David Mandelbrot was on the job as Reverb's new CEO for just six weeks before Covid-19 forced his, and virtually every other office, to close as the pandemic made companies work from home.
Hired in late January to replace founder David Kalt as chief executive of the popular online music gear marketplace, Mandelbrot spent just a month in Reverb's Chicago office and another two weeks in Brooklyn at the headquarters of Etsy, which had just acquired the Chicago startup six months prior.
By mid-March, not only was he tasked with leading the next chapter at Reverb, but he needed to do so with a fully remote team he just met.
"In some ways it's been a challenge to be able to keep the team motivated — to be able to ensure we’re all collaborating really well," Mandelbrot said. "I feel lucky that I got six weeks in with people face to face."
But Mandelbrot, who was previously the CEO of Indiegogo, said the team quickly adjusted to the new normal of remote work. And as the pandemic continued to impact the everyday lives of millions of Americans, Reverb began to notice a positive business trend: more people were buying instruments.
Reverb reported its highest quarterly gross merchandise sales ever last quarter, selling $227 million worth of music gear in Q2. Etsy noted in its latest earnings report that Covid-related upticks in online shopping helped the e-commerce marketplace deliver a strong second quarter, and Reverb "benefitted from similar macroeconomic e-commerce tailwinds," the company wrote, citing an increase in new buyers and novice musicians.
Mandelbrot said Reverb sold 50% more music gear in April than it did in the same month last year, and searches for music equipment on Reverb were also up around 50% during the first few months of the pandemic. He credits increased downtime, along with a closure of many brick-and-mortar music shops in the spring, for the uptick in business.
"More and more people are turning to musical instruments to keep them occupied during this time, and that's been wonderful for our business," Mandelbrot said.
He said the platform has seen a surge in home recording equipment purchases, as well as small portable instruments like acoustic guitars, synthesizers and keyboards. Searches for ukuleles have been up 99% year-over-year.
Joining Etsy has also given Reverb more resources to grow its business, Mandelbrot said, adding that the company as seen "significant revenue growth" since the acquisition. Now at 190 employees, Reverb plans to continue hiring through the end of the year, growing its product team by around 40%, the company said.
However, it'll be a while before Mandelbrot sees those new hires, or his existing team, in person. He recently told employees they won't be required back in the office until June 2021.
