的預期投資；以及 Reverb 的戰略利益和對我們財務業績的影響。我們的實際結果可能存在重大差異。前瞻性陳述涉及風險和不確定性，這些在我們的新聞稿和 5 月 7 日向美國證券交易委員會提交的 10-Q 以及我們將向美國證券交易委員會提交的後續報告中有所描述。我們在此次電話會議上所做的任何前瞻性陳述都是基於我們今天的信念和假設，我們沒有義務更新它們。

Also during the call, we'll present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which you can find on our IR website, along with a replay of this call.

同樣在電話會議期間，我們將介紹 GAAP 和非 GAAP 財務指標。今天的收益新聞稿中包含了非 GAAP 與 GAAP 措施的對賬，您可以在我們的 IR 網站上找到該新聞稿，以及本次電話會議的重播。

With that, I'll turn it over to Josh.

有了這個，我會把它交給喬希。

Thanks a lot, Deb, and hello, everyone. Etsy's mission is keeping commerce human, and we feel that, that mission is even more relevant today than it's ever been at a time when our sellers rely on income from Etsy to provide meaningful income for their families. And at a time when there are so many forces that are pulling us apart and dividing us, the opportunity to create human connection through commerce, we believe, is incredibly powerful and motivates us as a team every single day.

非常感謝，Deb，大家好。 Etsy 的使命是保持商業的人性化，我們認為，在我們的賣家依賴 Etsy 的收入為他們的家庭提供有意義的收入的時代，這一使命在今天比以往任何時候都更加重要。在有如此多的力量將我們分開和分裂的時代，我們相信，通過商業建立人際關係的機會非常強大，並且每一天都激勵著我們作為一個團隊。

I'm going to share with you some pretty exceptional financial results for the second quarter. But before I do that, I wanted to pause for just a second on our social impact goals because we're as proud of how we achieved these results as we are of the results themselves. We applied the same focus and accountability to our social impact goals as we do to the rest of our business because we believe very strongly that being a great corporate citizen makes us an even stronger business. And so for the past many years, we have been setting goals. We have been publicly announcing those goals and then we've been publicly reporting the results and progress towards those goals as part and parcel of our annual report, and we feel great about the progress we've made, although there's much more work to be done, and we think that, that's a big part of why we've been as successful as we've been in the second quarter and in prior quarters as well.

我將與您分享第二季度一些非常出色的財務結果。但在我這樣做之前，我想暫停一下我們的社會影響目標，因為我們為我們如何取得這些結果感到自豪，就像我們為結果本身感到自豪一樣。我們對我們的社會影響目標應用了與我們對其他業務相同的關注和責任，因為我們堅信，成為一名優秀的企業公民可以使我們成為一個更強大的企業。因此，在過去的許多年裡，我們一直在設定目標。我們一直在公開宣布這些目標，然後我們一直在公開報告這些目標的結果和進展，作為我們年度報告的一部分，我們對我們取得的進展感到非常高興，儘管還有很多工作要做完成了，我們認為，這就是我們在第二季度和前幾個季度取得成功的重要原因。

Sellers across the consolidated Etsy marketplaces sold $2.7 billion worth of merchandise in the second quarter, up 147% year-over-year. That resulted in $429 million of revenue and over $150 million of EBITDA. I'm proud to report that productivity across every team stayed very strong as our product and engineering teams shipped very innovative new product releases, our marketing teams achieved new levels of efficiency and our G&A organizations worked so hard to meet the surging buyer demand. But more than just fantastic financial results, these results underpin the incredible opportunity that Etsy has to meet so many different purchase occasions for so many different buyers. Of course, one of those purchase occasions was masks. In the second quarter, Etsy sold $346 million worth of masks and over 110,000 sellers sold at least 1 mask. These are really big numbers. It's hard to wrap your head around them.

合併後的 Etsy 市場的賣家在第二季度銷售了價值 27 億美元的商品，同比增長 147%。這帶來了 4.29 億美元的收入和超過 1.5 億美元的 EBITDA。我很自豪地報告說，由於我們的產品和工程團隊發布了非常創新的新產品，我們的營銷團隊實現了新的效率水平，我們的 G&A 組織努力滿足不斷增長的買家需求，因此每個團隊的生產力都保持非常強勁。但不僅僅是出色的財務業績，這些結果還為 Etsy 提供了難得的機會，可以滿足眾多不同買家的眾多不同購買場合。當然，其中一個購買場合是口罩。第二季度，Etsy 售出了價值 3.46 億美元的口罩，超過 110,000 名賣家至少售出了 1 個口罩。這些都是很大的數字。很難理解它們。

But to give you some sense of scale, that's enough masks to stretch all the way from New York to London. But the strength of the second quarter was about so much more than masks. In fact, nonmask sales grew 93% in the second quarter. That's an acceleration from the 79% that nonmask sales grew in the month of April. And while we added more sellers in the second quarter, GMS per active seller, nonetheless, grew by 15% year-over-year. So our sellers on average are becoming more and more successful. And the breadth and depth of different purchase occasions that buyers turned to Etsy for in the second quarter was truly breathtaking, spanning all of our top categories. If you need to furnish something for your new home office, why not get a custom-made desk made by a carpenter just for your size? If you're going to get something nice for the summer to wear, why not buy a beautiful linen dress direct from the craftsperson who made it at a really valued price. If you need a painting for your wall, why not get a personalized portrait of your pet? Even everyday goods like bread sold extremely well on Etsy.

但為了給你一些規模感，這些面具足以從紐約一直延伸到倫敦。但第二季度的實力遠不止面具那麼多。事實上，第二季度非口罩銷售額增長了 93%。與 4 月份非口罩銷售額增長 79% 相比有所加速。儘管我們在第二季度增加了更多賣家，但每個活躍賣家的 GMS 同比增長了 15%。因此，平均而言，我們的賣家變得越來越成功。買家在第二季度轉向 Etsy 的不同購買場合的廣度和深度確實令人嘆為觀止，涵蓋了我們所有的頂級類別。如果您需要為您的新家庭辦公室佈置一些東西，為什麼不買一張由木匠專門為您量身定制的辦公桌呢？如果你想買一件適合夏天穿的衣服，為什麼不直接從工匠那裡買一件漂亮的亞麻連衣裙，他們以超值的價格製作了它。如果您需要在牆上畫一幅畫，為什麼不為您的寵物畫一張個性化的肖像呢？即使是像麵包這樣的日常用品，在 Etsy 上也賣得非常好。

In fact, looking across our top categories, what you see is across each of our top categories, Etsy showed extremely strong growth. In our largest category of housewares and home furnishings, Etsy's sellers sold over $2 billion of merchandise over the last 12 months and over $700 million of merchandise in the second quarter alone, with growth rates of 128% year-over-year. And if you look at each of these categories, what you'll see is they're each individually very large categories. There are multibillion-dollar retailers who've built business focuses exclusively on each of these individual categories. Etsy is growing faster than most of them, and already from a very substantial position of scale.

事實上，縱觀我們的頂級類別，你看到的是我們每個頂級類別，Etsy 顯示出極其強勁的增長。在我們最大的家庭用品和家具類別中，Etsy 的賣家在過去 12 個月內售出了超過 20 億美元的商品，僅第二季度就售出了超過 7 億美元的商品，同比增長率為 128%。如果您查看這些類別中的每一個，您會發現它們各自都是非常大的類別。有數十億美元的零售商建立了專門針對這些單獨類別的業務。 Etsy 的增長速度超過了其中的大多數，並且已經處於非常可觀的規模位置。

And of course, that's just our top 6 categories. In fact, 25% of our GMS came from other categories that weren't even top 6, where Etsy sold about $600 million of GMS. And many of these are, in and of themselves, very large categories as well, like toys and games or pet supplies. So when you add it up, it speaks again to the extremely large addressable market that we believe we are facing. In fact, if you go back to our Investor Day in March of 2019, we made an attempt to size our TAM at that time. And what we said is, if you look at just our top 6 countries, and you assume that Etsy competes only in those top 6 countries. And then you make a second assumption, that online is a completely different market from off-line. And then you make a third assumption that special is distinct from everyday products. If you believe each of those 3 assumptions, the market opportunity for Etsy is $100 billion. But in fact, COVID has helped to explode each of those 3 assumptions.

當然，這只是我們的前 6 大類別。事實上，我們 25% 的 GMS 來自其他甚至不是前 6 名的類別，Etsy 在這些類別中銷售了大約 6 億美元的 GMS。其中許多本身也是非常大的類別，例如玩具和遊戲或寵物用品。因此，當你把它加起來時，它再次說明了我們認為我們面臨的極其龐大的潛在市場。事實上，如果你回到 2019 年 3 月的投資者日，我們當時試圖調整我們的 TAM。我們所說的是，如果你只看我們排名前 6 位的國家，並且你假設 Etsy 只在那些排名前 6 位的國家中競爭。然後你做出第二個假設，即線上是一個與線下完全不同的市場。然後你做出第三個假設，即特殊產品與日常產品不同。如果你相信這 3 個假設中的每一個，Etsy 的市場機會就是 1000 億美元。但事實上，COVID 已經幫助推翻了這 3 個假設中的每一個。

Etsy competes in almost every market in the world, not just the core 6. And in fact, the distinction between online and off-line has all been evaporated in the past few months. And we've learned that you can inject the special of Etsy into everyday purchases as well. Etsy's there for so many purchases for so many different people. So when we pull back and look at what we've learned over the past 3 months, it reinforces my belief that the size of Etsy's addressable market starts with a T, not with a B. All of this gives us even more conviction about the size of the prize that Etsy is chasing and the opportunity to invest to fully realize that growth. And obviously, revenues in the second quarter exploded so quickly that they surpassed our ability to reinvest efficiently in the second quarter alone, but we maintain our conviction that we should be investing given the early stage of our growth and the significant opportunity ahead of us. As one example, we made a commitment in 2018 to migrate to the cloud, and that took a significant investment of both money and time. But thankfully, the engineering team completed that migration on schedule in the first quarter of 2020, which allowed Etsy to realize the full opportunity of the second quarter of 2020. Without that investment, Etsy would be in a very different position today. And we're going to continue to make those investments that position Etsy to obtain its full potential for the future.

Etsy 幾乎在世界上每個市場都有競爭，而不僅僅是核心 6。事實上，在線和離線之間的區別在過去幾個月裡已經全部消失。我們還了解到，您也可以將 Etsy 的特色融入日常購買中。 Etsy 可以為很多不同的人購買很多東西。因此，當我們回顧過去 3 個月所學到的知識時，它強化了我的信念，即 Etsy 的潛在市場規模是從 T 開始的，而不是 B。所有這些讓我們更加相信Etsy 正在追逐的獎金規模以及為充分實現增長而進行投資的機會。顯然，第二季度的收入增長如此之快，以至於僅在第二季度就超過了我們進行有效再投資的能力，但我們仍然堅信，鑑於我們處於增長的早期階段以及擺在我們面前的重大機遇，我們應該進行投資。舉個例子，我們在 2018 年承諾遷移到雲端，這需要大量的金錢和時間投資。但值得慶幸的是，工程團隊在 2020 年第一季度按計劃完成了遷移，這讓 Etsy 實現了 2020 年第二季度的全部機會。如果沒有那筆投資，Etsy 今天的處境將大不相同。我們將繼續進行那些使 Etsy 能夠充分發揮其未來潛力的投資。

So where are we excited to invest for the future? It's in the same 4 areas we've been talking about for some time that collectively make up our right to win. I believe passionately that we are in the very early innings of unlocking the opportunity in each of these 4 areas. This is not about low-hanging fruit. There are meaningful opportunities to create step-function improvements in our customer experience that will position Etsy even better to be a meaningful part of our sellers' and our buyers' daily lives.

那麼，我們對未來的投資感到興奮嗎？我們討論了一段時間的 4 個領域共同構成了我們獲勝的權利。我堅信，我們正處於在這 4 個領域中釋放機會的早期階段。這不是唾手可得的果實。有很多有意義的機會可以在我們的客戶體驗中創造階梯式功能改進，這將使 Etsy 更好地成為我們賣家和買家日常生活中有意義的一部分。

Let's step through them one by one. Starting with search and discovery. In the prior quarters, I've geeked out with you a little bit on some of the machine learning algorithms where we've been making progress. And in the second quarter, we made even more progress getting even better algorithms. But let me talk about some of the user-facing features that are also really important in search and discovery. In the second quarter, we launched save searches, and that allows a buyer to declare a persistent interest and say that they want to learn more about this search over time. So each time they come back, they can see fresh results that are related to that search. Or we can e-mail them when there are new and exciting products or maybe products that have gone on sale that are related to that search. This makes the buyer experience better. It makes it fresher and importantly, it gives buyers more reasons to come back more often, and it tells us really important information about the buyers. Already, 8% of visitors have at least 1 saved search, and for a visitor that has a saved search, 11% of them have come back again to interact with that saved search, which we think is really encouraging given how very new this feature is.

讓我們一一過一遍。從搜索和發現開始。在之前的幾個季度中，我與您一起探討了一些我們取得進展的機器學習算法。在第二季度，我們取得了更大的進步，獲得了更好的算法。但讓我談談一些面向用戶的功能，這些功能在搜索和發現中也非常重要。在第二季度，我們推出了保存搜索，這讓買家可以表達持續的興趣，並表示他們希望隨著時間的推移了解更多關於該搜索的信息。因此，每次他們回來時，他們都可以看到與該搜索相關的新結果。或者，當有與該搜索相關的令人興奮的新產品或可能已經上市銷售的產品時，我們可以通過電子郵件向他們發送電子郵件。這使買家體驗更好。它使它更新鮮，重要的是，它讓買家有更多理由更頻繁地回來，它告訴我們關於買家的真正重要信息。已經有 8% 的訪問者至少保存了 1 個搜索，對於保存了搜索的訪問者，其中 11% 的訪問者會再次回來與保存的搜索進行交互，我們認為這確實令人鼓舞，因為這個功能非常新是。

Another area we've been promoting is favorites and lists. Buyers tell us that there are so many good things they find on Etsy that it's hard to organize them and to narrow down to make that final purchase decision. So we've been making favoriting and listing more visible and easier. And because of that, we've seen a meaningful uptick in favoriting and adding to lists. And this also gives us really valuable knowledge about the buyer so that we can deliver even more personalized results for them, and it allows buyers to have a better buying experience and often to share with others in a way that can create viral growth that we think is really encouraging for frequency and growth into the future.

我們一直在推廣的另一個領域是收藏夾和列表。買家告訴我們，他們在 Etsy 上找到了太多好東西，很難整理它們並縮小範圍以做出最終購買決定。因此，我們一直在使收藏和列表變得更加明顯和容易。正因為如此，我們已經看到收藏和添加到列表的有意義的上升。這也為我們提供了關於買家的真正有價值的知識，以便我們可以為他們提供更加個性化的結果，並讓買家擁有更好的購買體驗，並經常以我們認為可以創造病毒式增長的方式與他人分享對於未來的頻率和增長確實令人鼓舞。

Turning to human connections. The ability to tell the story of the seller and the story of the item is so powerful in differentiating the kinds of products for sale on Etsy. And in the second quarter, we launched the ability for sellers to upload videos of themselves and of their items, which make the buying experience richer and tell the story. And already, even though this feature has been live for only a few weeks, there are over 700,000 videos that have been uploaded. We're really excited to track the progress that this is going to make for our buying experience.

轉向人際關係。講述賣家故事和商品故事的能力在區分 Etsy 上銷售的產品種類方面非常強大。在第二季度，我們推出了賣家上傳他們自己和他們的商品的視頻的功能，這讓購買體驗更加豐富並講述了故事。而且，儘管此功能僅上線幾週，但已上傳了超過 700,000 個視頻。我們真的很高興能夠跟踪這將為我們的購買體驗帶來的進步。

Turning to a trusted shopping experience. We've talked a lot about our push into free shipping, and we're so happy that we pushed hard on free shipping in 2019 because we believe that it positioned us better for the current moment that we're in. In the second quarter, we launched bundles, which is the ability to see what other items a seller sells that might push the cart over $35, and therefore, qualify for free shipping. And we saw some meaningful uplift there that we think is really encouraging.

轉向值得信賴的購物體驗。我們已經談了很多關於推動免費送貨的事情，我們很高興我們在 2019 年大力推動免費送貨，因為我們相信它使我們在當前的時刻處於更好的位置。在第二季度，我們推出了捆綁包，這是一種查看賣家銷售的其他商品的能力，這些商品可能會使購物車超過 35 美元，因此有資格享受免費送貨。我們在那裡看到了一些有意義的提升，我們認為這確實令人鼓舞。

Next up for us is really working on setting appropriate expectations around when the item can arrive and helping to resolve issues proactively for buyers before they might even become serious issues. We learned a lot from the surgeon mask sales about what happens when a seller's sales surge, and how to anticipate and get ahead of potential issues in a way that supports the sellers and the buyers. And we're now starting to apply that to many other products in a way that we are really excited about to continue to deliver an even more trusted shopping experience.

我們接下來真正要做的是圍繞物品到達的時間設定適當的期望，並幫助買家在問題可能變得嚴重之前主動解決問題。我們從外科醫生面具銷售中學到了很多關於當賣家的銷售激增時會發生什麼，以及如何以支持賣家和買家的方式預測和解決潛在問題。我們現在開始將其應用於許多其他產品，我們非常高興能夠繼續提供更值得信賴的購物體驗。

And last but certainly not least, our sellers' collections of unique items. And in the second quarter, we launched augmented reality that allows a buyer to visualize a piece of wall art on their space, and wall art, by the way, is one of the most popular areas -- categories on Etsy. And unlike many other people who sell home furnishings and wall art, we don't get structured data from our sellers with specific dimensions. So we need to use machine learning to interpolate what we think the dimensions are and then show how that item will look on your wall. And it's a great example of the kind of investment that we at Etsy make because of our very unique kinds of inventory that we think are going to continue to differentiate us from other people whose primary source of inventory is products that map to a catalog.

最後但同樣重要的是，我們的賣家收藏的獨特商品。在第二季度，我們推出了增強現實技術，讓買家可以在他們的空間中想像出一幅牆壁藝術，順便說一下，牆壁藝術是最受歡迎的領域之一——Etsy 上的類別。與許多其他銷售家具和壁畫的人不同，我們不會從賣家那裡獲得具有特定維度的結構化數據。因此，我們需要使用機器學習來插入我們認為的尺寸，然後展示該物品在您的牆上的外觀。這是我們在 Etsy 進行投資的一個很好的例子，因為我們非常獨特的庫存類型，我們認為這將繼續使我們與其他主要庫存來源是映射到目錄的產品的人區分開來。

Collectively, we are so excited about the continued progress that our product team is making in differentiating the experience for buyers and for sellers in a way that we think is going to pay off for years to come. And all of that gets even richer when we do a better job telling the world about it. We continue to lean into all of our marketing investments, both higher funnel, like television as well as performance marketing in places like Google and Facebook. And we believe that they delivered very strong returns in the quarter even as we elevated the absolute dollar investments in those returns. We're also really starting to learn to use these new CRM tools so that as we gain more personalized information about our buyers, we're able to communicate with them through our owned channels and through our paid channels as well as on the site in ways that feel more and more personalized. And all of that makes us feel encouraged about what will happen with these buyers in the future.

總的來說，我們對我們的產品團隊在以一種我們認為將在未來幾年獲得回報的方式為買家和賣家提供差異化體驗方面取得的持續進步感到非常興奮。當我們更好地向世界宣傳時，所有這些都會變得更加豐富。我們繼續傾向於我們所有的營銷投資，包括更高的漏斗，如電視以及谷歌和 Facebook 等地方的績效營銷。我們相信，即使我們提高了對這些回報的絕對美元投資，他們在本季度也帶來了非常強勁的回報。我們也真正開始學習使用這些新的 CRM 工具，這樣當我們獲得更多關於買家的個性化信息時，我們能夠通過我們自己的渠道和付費渠道以及在網站上與他們溝通感覺越來越個性化的方式。所有這一切都讓我們對這些買家未來的發展感到鼓舞。

To sum up, we believe that Etsy is in the very early stages of an enormous opportunity for the Etsy marketplace and for the Reverb marketplace, which Rachel will talk about further. We couldn't be more excited about what the future holds and the progress that the team made in the second quarter.

總而言之，我們認為 Etsy 正處於 Etsy 市場和 Reverb 市場巨大機遇的早期階段，Rachel 將進一步討論這一點。我們對未來的發展以及團隊在第二季度取得的進展感到無比興奮。

And with that, I'll turn it over to Rachel.

有了這個，我會把它交給雷切爾。

Thanks, Josh, and hello, everyone. My commentary today will cover consolidated results as well as key drivers of performance, which include Etsy's stand-alone results where appropriate. You can find select details on Reverb's contributions in our press release and soon-to-be-filed 10-Q. I look forward to speaking to many of you soon in a less scripted format. But for today, with so many numbers to report, I'll be reading my prepared remarks.

謝謝，喬希，大家好。我今天的評論將涵蓋綜合結果以及績效的主要驅動因素，其中包括 Etsy 在適當情況下的獨立結果。您可以在我們的新聞稿和即將提交的 10-Q 中找到有關 Reverb 貢獻的部分詳細信息。我期待很快以一種不那麼照本宣科的方式與你們中的許多人交談。但就今天而言，有這麼多數字要報告，我將閱讀我準備好的評論。

Q2 is a spectacular quarter, breaking records for new highs in GMS, revenue and EBITDA. On a consolidated basis, Etsy's second quarter GMS grew 147% to $2.7 billion. Revenue grew 137% to $429 million, and we delivered adjusted EBITDA of nearly $151 million or margins of 35%. Both the Etsy stand-alone and Reverb marketplaces saw unprecedented growth in the second quarter, with Etsy and Reverb delivering $2.5 billion and $227 million in GMS, respectively.

