Q: Can you elaborate on the performance of the advertising business and its contribution to overall revenue? A: David Rosenblatt (CEO) noted that the advertising business continues to be a high-growth area, with revenue increasing significantly year-over-year. He highlighted that the new advertising products are gaining strong traction with sellers, and the company sees a substantial long-term opportunity to monetize its traffic more effectively.

Q: How is the company addressing the challenges in the high-end consumer market, and what are the trends in buyer demand? A: David Rosenblatt (CEO) acknowledged that the macroeconomic environment remains uncertain, but noted that the company's focus on high-intent buyers and its unique inventory of authenticated goods provides resilience. He mentioned that while overall demand is stable, the company is seeing increased conversion rates as it improves the buyer experience and expands its product offerings.

Q: What are the main drivers of the increase in Gross Merchandise Value (GMV) and take rate? A: John Midwinter (CFO) explained that GMV growth was driven by an increase in the number of orders, partially offset by a slight decrease in average order value. The take rate improved to 18.2% from 17.5% in the prior year period, primarily due to the growth in higher-margin advertising revenue and an increase in seller services revenue.

Q: Can you provide an update on the company's international expansion efforts and performance in key markets? A: David Rosenblatt (CEO) stated that international markets continue to perform well, with particular strength in Europe. The company is investing in localized marketing and payment solutions to better serve international buyers and sellers, and these efforts are yielding positive results in terms of both buyer growth and GMV contribution.

Q: How is the company's cash position and capital allocation strategy evolving? A: John Midwinter (CFO) reported that the company ended the quarter with $78.5 million in cash and cash equivalents, with no debt. He reiterated that the company's capital allocation priorities remain investing in high-return growth initiatives while maintaining a strong balance sheet, and they are not currently planning any share buybacks.

Q: What are the trends in the supply side, and how is the company working to increase the number of active sellers? A: David Rosenblatt (CEO) mentioned that the company added a record number of new sellers in the quarter. He emphasized that the value proposition for sellers is strengthening due to the company's growing buyer base and the new advertising tools, which are helping to attract and retain high-quality sellers.

Q: Could you discuss the impact of the new seller fee structure on seller behavior and retention? A: David Rosenblatt (CEO) stated that the new fee structure has been well-received by sellers. It has led to increased engagement and a higher number of listings, as sellers are more willing to list higher-priced items. The company has not seen any negative impact on seller retention, and the new structure is expected to be a long-term positive for the marketplace.

Q: Can you provide more color on the company's marketing efficiency and customer acquisition costs? A: John Midwinter (CFO) noted that the company continues to see improvements in marketing efficiency, with a lower cost per new buyer acquisition. This is being driven by better targeting and the growing strength of the brand. He added that the company is being disciplined with marketing spend, focusing on channels that provide the best return on investment.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .