Shares of Etsy (ETSY) are under pressure after the creative goods marketplace discussed its long-term strategy and announced five-year financial targets. During its investor day, the company said it sees annual GMS growth of 16%-20% and revenue growth slightly higher.

LONGER-TERM TARGETS: Etsy hosted an investor day on Thursday at its headquarters, featuring members of its leadership team reviewing its strategy and initiatives. At a meeting entitled, "Unlocking Opportunity: the Path to Owning Special," Etsy CEO Josh Silverman reviewed the company's plan to deliver sustained growth. Silverman stated, "In the long-term, we believe we can further our sustainable competitive advantage around four key elements of our business that make us different - which collectively is our 'Right to Win.' These include our collection of unique items, best-in-class search and discovery, human connections, and trusted brand. We have a large and growing addressable market across Etsy's retail categories within our six core geographic markets, and believe our growth can continue to outpace overall e-commerce."

Etsy CFO Rachel Glaser added that "We believe our product improvements and investments lay the foundation for sustained growth over the next five years. We expect annual GMS to continue to grow in the range of 16%-20%, and we currently anticipate that revenue will grow slightly faster than GMS. Etsy has been growing faster than the overall e-commerce market, and this outlook suggests we will continue to grow faster than the market. With a disciplined approach to investment and continued focus on optimization, we expect adjusted EBITDA margins to expand to 30% or higher over that time frame."

PRICE ACTION: In afternoon trading, shares of Etsy have dropped almost 5% to $66.76.