第二季度是一個壯觀的季度，打破了 GMS、收入和 EBITDA 的新高記錄。在綜合基礎上，Etsy 第二季度的 GMS 增長了 147%，達到 27 億美元。收入增長 137% 至 4.29 億美元，我們實現了近 1.51 億美元的調整後 EBITDA 或 35% 的利潤率。 Etsy 獨立市場和 Reverb 市場在第二季度都實現了前所未有的增長，Etsy 和 Reverb 在 GMS 上的銷售額分別為 25 億美元和 2.27 億美元。

Q2 was unexpected in many ways. On our last earnings call, we outlined that with limited visibility, we thought GMS growth might decelerate in May and June from the highs seen in April. In fact, strong trends continued throughout the quarter. April GMS was up 136%, May was up 158% and June was up 142%. We saw those trends continue in July, which I'll talk about more when I get to guidance. Another point worth noting, particularly as you think about forecasting, while our overall results were very strong in Q2, we did experience significant volatility, mostly attributed to reopening and closing of local economies globally. For example, in the months of May and June, we had a high of 151% and a low of 109%.

Q2 在很多方面都出乎意料。在我們上次的財報電話會議上，我們概述了在可見度有限的情況下，我們認為 GMS 的增長可能會在 5 月和 6 月從 4 月的高點減速。事實上，強勁的趨勢在整個季度都在持續。 4 月 GMS 上漲 136%，5 月上漲 158%，6 月上漲 142%。我們看到這些趨勢在 7 月份繼續，我將在獲得指導時詳細討論。另一點值得注意，特別是當你考慮預測時，雖然我們在第二季度的整體業績非常強勁，但我們確實經歷了顯著的波動，這主要歸因於全球當地經濟的重新開放和關閉。例如，在 5 月和 6 月，我們有 151% 的高點和 109% 的低點。

Q2 was driven by growth in both marketplace and services revenue. Key drivers of growth were driven by an increase in GMS volume, Etsy payments and on-site advertising revenue. The launch of offsite ads has been a decisive success, both for our sellers and for Etsy. We began billing sellers in early May, so the marketplace revenue contribution from offsite ads only reflects a partial quarter. Thus far, there has been a very low level of opt out from sellers who have had that option and minimal churn from those required to participate. In all, as of the end of Q2, less than 2% of sellers had opted out of the program. Etsy Ads, our optional on-site ads program, previously referred to as Promoted Listings, continues to be a very successful seller service. Etsy Ads grew 94% year-over-year in Q2 and 60% sequentially versus Q1.

第二季度受到市場和服務收入增長的推動。增長的主要驅動因素是 GMS 交易量、Etsy 支付和現場廣告收入的增長。站外廣告的推出對我們的賣家和 Etsy 來說都取得了決定性的成功。我們從 5 月初開始向賣家收費，因此來自場外廣告的市場收入貢獻僅反映了部分季度。到目前為止，有選擇權的賣家選擇退出的比例非常低，需要參與的賣家流失率也很低。總的來說，截至第二季度末，只有不到 2% 的賣家選擇退出該計劃。 Etsy Ads 是我們可選的現場廣告計劃，以前稱為 Promoted Listings，仍然是一項非常成功的賣家服務。 Etsy Ads 在第二季度同比增長 94%，比第一季度增長 60%。

It's worth noting that Etsy Ads had its first $1 million day in July. Once offsite ads launched, the budgets for the former Google Shopping product were migrated to Etsy Ads, and those dollars have been put to work at higher efficiencies. The growth in Etsy Ads was modestly offset by a planned decrease in the number of promoted ads per page. Take rate declined 100 basis points sequentially. While the core business performed well, and our Offsite Ads drove significant incremental revenue, this was offset by a lower effective take rate on our on-site Etsy Ads product and to a lesser degree, some of our seller investments. As a reminder, to support our sellers during this difficult time, we made onetime investments, which totaled $12 million in Q2, which predominantly included waving off-site ads fees for a month and providing listings credit to some sellers. Another factor impacting Etsy Ads take rate was increased conversion rate from higher intent visitors searching and quickly finding things like face masks, which reduces page views. We also continue to grow our payments platform, another contributor to revenue growth in the quarter.

值得注意的是，Etsy Ads 在 7 月迎來了第一個 100 萬美元的交易日。站外廣告推出後，以前的 Google 購物產品的預算就轉移到 Etsy Ads 上了，這些錢已經以更高的效率投入使用。 Etsy Ads 的增長被計劃中每頁推廣廣告數量的減少所抵消。利率連續下降 100 個基點。雖然核心業務表現良好，而且我們的場外廣告帶來了顯著的增量收入，但這被我們現場 Etsy 廣告產品的較低有效採用率以及較小程度上的一些賣家投資所抵消。提醒一下，為了在這個困難時期支持我們的賣家，我們進行了一次性投資，在第二季度總計 1200 萬美元，其中主要包括免除一個月的站外廣告費和向一些賣家提供列表信貸。影響 Etsy 廣告採用率的另一個因素是更高意圖的訪問者搜索和快速找到諸如口罩之類的東西，從而減少了頁面瀏覽量，從而提高了轉化率。我們還繼續發展我們的支付平台，這是本季度收入增長的另一個貢獻者。

In Q2, we expanded Etsy Payments to 5 additional countries. Etsy Payments is now available in 43 countries across 19 currencies, processing 92% of our GMS. Gross margin was 74%, up 640 basis points compared to last year, primarily driven by our shift to Offsite Ads, which generated revenue growth without an equal offset in cost of revenue. Our Q2 adjusted EBITDA margins benefited from the significant and unprecedented top line growth we had in the quarter, a great proof point that our marketplace model is scalable and cash generative.

在第二季度，我們將 Etsy Payments 擴展到另外 5 個國家/地區。 Etsy Payments 現在可在 43 個國家/地區使用 19 種貨幣，處理我們 GMS 的 92%。毛利率為 74%，與去年相比增長了 640 個基點，這主要是由於我們轉向場外廣告所推動的，這產生了收入增長，但收入成本卻沒有得到同等的抵消。我們第二季度調整後的 EBITDA 利潤率受益於我們在本季度取得的顯著且前所未有的收入增長，這很好地證明了我們的市場模型具有可擴展性和現金生成能力。

Cost of revenue, G&A and product all declined as a percentage of revenue in the quarter. As a relatively young company, it's an enormous market opportunity in front of us. We believe we should more aggressively invest in growth and pursue our very clear road map. And as mentioned in the past, our revenue per employee is still meaningfully higher than our peers. Recent growth provides a unique opportunity for us to reinvest some of the incremental revenue rather than put it in the bank at flat yield. Etsy's philosophy is to focus investments on driving profitable growth, and Q2 margins of 35% demonstrate our long-term potential. To that end, during Q2, we increased our marketing investments to $115 million, significantly leaning into this moment where Etsy captured the world's attention, representing 27% of revenue. Note that as a percentage of sales, marketing spend was up 140 basis points compared to last year. Within that spend, performance marketing for the Etsy marketplace was $78 million and drove paid GMS to 21% of overall GMS. We believe we're gaining share in performance channels led by efficiency even at higher levels of investment. However, we are uncertain how this plays out. Currently, we are seeing substantial growth in conversion rate and impressions, and we can't predict that these trends will continue.

收入成本、G&A 和產品佔本季度收入的百分比均有所下降。作為一家相對年輕的公司，擺在我們面前的是一個巨大的市場機遇。我們認為我們應該更積極地投資於增長並追求我們非常明確的路線圖。正如過去所提到的，我們的人均收入仍然明顯高於同行。最近的增長為我們提供了一個獨特的機會，可以將部分增量收入進行再投資，而不是將其以固定收益存入銀行。 Etsy 的理念是將投資集中在推動盈利增長上，而 35% 的第二季度利潤率證明了我們的長期潛力。為此，在第二季度，我們將營銷投資增加到 1.15 億美元，明顯傾向於 Etsy 引起全世界關注的時刻，佔收入的 27%。請注意，與去年相比，營銷支出佔銷售額的百分比增加了 140 個基點。在這筆支出中，Etsy 市場的績效營銷為 7800 萬美元，並將付費 GMS 推高至整體 GMS 的 21%。我們相信，即使在更高的投資水平下，我們也在以效率為主導的績效渠道中獲得份額。但是，我們不確定結果如何。目前，我們看到轉化率和展示次數大幅增長，我們無法預測這些趨勢會持續下去。

For our new buyers and reactivated buyers, our newer cohorts, we're seeing LTV increase driven by higher frequency and an increasing AOV. These factors drive higher buyer lifetime value and enable us to spend deeper on marketing without reducing our ROI. Higher GMS per click on performance marketing and broader reach on television have also extended our marketing dollar. We've made substantial progress building toward a full-funnel marketing approach and continue to optimize our investments in each part of the funnel. From a more robust investment in TV and digital video at the top of the funnel, leveraging social more extensively in the mid and driving visits and conversion with performance marketing low in the funnel. Our new CRM stack is a key element in helping us dynamically target and acquire buyers with richer and more personalized content. All of these activities are early days, particularly outside of the U.S., where we continue to experiment with mid- and upper-funnel marketing in places like the U.K. and Germany.

對於我們的新買家和重新激活的買家，我們的新隊列，我們看到 LTV 增加是由更高的頻率和增加的 AOV 驅動的。這些因素推動了更高的買家生命週期價值，並使我們能夠在不降低投資回報率的情況下更深入地進行營銷。效果營銷的每次點擊 GMS 更高，電視覆蓋面更廣，這也增加了我們的營銷支出。我們在建立全漏斗營銷方法方面取得了實質性進展，並繼續優化我們在漏斗每個部分的投資。通過在漏斗頂部對電視和數字視頻進行更強勁的投資，在漏斗中部更廣泛地利用社交媒體，並通過漏斗低端的績效營銷來推動訪問和轉化。我們新的 CRM 堆棧是幫助我們動態定位和獲取具有更豐富和更個性化內容的買家的關鍵要素。所有這些活動都處於早期階段，尤其是在美國以外的地區，我們繼續在英國和德國等地嘗試中上層漏斗營銷。

Many of our key operating metrics for the Etsy marketplace were significantly higher in the second quarter than any other period since we've been a public company. This signals the dynamic nature of our business model, scalability of our sellers' inventory and the power of our brand and what we stand for. In the second quarter, active buyers grew 39% to 16 million for the Etsy Marketplace, and repeat buyers grew 51% to 26 million. Buyers on the platform with only a mask sale were approximately 7% of the buyers in the Etsy marketplace or 4 million. So while mask sales were a tailwind for growth, our core business is performing exceptionally well. GMS per active buyer on a trailing 12-month basis grew 4.8% year-over-year, higher than the record growth reached last quarter, driven in part by habitual buyers growing 64% year-over-year. Excluding masks, GMS per active buyer was up 5.9% in Q2, and 7.3% on a 2-year basis.

我們 Etsy 市場的許多關鍵運營指標在第二季度明顯高於我們成為上市公司以來的任何其他時期。這標誌著我們商業模式的動態特性、我們賣家庫存的可擴展性以及我們品牌的力量和我們的立場。第二季度，Etsy Marketplace 的活躍買家增長了 39%，達到 1600 萬，回頭客增長了 51%，達到 2600 萬。該平台上僅出售口罩的買家約佔 Etsy 市場買家的 7%，即 400 萬。因此，雖然口罩銷售是增長的順風，但我們的核心業務表現異常出色。在過去 12 個月的基礎上，每個活躍買家的 GMS 同比增長 4.8%，高於上一季度創下的創紀錄增長，部分原因是習慣性買家同比增長 64%。不包括口罩，第二季度每個活躍買家的 GMS 增長了 5.9%，兩年增長了 7.3%。

On a consolidated basis, including Reverb, percent international GMS contracted 400 basis points sequentially to 32% of overall GMS, as a greater percentage was driven by U.S. domestic buyers. International GMS was up over 100% and was driven in part by our international domestic trade group, which is GMS between sellers and buyers located in the same country. New buyers and reactivated buyers are expanding as a percentage of our overall buyers and were up 162% year-over-year. In the second quarter, we acquired nearly 12 million new buyers compared to 19 million in all of 2019, and reactivated 7.2 million buyers. Our existing buyer segment also grew 124% year-over-year. Repeat purchase rate was 45% in Q2, up 520 basis points sequentially. nonmask buyers had a disproportionate impact on frequency compared to mask buyers as GMS for nonmask items was up 93% year-over-year in the second quarter, as Josh mentioned.

在合併的基礎上，包括 Reverb 在內，國際 GMS 的百分比連續收縮 400 個基點，佔整體 GMS 的 32%，因為更大的百分比是由美國國內買家推動的。國際 GMS 上漲超過 100%，部分是由我們的國際國內貿易集團推動的，該集團是位於同一國家的賣家和買家之間的 GMS。新買家和重新激活的買家占我們整體買家的比例正在擴大，同比增長 162%。在第二季度，我們獲得了近 1200 萬新買家，而 2019 年全年為 1900 萬，並重新激活了 720 萬買家。我們現有的買家群體也同比增長了 124%。第二季度重複購買率為 45%，環比上升 520 個基點。與口罩買家相比，非口罩買家對頻率的影響不成比例，因為正如喬希所說，第二季度非口罩商品的 GMS 同比增長 93%。

Our internal data shows that getting new buyers to their fourth purchase is generally an inflection point for repeat purchases. In the second quarter, 9.6% of new and reactivated buyers made 4 or more purchases across 2 or more categories. This metric nearly doubled compared to last year, and is really encouraging, and a strong indication that we have a high probability of retaining these buyers. Currently, our newer cohorts are performing better than our older cohorts, but this is an unusual time with fewer options for buyers. And with so much uncertainty about current and future macro conditions, we're not asserting that these newer cohorts will continue to outperform. However, we do feel confident that these cohorts will be at least as good as any cohort we ever acquired. In fact, if you look at Slide 30 you can see that our historical cohort trends have been extraordinarily reliable and predictable, driving a very steady recurring annuity of GMS in our base business that has gradually improved with product and marketing plans. You can see a clear inflection point starting in April of this year, reflecting the significant growth in new and reactivated buyers and increasing frequency. Our work going forward is very focused on engaging and retaining these new cohorts.

我們的內部數據顯示，讓新買家進行第四次購買通常是重複購買的轉折點。在第二季度，9.6% 的新買家和重新激活的買家在 2 個或更多類別中進行了 4 次或更多次購買。與去年相比，該指標幾乎翻了一番，這確實令人鼓舞，並且強烈表明我們很有可能留住這些買家。目前，我們較新的群體比我們的老群體表現更好，但這是一個不尋常的時期，買家的選擇較少。由於當前和未來的宏觀環境存在如此多的不確定性，我們並不能斷言這些較新的群體將繼續表現出色。然而，我們確實相信這些隊列至少會和我們獲得的任何隊列一樣好。事實上，如果您查看幻燈片 30，您會發現我們的歷史隊列趨勢非常可靠和可預測，推動我們基礎業務中 GMS 的非常穩定的經常性年金，隨著產品和營銷計劃的逐步改善。從今年 4 月開始，您可以看到一個明顯的拐點，反映出新買家和重新激活買家的顯著增長以及頻率的增加。我們未來的工作重點是吸引和留住這些新群體。

We have seen some interesting GMS dynamics as geographies impacted by COVID began to reopen. This slide shows 2 examples: first, in France, we experienced a decrease in the repeat purchase rate and reopenings commenced; but metrics in a state like Texas that reopened for a short period remains strong, though a bit choppy. Not surprisingly, mask trends have generally held up or even accelerated in some locations as economies reopen. So it's important to keep in mind that macro conditions are very volatile and hard to predict.

隨著受 COVID 影響的地區開始重新開放，我們看到了一些有趣的 GMS 動態。這張幻燈片顯示了 2 個例子：首先，在法國，我們的重複購買率下降了，並且開始重新開業；但是像得克薩斯州這樣短期重新開放的州的指標仍然強勁，儘管有點起伏不定。毫不奇怪，隨著經濟重新開放，戴口罩的趨勢在某些地方普遍保持甚至加速。因此，重要的是要記住宏觀條件非常不穩定且難以預測。

A moment on Reverb, which also had a great Q2 with strong and stable performance throughout the quarter, featuring high-growth in the U.S. and internationally as well. In addition to its traditional appeal to musicians and the music aficionados, Reverb became an important online channel for many sellers and has expanded its reach as a place for new gear and novice buyers. Reverb has built significant value in the marketplace over the past year, but like Etsy, is in the early innings of realizing its true potential. Effective this week, Reverb has increased its seller transaction fee from 3.5% to 5%, and will utilize the incremental revenue to invest in marketing, customer engagement and seller tools and services. We believe the changes to Reverb's pricing model and incremental investments will unlock significant growth opportunities and serve as a foundation to build on for the future. As of 6/30, we had over $1 billion of cash, cash equivalents and short-term investments in addition to $200 million revolver that's currently undrawn. We have a capital-light business model with minimal CapEx and marginal working capital needs, and we believe we can continue to convert a very high percentage of our adjusted EBITDA into free cash flow.

回顧一下 Reverb，它在第二季度也表現出色，整個季度表現強勁而穩定，在美國和國際市場都實現了高速增長。除了對音樂家和音樂愛好者的傳統吸引力之外，Reverb 已成為許多賣家的重要在線渠道，並擴大了其作為新設備和新手買家的地方的影響力。 Reverb 在過去一年中在市場上創造了巨大的價值，但與 Etsy 一樣，它正處於實現其真正潛力的早期階段。從本週開始，Reverb 將其賣家交易費用從 3.5% 提高到 5%，並將利用增加的收入投資於營銷、客戶參與以及賣家工具和服務。我們相信，Reverb 定價模式的變化和增量投資將釋放重要的增長機會，並為未來奠定基礎。截至 6 月 30 日，我們擁有超過 10 億美元的現金、現金等價物和短期投資，此外還有 2 億美元的循環存款目前未動用。我們擁有輕資本業務模式，資本支出和邊際營運資金需求最低，我們相信我們可以繼續將調整後的 EBITDA 的很大一部分轉化為自由現金流。

Finally, let me discuss our outlook for Q3. This year has been anything but predictable, so we caution you to remember the potential headwinds we called out in the past and that appear in our slide presentation on factors impacting the business. We currently estimate GMS for Q3 in the range of $2.2 billion to $2.5 billion, which is up 80% to 110% compared to Q3 of last year. Revenue of $366 million to $426 million, up 85% to 115% versus last year, and adjusted EBITDA of $111 million to $127 million, with a margin in the range of 28% to 32%. Our margin guidance reflects our strong conviction that Etsy has significant opportunities for further growth and that investments in technology, marketing, product and people will yield both near- and long-term benefit. We have started ramping our investments this quarter, but they'll take some time to fully impact the P&L. Our Q3 margin guidance is modestly higher than we want it to be, if we were able to flip the switch and have all resources onboarded at once. We expect Q4 and 2021 margin guidance will reflect more of the impact of the increased pace of hiring.

最後，讓我談談我們對第三季度的展望。今年是不可預測的，因此我們提醒您記住我們過去提到的潛在逆風，這些逆風出現在我們關於影響業務的因素的幻燈片演示中。我們目前估計第三季度的 GMS 在 22 億美元至 25 億美元之間，與去年第三季度相比增長了 80% 至 110%。收入為 3.66 億美元至 4.26 億美元，比去年增長 85% 至 115%，調整後的 EBITDA 為 1.11 億美元至 1.27 億美元，利潤率在 28% 至 32% 之間。我們的利潤率指引反映了我們堅信 Etsy 擁有進一步增長的重要機會，並且對技術、營銷、產品和人員的投資將產生近期和長期利益。本季度我們已經開始增加投資，但它們需要一些時間才能完全影響損益表。如果我們能夠翻轉開關並立即啟用所有資源，我們的第三季度利潤率指導略高於我們的預期。我們預計第四季度和 2021 年的利潤率指引將更多地反映招聘速度加快的影響。

In addition, here are a few insights to help you with your models. Our GMS guidance for Q3 implies a deceleration in top line growth, mainly due to lapping the Reverb acquisition on August 15, which added approximately 20 percentage points to growth in the second quarter. We still expect Reverb to achieve breakeven adjusted EBITDA margin exiting 2020, as their incremental transaction fee revenue is mostly offset by stepped-up investments. We'll also be lapping the introduction of Etsy's free shipping initiative, which resulted in higher GMS, as sellers incorporated a portion of the cost of shipping into the item price. At the midpoint of our Q3 guidance, revenue will increase 100%, and we expect Etsy's consolidated take rate for the second half of the year to be approximately 16.9%.

此外，這裡有一些見解可以幫助您建立模型。我們對第三季度的 GMS 指引暗示收入增長放緩，這主要是由於 8 月 15 日完成了對 Reverb 的收購，這使第二季度的增長增加了約 20 個百分點。我們仍然預計 Reverb 將在 2020 年實現調整後的盈虧平衡 EBITDA 利潤率，因為他們增加的交易費用收入大部分被增加的投資所抵消。我們還將採用 Etsy 的免費送貨計劃，這會導致更高的 GMS，因為賣家將一部分運費計入了商品價格。在我們第三季度指引的中點，收入將增長 100%，我們預計 Etsy 下半年的綜合收入率約為 16.9%。

As we execute our strategy, invest in our seller success and make investments to drive growth, we believe we can capture more of our addressable market opportunity. And before I close, a quick shout out to Etsy's amazingly talented and dedicated team, who are working hard to deliver this growth.

當我們執行我們的戰略，投資於我們的賣家成功並進行投資以推動增長時，我們相信我們可以抓住更多可尋址的市場機會。在我結束之前，快速向 Etsy 才華橫溢、敬業奉獻的團隊大聲疾呼，他們正在努力實現這一增長。

I'll now turn the call over to Deb, so we can take your questions.

我現在將電話轉給 Deb，以便我們回答您的問題。

Great. Thanks, Rachel. Hi, everyone. So we're now going live. We have plenty of questions in the queue, so I'm not going to give it any time to take any more. If you want to put a question in, we'll try to get them as well, but we really have plenty already. So the first one, I'm going to turn to today is from Ed Yruma from KeyBanc. So Ed wants to know if we can talk about the mask business intra-quarter and exiting the quarter. Do we see a pickup as COVID impacted Southern states, and has demand softened as masks have become more widely available?

偉大的。謝謝，雷切爾。大家好。所以我們現在要上線了。隊列中有很多問題，所以我不會再給它任何時間。如果你想提出問題，我們也會嘗試讓他們參與進來，但我們已經有很多了。所以我今天要談的第一個是來自 KeyBanc 的 Ed Yruma。所以 Ed 想知道我們是否可以在本季度內和退出本季度時討論口罩業務。隨著 COVID 對南部各州的影響，我們是否看到了回升，並且隨著口罩的普及，需求是否有所減弱？

I'm happy to start with that. Yes. I mean, I guess what I would say about masks is that it's continued to be very volatile. The primary observation we have is that when government agencies like the CDC in the United States or similar agencies in international markets recommend mask usage, we do see a material increase in mask usage, a spike in masks purchases around that time. But it does tend to fluctuate state to state, county to county, country to country, to the point that it's pretty volatile and frankly, quite hard to predict. So we've tried very hard this quarter and even last quarter to break out mask sales because we know that you might want to model those differently as you think forward. It's just really hard to have a crystal ball around what's going to happen with it in the future.

我很高興以此開始。是的。我的意思是，我想關於口罩我想說的是它的價格一直很不穩定。我們的主要觀察是，當美國疾病預防控制中心等政府機構或國際市場上的類似機構推薦使用口罩時，我們確實看到口罩使用量大幅增加，大約在那個時候口罩購買量激增。但它確實傾向於在州與州、縣與縣、國家與國家之間波動，以至於它非常不穩定，坦率地說，很難預測。因此，我們在本季度甚至上個季度都非常努力地突破面具銷售，因為我們知道您可能希望按照您的想法對這些進行不同的建模。很難預測未來會發生什麼。

Okay. Great. Thanks, Josh. Next question comes from Rick Patel at Needham. Can you talk about what your sellers are saying about Offsite Ads and what gives you confidence that they see the value in paying the fee in order to see higher conversion? Do you expect to be more aggressive with this going forward in light of your momentum?

好的。偉大的。謝謝，喬希。下一個問題來自 Needham 的 Rick Patel。您能否談談您的賣家對站外廣告的看法，以及是什麼讓您相信他們看到支付費用的價值以實現更高的轉化率？鑑於您的勢頭，您是否希望在這方面更加積極進取？

I'm happy to start, and then maybe Rachel, if you want to follow-on. We're really pleased with the response from Offsite Ads. As Rachel said, we have about a 2% opt-out rate right now. And what that indicates to us is that sellers are really seeing the value in the program, and frankly, we think they should because we think it's a really valuable program for them. The return on ads spend is terrific. If you look at 12% or 15% of revenue being spent on performance marketing, that benchmarks really well to what a seller would normally have to spend if they were marketing their own website. But in addition to that, we take the risk. So if a seller were normally marketing their own website, they would typically pay-per-click and be on the hook as to whether or not that sale converted. So as that program has really rolled out and sellers have had a chance to experience it, I think they are seeing firsthand that it is, in fact, really good value. And sentiment continues to improve. And so we're happy with how the program is going and the value that it's delivering.

我很高興開始，然後是 Rachel，如果你想繼續。我們對 Offsite Ads 的回應非常滿意。正如 Rachel 所說，我們現在的選擇退出率約為 2%。這向我們表明，賣家確實看到了該計劃的價值，坦率地說，我們認為他們應該這樣做，因為我們認為這對他們來說是一個非常有價值的計劃。廣告支出的回報非常可觀。如果您將 12% 或 15% 的收入用於績效營銷，那麼這非常符合賣家在營銷自己的網站時通常必須花費的費用。但除此之外，我們還承擔了風險。因此，如果賣家通常營銷他們自己的網站，他們通常會按點擊次數付費，並且對銷售是否轉化負責。因此，當該計劃真正推出並且賣家有機會體驗它時，我認為他們親眼目睹了它實際上非常物有所值。情緒繼續改善。因此，我們對該計劃的進展情況及其提供的價值感到滿意。

And I think the only thing I'd add there is that just remember for your models that we didn't start billing on Offsite Ads until May. So there was a month this -- the quarter that didn't include any of the incremental revenue from that. And the other little fact I'd put in there is that we have very well researched and worked with sellers to gauge how -- what their appetite was going to be for this product and how it would be received. And so it didn't roll out without noise. It just rolled out with the level of noise we had expected or slightly better than that. And so -- and the churn and opt-out rates speak for themselves. So 98% in is something that we feel pretty good about.

我認為我唯一要補充的是，請記住，對於您的模型，我們直到 5 月才開始對場外廣告計費。所以有一個月——這個季度不包括任何由此產生的增量收入。我要說的另一個小事實是，我們已經對賣家進行了很好的研究並與他們合作，以衡量他們對這種產品的胃口是什麼，以及它會如何被接受。因此，它並非無聲無息地推出。它剛剛以我們預期或略好於預期的噪音水平推出。因此——流失率和選擇退出率不言自明。所以 98% 是我們感覺很好的東西。

Great. Thanks, Josh and Rachel. Okay. (inaudible) from Jefferies. Okay. Etsy realized 18% operating leverage and had its highest ever quarterly EBITDA margin despite expanding marketing spend by nearly 150%, has a high level of scale and efficiencies that were achieved in Q2 increased your outlook for 30% or greater EBITDA margins by 2023? Or what's your view on margin potential over the long term?

偉大的。謝謝，喬希和雷切爾。好的。 （聽不清）來自 Jefferies。好的。儘管營銷支出增加了近 150%，但 Etsy 實現了 18% 的運營槓桿並創下有史以來最高的季度 EBITDA 利潤率，第二季度實現的高水平規模和效率是否增加了您對到 2023 年 30% 或更高 EBITDA 利潤率的預期？或者您對長期利潤率潛力有何看法？

You want me to start, Josh? And then you can follow-on.

你想讓我開始嗎，喬什？然後你可以繼續。

Go for it.

去吧。

So first of all, we gave guidance for Q3 and didn't even give guidance for Q4. So you can tell we're being cautious about where -- the future is unpredictable, and we're definitely not giving 2021 guidance or guidance beyond 2021. And the guidance that we gave for Q3, by the way, is a pretty wide range. And we get a 30-point range on GMS. So -- and we talked about a lot of volatility. When we gave long-term guidance, though, I will say that we gave an average -- on average and over time, those were the rates that we would be at. And we also, as Josh just mentioned a couple of questions ago, we took -- several times, we've called out how to think about masks sales, which are probably a nonrecurring. Now it may be part of our life for quite some time, but it's probably nonrecurring into perpetuity, we hope. And so when you think about long term, you might want to think about backing those numbers out of your models to look at what our base business would do.

所以首先，我們給出了第三季度的指導，甚至沒有給出第四季度的指導。因此，您可以看出我們對哪些方面持謹慎態度——未來是不可預測的，我們絕對不會提供 2021 年的指導或 2021 年以後的指導。順便說一下，我們為第三季度提供的指導範圍很廣.我們在 GMS 上獲得了 30 分的範圍。所以——我們談到了很多波動性。不過，當我們給出長期指導時，我會說我們給出的是平均水平——平均而言，隨著時間的推移，這些就是我們將達到的水平。正如喬什剛才提到的幾個問題，我們也採取了——好幾次，我們已經呼籲如何考慮口罩銷售，這可能是一次性的。現在它可能已經成為我們生活的一部分很長一段時間了，但我們希望它可能不會永久出現。因此，當您考慮長期時，您可能需要考慮從您的模型中支持這些數字，看看我們的基礎業務會做什麼。

Okay. Next question from Nick Jones at Citi. How has Etsy's free shipping initiative progress in COVID given the surge demand in GMS? Are sellers more aware of the benefit of free shipping? Or given the demand, is free shipping less of a factor? I think that one's for you, Josh.

好的。下一個問題來自花旗銀行的 Nick Jones。鑑於 GMS 的激增需求，Etsy 的免費送貨計劃在 COVID 方面取得了怎樣的進展？賣家是否更清楚免費送貨的好處？或者考慮到需求，免費送貨不是一個重要因素嗎？我想那是給你的，喬希。

Sure. So we're feeling really good about how free shipping is going, and we're grateful that we took it head on in 2019 when we did because I think it positioned us much better for this moment that we're in today. When buyers show up on Etsy, they are, most of the time, finding shipping prices that are aligned with their expectations. And I think that's really helping Etsy to rise to the moment right now. So we continue to see progress in free shipping, and we highlighted -- the highlight of the quarter was really presenting this concept of bundles. So when you're on a seller shop looking at an item, we show you another item or 2 you could add to your cart that would tip you over to $35 that you would get free shipping. And that showed positive progress.

當然。因此，我們對免費送貨的進展感覺非常好，我們很感激我們在 2019 年率先採取行動，因為我認為它使我們在今天的這一刻處於更好的位置。當買家出現在 Etsy 上時，他們大多數時候會找到符合他們預期的運費。我認為這確實幫助 Etsy 站穩了腳跟。因此，我們繼續看到免費送貨方面的進展，並且我們強調 - 本季度的亮點確實展示了這種捆綁概念。因此，當您在賣家商店查看一件商品時，我們會向您展示另一件或 2 件商品，您可以將其添加到購物車中，如果價格超過 35 美元，您將獲得免費送貨。這顯示出積極的進展。

So I think that there's continued things we can do in shipping to help meet people's expectations on cost. But candidly, that is not the friction point that it once was because of the good work that we've done. When we look at top concerns or headwinds from buyers, shipping cost no longer is often cited as a top friction point. So we're turning our attention now to what are the next things on the list. And, for example, expected delivery date is something that we hear a lot. Is this item going to arrive on time? What happens if it doesn't arrive on time? So we're turning more attention now to setting by our expectations around when an item will arrive. Making sure we have a variety of options for shipping speed and also showing them if there's a particular date that they need to hit, here are things that can arrive in time for that date. Also, I think, in terms of keeping Etsy human, helping them to see the making process. Etsy may not be the fastest place to ship something, but there's a lot about having the product be made just for them. And so giving them insight into where the product is in the fulfillment process, where it is in the making process, we think can actually build excitement and energy around the product even before it arrives. So you'll see us focusing more in the coming quarters around that post-purchase experience as well.

所以我認為我們可以在航運方面繼續做一些事情來幫助滿足人們對成本的期望。但坦率地說，由於我們所做的出色工作，這不再是曾經的摩擦點。當我們審視買家最關心的問題或不利因素時，運費不再經常被列為最大的摩擦點。因此，我們現在將注意力轉向列表中接下來的內容。而且，例如，預計交貨日期是我們經常聽到的。這個項目會準時到達嗎？如果沒有按時到達會怎樣？因此，我們現在將更多的注意力轉向根據我們對物品到達時間的期望來設定。確保我們有多種運輸速度選項，並在他們需要到達特定日期時向他們顯示，這裡有一些可以在該日期及時送達的東西。此外，我認為，就保持 Etsy 人性化而言，幫助他們了解製作過程。 Etsy 可能不是運送東西最快的地方，但是為他們製作產品有很多好處。因此，讓他們深入了解產品在履行過程中的位置，在製造過程中的位置，我們認為實際上可以在產品到達之前就在產品周圍建立興奮和能量。所以你會看到我們在接下來的幾個季度裡也會更加關注售後體驗。

Great. Thanks, Josh. Okay. Next one is from Maria Ripps at Canaccord. You highlighted performance for a number of product categories, which is very helpful. Can you talk about product categories in terms of behavior of the customers you are seeing? Is there anything in the behavior pattern of new customers that would indicate whether they will stay with the platform longer-term or not?

偉大的。謝謝，喬希。好的。下一篇來自 Canaccord 的 Maria Ripps。您強調了許多產品類別的性能，這非常有幫助。你能根據你所看到的客戶的行為來談談產品類別嗎？新客戶的行為模式中有什麼可以表明他們是否會長期留在平台上？

Yes, great question. And Rachel gave some highlights on that in her prepared remarks. So we're trying to give you as much color as we can. So things like purchase -- repeat purchase rate are up very significantly year-over-year from where they were second quarter of 2019, and we feel great about that metrics, like what percentage of customers are making 4 or more purchases from 2 or more categories. That metric is going very well as well. So we're really encouraged by that. But we also do acknowledge that this is anything but a normal time. And so how this will trend once people have more options again is impossible for anyone to predict with accuracy. And so what I can say is that we're working super hard to make sure that our customers have a fantastic customer experience and that we're engaging them, learning what we can about them to deliver even more personalized experiences to get them to come back. And that's really our whole focus right now.

是的，很好的問題。雷切爾在她準備好的發言中強調了這一點。所以我們正在努力為您提供盡可能多的顏色。所以像購買這樣的事情——重複購買率與 2019 年第二季度相比同比增長非常顯著，我們對這些指標感覺很好，比如有多少客戶從 2 次或更多次購買了 4 次或更多次類別。該指標也進展順利。所以我們真的很受鼓舞。但我們也確實承認，這絕非正常時期。因此，一旦人們再次擁有更多選擇，這將如何發展是任何人都無法準確預測的。所以我能說的是，我們正在非常努力地工作，以確保我們的客戶擁有出色的客戶體驗，並且我們正在吸引他們，了解我們能做的關於他們的事情，以提供更加個性化的體驗來吸引他們背部。這真的是我們現在的全部重點。

And the only thing I'd add there is that some of the metrics we gave on nonmask sales, so looking at really the core business, and Josh gave a lot of information on how categories are performing. But we also said nonmask sales were up over 90%. And the GMS per buyer on a trailing 12-month basis was accelerated to almost 6%, where it's been gradually ticking up. We saw a nice little lift in that metric, too, which just reinforces the fact that people are coming back more frequently and sticking with the offering.

我唯一要補充的是，我們給出了一些關於非面具銷售的指標，所以真正關注核心業務，Josh 提供了很多關於類別表現的信息。但我們還表示，非口罩銷售額增長了 90% 以上。在過去 12 個月的基礎上，每個買家的 GMS 加速到近 6%，並且一直在逐漸上升。我們也看到了該指標的小幅提升，這進一步強化了人們更頻繁地回來並堅持使用該產品的事實。

Okay. Great. Moving on to a question from Lauren Cassel from Morgan Stanley. Can you quantify at a high level how much you reinvested either into marketing, technology and so forth into the business in the second quarter? We covered that on the call, but maybe we can talk about a little bit more.

好的。偉大的。接下來是摩根士丹利的 Lauren Cassel 提出的問題。您能否在較高水平上量化您在第二季度對營銷、技術等業務的再投資有多少？我們在電話中談到了這一點，但也許我們可以多談一點。

I think, Rachel, that's you.

我想，雷切爾，就是你。

Sure. I can start with the numbers that we gave on the call. We significantly increased our marketing spend. In fact, Q2, I think, was our highest -- is our high watermark on marketing spend for the company. And you can do some back of the envelope math that would show that we're getting really healthy ROIs on spend. And it's even healthier when you think about -- if you do that back of the envelope math, we'd just be looking at the in-quarter GMS from the in-quarter spend. But for every buyer that we acquire, you get a nice tail on that buyer, more so even when you spend on brand marketing, so you're going to get a long tail after the fact. So we feel pretty confident that we're placing our bets in the right places. We've got -- on our television spend, this is the first time we broke out the brand marketing dollars.

當然。我可以從我們在電話中提供的號碼開始。我們顯著增加了營銷支出。事實上，我認為，第二季度是我們最高的——是我們對公司營銷支出的高水位線。你可以做一些粗略的計算，這會表明我們在支出上獲得了非常健康的投資回報率。當您考慮時，它甚至更健康 - 如果您進行信封數學計算，我們只會從季度支出中查看季度 GMS。但是對於我們收購的每個買家，你都會在那個買家身上得到很好的尾巴，即使你在品牌營銷上花費更多，所以你會在事後得到一個長尾巴。因此，我們非常有信心將賭注押在正確的地方。我們已經 - 在我們的電視支出上，這是我們第一次打破品牌營銷資金。

And on the television spend, we triangulate or even from 9 or 10 different sources, we will pool data to make sure that we're getting to the right place -- the right answer on ROI. So we use our own data, we use the data of our media company, we layer on rank tracker information, so we can get sort of testimony from both Etsy buyers and non-Etsy buyers. And then we use panel data from iSpot to make sure that we're getting healthy return. We feel very, very good about the returns we've been getting on that spend. Looking forward, we're very likely to continue to spend -- taking advantage of very attractive CPMs in the digital video and television, linear television markets and very attractive CPCs in the performance marketing. And we'll start to invest more in some of the international markets, particularly the U.K. and Germany as well as use both brand creative and

在電視支出方面，我們對甚至來自 9 或 10 個不同來源的數據進行三角測量，我們將匯集數據以確保我們到達正確的地方——投資回報率的正確答案。所以我們使用我們自己的數據，我們使用我們媒體公司的數據，我們在排名跟踪器信息上分層，這樣我們就可以從 Etsy 買家和非 Etsy 買家那裡獲得某種證詞。然後我們使用來自 iSpot 的面板數據來確保我們獲得健康的回報。我們對這筆支出獲得的回報感到非常非常滿意。展望未來，我們很可能會繼續支出——利用數字視頻和電視、線性電視市場中極具吸引力的 CPM 以及績效營銷中極具吸引力的 CPC。我們將開始加大對一些國際市場的投資，尤其是英國和德國，同時利用品牌創意和

GR performance-related creative in tandem with each other. So we're pretty pleased with the performance we've been getting at that marketing spend.

GR 性能相關的創意相互串聯。因此，我們對我們在營銷支出方面取得的業績感到非常滿意。

And if I can pile on, we are all creatures of habit, and shopping is largely habit-driven. And there are very few times in one's life when you have an opportunity to reshape their habits. The classic 3 are when you get married, when you move home and when you have a baby. And otherwise, your habits are pretty cemented, and you're not really open to forming new habits. And so what this current moment has created is it's created a moment when everyone's habits are up for grabs. Suddenly, before you go buy anything, you've got to stop and think for yourself, where can I go to get that? And in that pause, Etsy is winning. If you can get someone to pause for 30 seconds and say, where can I go? Etsy is going to come to mind. But in more normal times, you don't get 30 seconds. You've got maybe a fraction of a second.

如果我能堅持下去，我們都是習慣的產物，而購物很大程度上是由習慣驅動的。一個人一生中很少有機會重塑他們的習慣。最經典的三個是結婚的時候，搬家的時候，生孩子的時候。否則，您的習慣會非常牢固，您不會真正願意養成新習慣。因此，當前時刻所創造的是，它創造了一個每個人的習慣都可以爭奪的時刻。突然間，在你去買任何東西之前，你必須停下來自己想想，我可以去哪裡買東西？在那段停頓中，Etsy 贏了。如果你能讓某人暫停 30 秒並說，我可以去哪裡？ Etsy 會浮現在腦海中。但在更正常的時候，你不會有 30 秒的時間。你可能只有幾分之一秒。

So the opportunity is if somebody has 1 second or less, then you say, where can you go to buy home decor? Where can you go to buy jewelry? Where can you go to buy a dress? Where can you go to buy a gift for your mother? Where can you go to buy toys for your kids? We want Etsy to be on the tip of people's tongues. And this is a moment to lean into that and to try to rewire those habits because we know that if we are on the tip of their tongues and they come find us, they're going to have a great experience. It's just about that top-of-mind consideration. So as Rachel said, we spent at a higher level than we ever had in the second quarter, and we feel very good about the returns that we got. We're always very focused on looking at returns, and in particular, at the margin. If we spend 1 more dollar, what would have happened? And so given that we feel quite good about the returns we had in the second quarter, we're going to push harder in the third quarter and see what happens if we go even deeper into some of our marketing spend, both in terms of sort of real-time metrics and the brand metrics and the consideration metrics, because we think that this is a moment that we really want to rise to and try to really lean into.

所以機會是如果有人只有 1 秒或更少，那麼你說，你可以去哪裡購買家居裝飾品？哪裡可以買到首飾？去哪裡買衣服？去哪裡給媽媽買禮物？去哪裡給孩子買玩具？我們希望 Etsy 成為人們津津樂道的話題。現在是時候依靠它並嘗試重新建立這些習慣，因為我們知道，如果我們在他們的舌尖上並且他們來找我們，他們將會有很棒的體驗。這只是最重要的考慮因素。因此，正如雷切爾所說，我們在第二季度的支出水平高於以往任何時候，我們對獲得的回報感到非常滿意。我們總是非常關注回報，尤其是利潤率。如果我們多花 1 美元，會發生什麼？因此，鑑於我們對第二季度的回報感到非常滿意，我們將在第三季度更加努力，看看如果我們更深入地研究一些營銷支出會發生什麼，無論是在分類方面實時指標、品牌指標和考慮指標，因為我們認為這是我們真正想要上升並嘗試真正進入的時刻。

Okay. Great. Next one is from Jason Helfstein from Oppenheimer. How much of the improvement in checkout conversion or top of the funnel checkout can be traced to product and search changes as a result of the cloud migration? What other product changes can you highlight?

好的。偉大的。下一個來自奧本海默的 Jason Helfstein。結帳轉換或漏斗結帳頂部的改進有多少可以追溯到雲遷移導致的產品和搜索更改？您還可以強調哪些其他產品變化？

Well, I can speak about a couple. First, I mean, the cloud migration is a great example of Etsy making a long-term investment. It took us several years of work, and of course, it costs money, but it also took material time from our engineering team. But had we not -- and of course, no one could have anticipated what would have happened in April and in the second quarter, but had we not made that investment when traffic doubled on the site basically overnight, if we had been in our own data centers without the ability to add capacity, our site would have slowed to a crawl and this moment would have passed us by.

好吧，我可以談談一對。首先，我的意思是，雲遷移是 Etsy 進行長期投資的一個很好的例子。我們花了好幾年的時間，當然，這要花錢，但也佔用了我們工程團隊的物質時間。但如果我們不——當然，沒有人能預料到 4 月和第二季度會發生什麼，但如果我們沒有在網站流量基本上在一夜之間翻倍時進行投資，如果我們自己沒有能力增加容量的數據中心，我們的網站會慢得像爬行一樣，這一刻就會過去。

So I think that it's a great example of us making investments both for the near-term but also for the long-term in balance that set Etsy up to really achieve its full potential. And we're going to continue to have a very balanced investment portfolio to make sure that we are well set up to achieve our full potential. When you look at conversion rate, and conversion rate was up significantly in this quarter, I think part of that is there are fewer places to shop. And so people are arriving with a fairly high degree of intent. But I also think our search engines are just getting better. And I don't know that I need to geek out every quarter with you on algorithms. But I will say that we've launched even more robust machine learning algorithms that are consuming more data that are doing just a better job of serving search results to you. We're doing a better job of organizing those search results in ways that it feels to you a little bit easier to digest, or to buyers, easier to digest. And we're doing a better job of streamlining. What's the information that needs to be on the page? And what information is extraneous or distracting? We're constantly experimenting with that. And frankly, it's just getting better, and that's allowing people to make more confident purchase decisions, which is undoubtedly helping with our conversion rate.

所以我認為這是一個很好的例子，說明我們既為短期投資，也為長期平衡投資，使 Etsy 真正發揮其全部潛力。我們將繼續擁有非常平衡的投資組合，以確保我們做好充分準備以充分發揮潛力。當您查看轉化率時，本季度轉化率顯著上升，我認為部分原因是購物場所減少了。因此，人們帶著相當高的意願來到這裡。但我也認為我們的搜索引擎正在變得越來越好。而且我不知道我需要每個季度都和你一起研究算法。但我要說的是，我們已經推出了更強大的機器學習算法，這些算法會消耗更多數據，從而更好地為您提供搜索結果。我們正在更好地組織這些搜索結果，讓您感覺更容易消化，或者讓買家感覺更容易消化。我們在精簡方面做得更好。頁面上需要包含哪些信息？哪些信息是無關的或分散注意力的？我們一直在對此進行試驗。坦率地說，它正在變得越來越好，這讓人們可以做出更自信的購買決定，這無疑有助於提高我們的轉化率。

Josh, this next one is sort of a follow-up on that one a little bit, so I'll just go with this one. It's from Rick Patel at Needham, a follow-up from him. Can you provide more color on the initiatives toward personalization? So saved searches and favorites sound like a stepping stone to product discovery and inspiration. How do you see these features evolving? And do you see this as a multiyear journey?

喬希，下一個是對那個的一點點後續，所以我就用這個。它來自 Needham 的 Rick Patel，是他的後續作品。您能否為個性化舉措提供更多色彩？因此，保存的搜索和收藏夾聽起來像是產品發現和靈感的墊腳石。您如何看待這些功能的演變？你認為這是一個多年的旅程嗎？

Definitely a multiyear journey, and there's at least 2 pieces. We've got to know more about you, and we've got to know more about the items. And so in terms of learning more about you, allowing you to leave bread crumbs, tell us more about yourself. Things like, what do you favorite? What do you add to what lists also tells us a lot. How do you name that list? Is this a value-oriented mid-century modern? Or did you name it things from my living room. So all of that gives us a lot more data about you. By the way, there's other things that we can start to incorporate that we haven't. Things like size of wallet that might inform what kind of average purchase price you'd want to be showing. What part of the country you live in, which might also inform taste. Those kinds of things, which maybe sound pretty basic, we have not historically incorporated into our search engines.

絕對是多年的旅程，至少有 2 件。我們必須更多地了解您，並且我們必須更多地了解這些項目。所以在更多地了解你方面，讓你留下麵包屑，告訴我們更多關於你自己的信息。比如，你最喜歡什麼？你將什麼添加到什麼列表也告訴了我們很多。你如何命名該列表？這是一個以價值為導向的中世紀現代主義嗎？或者你是從我的客廳裡給它起名字的嗎？所以所有這些都給了我們更多關於你的數據。順便說一句，還有一些我們還沒有開始整合的東西。諸如錢包大小之類的信息可能會告知您想要顯示的平均購買價格。你住在這個國家的哪個地方，這也可能影響品味。這些聽起來可能很基本的東西，我們在歷史上並沒有納入我們的搜索引擎。

So historically, and up until very, very recent times, everyone in America is searching for a certain keyword would get the same search results. And so there's obviously an opportunity to do much, much better than that. And you're seeing us now gain -- ask buyers for bread crumbs, ask them to tell us a little bit about themselves, their taste, their interest as well as our ability to intuit of things about them that are going to allow us to be more personalized. The other piece is how much do we actually understand about the item itself? And we've talked in the past a little bit about knowledge base. But what we mean by that is that we have been extremely reliant on the actual words that a seller inputs when they describe an item. And that is naturally very, very limited, both in terms of what we understand about the item and what other items it might be related to. So our ability to say, based on looking at an item and based on other items that are related to it, "Ah, this is a gemstone ring and it's for people whose birth month is April, and other things that relate to the birth month of April are the following." Those kinds of things, there is a huge road map where we are only at the very beginning of unpacking, and I think can make the Etsy experience much better.

所以從歷史上看，直到最近，美國的每個人都在搜索某個關鍵字，會得到相同的搜索結果。因此，顯然有機會做得比這好得多。你看到我們現在有所收穫——向買家要麵包屑，請他們告訴我們一些關於他們自己、他們的品味、他們的興趣以及我們憑直覺了解他們的事情的能力，這些事情將使我們能夠更加個性化。另一部分是我們對項目本身到底了解多少？我們過去曾談過一些關於知識庫的問題。但我們的意思是，我們一直非常依賴賣家在描述商品時輸入的實際文字。這自然是非常非常有限的，無論是就我們對這個項目的了解以及它可能與哪些其他項目相關而言。所以我們有能力說，基於對一件物品的觀察以及其他與之相關的物品，“啊，這是一枚寶石戒指，適合出生月份為四月的人，以及其他與出生月份相關的東西以下是四月的。”那些東西，有一個巨大的路線圖，我們才剛剛開始拆包，我認為可以讓 Etsy 體驗更好。

Another thing that I'll add is, in order to navigate Etsy really well, you have historically needed to be quite articulate. You've needed to know what keywords you should input into our search engine to describe your taste or what you're looking for. That implies a pretty high degree of intent that you know what you're looking for, and quite a lot of savvy to come up with words like boho, that many of us wouldn't even know what that means. So the ability to use images and say, I'm not sure I can put into words, but it looks like this. That kind of image-related search or let me show you some inspirations of other people who seem like you, and does this motivate you. Those kinds of ways to prompt allow people to browse, allow them to find inspiration from other people without needing to come up with words themselves, we are, again, at the first inning of that. In fact, I think we're just stepping up to the plate at the top of the first on that. And I think there's so much we can do that's going to make Etsy an even better place to shop coming through that.

我要補充的另一件事是，為了很好地駕馭 Etsy，您歷來需要非常清楚。您需要知道應該在我們的搜索引擎中輸入哪些關鍵字來描述您的品味或您正在尋找的內容。這意味著你知道自己在尋找什麼的高度意圖，以及想出像波西米亞風這樣的詞的相當多的智慧，我們中的許多人甚至不知道那是什麼意思。所以使用圖像和說的能力，我不確定我是否可以用語言表達，但它看起來像這樣。那種與圖像相關的搜索，或者讓我向您展示一些與您相似的人的靈感，這是否會激勵您。這些提示方式允許人們瀏覽，允許他們從其他人那裡找到靈感，而無需自己想出文字，我們再次處於第一局。事實上，我認為我們只是在第一個上面加緊了板塊。而且我認為我們可以做很多事情，這將使 Etsy 成為一個更好的購物場所。

Okay. Thanks, Josh. Next one is from Laura Champine at Loop. Can we get more color around the potential long-term impact of Offsite Ads to margins and more granularity about the impact they had in the second quarter?

好的。謝謝，喬希。下一篇來自 Loop 的 Laura Champine。我們能否就異地廣告對利潤率的潛在長期影響以及它們在第二季度產生的影響進行更詳細的分析？

I'll grab that one. So we -- first of all, the second quarter, as a reminder, you're looking at 2/3 of the quarter from the incremental revenue we generated from Offsite Ads. We, on the other hand, we continue to spend. So we're out there spending our marketing dollars. So you'll see the expense in the marketing line, and then that's offset by incremental revenue. And so some of the accounting that you might see happening is that we formally had a Google Shopping product and revenue with complete offset to revenue -- in our cost of revenue line, so it was revenue with 0 margin. That's gone away now. We now have revenue at a margin, but the expense is hitting marketing, not our gross margin line. We would expect -- we're seeing great performance from this product. We've seen very low churn. As a reminder, so every time there's a successful ad that we -- successful PLA that we place on one of the offsite channels that we use, a seller will be charged either 12% or 15% of that transaction fee if that sale is successful on their site. So if we buy that PLA and it's not successful or we buy that PLA and it's successful but on somebody else's listing, there's no transaction fee that gets transferred over. So there's nice performance. It's not a 100% pass-through of cost though.

我會抓住那個。所以我們 - 首先，第二季度，作為提醒，您正在查看我們從場外廣告產生的增量收入的季度的 2/3。另一方面，我們繼續花錢。所以我們在那里花費我們的營銷資金。所以你會看到營銷線的費用，然後被增量收入抵消。因此，您可能會看到發生的一些會計問題是，我們正式擁有 Google 購物產品和完全抵消收入的收入——在我們的收入成本線中，所以這是利潤率為 0 的收入。現在已經消失了。我們現在有利潤率的收入，但費用正在影響營銷，而不是我們的毛利率線。我們期望 - 我們看到該產品的出色性能。我們已經看到非常低的流失率。提醒一下，每次有一個成功的廣告，我們放置在我們使用的離線渠道之一的成功 PLA，如果銷售成功，賣家將被收取該交易費用的 12% 或 15%在他們的網站上。因此，如果我們購買了那個 PLA 但它不成功，或者我們購買了那個 PLA 但它成功了但在其他人的列表中，則沒有交易費用被轉移。所以有很好的表現。不過，這並不是 100% 的成本轉嫁。

Okay. Great. Thanks, Rachel. Next one is from Rick Patel at Needham. Can you talk about Etsy's performance in the markets where store reopenings are further along? Have consumers in those markets remain loyal to digital platforms, and particularly, to Etsy? How do you reinforce your success to make sure you retain these customers?

好的。偉大的。謝謝，雷切爾。下一篇來自 Needham 的 Rick Patel。你能談談 Etsy 在商店重新開業的市場上的表現嗎？這些市場的消費者是否仍然忠於數字平台，尤其是 Etsy？您如何鞏固成功以確保留住這些客戶？

Rachel, do you want to take that?

雷切爾，你要拿那個嗎？

I'll take that one. Yes, I can take. So we gave a couple of examples, both in France and Texas. So in France, we saw there was an impact as those -- as that market reopened, there has been, I'd say a soft impact to Etsy's performance in that market as opposed to a state like Texas that reopened, but it's been pretty stable, volatile, but the overall trend line has been stable. There's a slide in our presentation deck that shows that dynamic. I think we're going to see states reopening and closing, reopening and closing, and we don't know a lot about what's happening with return-to-work scenarios and return-to-school scenarios, which actually might drive more demand for things that Etsy sells in the nature of personal care or personal protective gear. Even with masks, even though there's now more competition with masks, that might be something that sticks with us for a very long time. People might need to wear mask for a very long time. We're starting to see things like accessories. So hair scrunchie that matches the mask. I might have made this joke on the last quarter call, but I've started to see trikinis, which is a mask plus a bikini that all match each other. We start to see face shields and other products that all have to do with the current environment that we're in. So the reopenings and closings by themselves don't necessarily predict what will happen to performance on the site. And then going back again to the point we made about, there's a core business there, completely unrelated to the -- to mask sales that just the line between online and off-line has virtually disappeared. People realize that it is a place to buy anything really. And our core -- our top core 6 categories have grown over 90%, excluding masks.

我會拿那個。是的，我可以接受。所以我們舉了幾個例子，都在法國和得克薩斯州。所以在法國，我們看到了這些影響——隨著那個市場的重新開放，我想說對 Etsy 在那個市場的表現產生了軟影響，而不是像德克薩斯州這樣重新開放的州，但它一直很漂亮平穩，震盪，但總體趨勢線一直平穩。我們的演示文稿中有一張幻燈片顯示了這種動態。我認為我們將看到各州重新開放和關閉，重新開放和關閉，我們對返回工作場景和返回學校場景的情況知之甚少，這實際上可能會推動更多需求Etsy 以個人護理或個人防護裝備的形式銷售的東西。即使有了口罩，儘管現在口罩的競爭越來越激烈，但這可能會在很長一段時間內困擾我們。人們可能需要長時間佩戴口罩。我們開始看到配件之類的東西。所以髮圈與面具相配。我可能在上個季度的電話會議上開過這個玩笑，但我已經開始看到三基尼泳裝，這是一個面罩加上一個比基尼泳裝，它們相互匹配。我們開始看到面罩和其他產品都與我們所處的當前環境有關。因此，重新開放和關閉本身並不一定能預測網站的性能會發生什麼。然後再次回到我們提出的觀點，那裡有一個核心業務，與 - 掩蓋銷售，線上和線下之間的界限實際上已經消失。人們意識到這是一個真正可以買到任何東西的地方。而我們的核心——我們最核心的 6 個類別增長了 90% 以上，不包括口罩。

So I'll just pile on there a little bit to say, it has been extraordinarily difficult to look and find one-to-one relationships if a state reopens. And you see that more starkly in France than others. That's why we kind of picked that as one example. And that's what's made all of this so tricky. There is a decel implied in our Q3 guidance, and we believe that, that is appropriate. We -- although it's very difficult to find a light switch effect where a state reopens and you see a sudden change. We do see some deceleration as states reopen, as you would expect, we do see some deceleration. When they close back down again, we see some acceleration. And so our guidance implies some level of deceleration in the third quarter. And based on what we see happening, we think that that's appropriate. And to the best of our knowledge, that reflects what we think is most likely to happen given that the very wide lens that we gave, 30 percentage point range in guidance. The other thing that I would point out is federal stimulus, which has been very meaningful. And it's -- again, it's hard to pin down how much a $600 weekly check is making a difference, but we have some indicators to suggest that it is making some difference. And so if those checks were to stop or be reduced, we also think that, that could have an impact. So all those are things that we're thinking about and factoring in as we look forward.

所以我只想說一點，如果一個州重新開放，尋找和找到一對一的關係是非常困難的。你在法國看到的比其他國家更明顯。這就是為什麼我們選擇它作為一個例子。這就是讓這一切變得如此棘手的原因。我們的第三季度指南中暗示了減速，我們認為這是適當的。我們 - 儘管很難找到狀態重新打開並且您看到突然變化的電燈開關效果。正如您所料，隨著各州重新開放，我們確實看到了一些減速，我們確實看到了一些減速。當他們再次關閉時，我們看到了一些加速。因此，我們的指引暗示第三季度會有一定程度的減速。根據我們看到的情況，我們認為這是合適的。據我們所知，這反映了我們認為最有可能發生的事情，因為我們給出了非常廣泛的鏡頭，指導範圍為 30 個百分點。我要指出的另一件事是聯邦刺激計劃，這非常有意義。而且它——同樣，很難確定每週 600 美元的支票會產生多大的影響，但我們有一些指標表明它正在產生一定的影響。因此，如果停止或減少這些檢查，我們也認為這可能會產生影響。因此，所有這些都是我們在展望未來時正在考慮和考慮的因素。

Okay. Great. We're just about out of time. So I'm going to squeeze in one more from Ygal Arounian from Wedbush. With the influx of new buyers coming to Etsy, are there 1 or 2 things you would like to call out that you think has the best ability to bring new and reactivated buyers back to the regular Etsy shoppers? And are there pockets of users within these cohorts that you think are more attractive going forward that you're marketing to? Or are you just treating everyone equally?

好的。偉大的。我們快沒時間了。所以我要從 Wedbush 的 Ygal Arounian 那裡再請一位。隨著新買家湧入 Etsy，是否有 1 或 2 件你認為最有能力將新買家和重新激活的買家帶回常規 Etsy 購物者的事情？在這些群體中，是否有您認為對您的營銷更具吸引力的用戶群體？還是你只是平等對待每個人？

Well, as I said, I think we're really trying to get past the day where we treat everyone equally. We have been treating everyone equally up until now, and we're now gaining the tools to be able to start to differentiate and personalize. And again, we value every buyer and we value every seller. But that doesn't mean that they want to see the same things from us. And in fact, given the vastness of the Etsy marketplace, they certainly don't want to see the same things. So the more we can learn about the buyers, the more we can match them with the sellers and the items that they're most likely to love. And we are just starting. Things like saved searches, favoriting, these are very powerful, but they are -- they're just the beginning of the kind of things that we can do to start to understand what a buyer likes.

好吧，正如我所說，我認為我們真的在努力度過我們平等對待每個人的那一天。到目前為止，我們一直平等對待每個人，現在我們正在獲得能夠開始差異化和個性化的工具。再一次，我們重視每一位買家，我們也重視每一位賣家。但這並不意味著他們想從我們身上看到同樣的東西。事實上，考慮到 Etsy 市場的廣闊，他們當然不想看到相同的東西。因此，我們對買家的了解越多，我們就越能將他們與賣家以及他們最可能喜歡的商品相匹配。我們才剛剛開始。保存的搜索、收藏等功能非常強大，但它們只是我們可以做的事情的開始，可以開始了解買家的喜好。

And by the way, once we know that, if a buyer has favorited something in particular, if we see them searching for something on Google or we find them on Facebook, our opportunity to be more specific in terms of what we market to them have a better sense of what we would bid to be in front of them again and to reengage them. What's that second purchase worth? What's that sixth purchase worth? We're starting to get much more specific about thinking about the incremental value of getting someone to that next step in the life stage, and what's the next likely purchase that's likely to get them there? So I'm really encouraged by the road map that we have ahead of us to be able to do an ever better job on that. Mostly, I think -- because I think we're almost out of time, I am incredibly excited by what this quarter says about the potential of Etsy. When buyers give us a chance, we have an unbelievable ability to meet their needs across almost everything in life that they want to buy. And when they try us, they find we've got something great for sale that's similar to what they have, could have found someplace else, except that it's made just for them. And they bought it from a person who made it in a way that feels really human. And so we're seeing buyers be delighted by that. And so I think that, that speaks volumes to the potential that we have in the years and decades to come.

順便說一句，一旦我們知道，如果買家特別喜歡某樣東西，如果我們看到他們在谷歌上搜索某物或我們在 Facebook 上找到他們，我們就有機會更具體地向他們推銷什麼更好地了解我們將出價再次出現在他們面前並重新吸引他們。第二次購買值多少錢？第六次購買的價值是多少？我們開始更具體地考慮讓某人進入人生階段的下一步的增量價值，以及下一個可能讓他們到達那裡的可能購買是什麼？因此，我對我們面前的路線圖感到非常鼓舞，因為我們能夠在這方面做得更好。大多數情況下，我認為——因為我認為我們快沒時間了，我對本季度關於 Etsy 潛力的說法感到非常興奮。當買家給我們機會時，我們擁有令人難以置信的能力來滿足他們對生活中幾乎所有他們想購買的東西的需求。當他們試用我們時，他們發現我們有一些與他們所擁有的相似的好東西，可以在其他地方找到，只是它是專為他們製作的。他們從一個以真正人性化的方式製作它的人那裡購買了它。因此，我們看到買家對此感到高興。所以我認為，這充分說明了我們在未來幾年和幾十年的潛力。

Great. Josh, that's a perfect way to end. Thank you all for listening. Thanks, Josh and Rachel, and we will talk to you all soon. We appreciate your time and interest in Etsy. Everyone, have a good night. Thank you.

偉大的。喬什，這是一個完美的結束方式。謝謝大家的聆聽。謝謝，Josh 和 Rachel，我們很快就會與你們交談。我們感謝您的時間和對 Etsy 的興趣。大家晚上好謝謝你。