December 12, 2024
BROOKLYN, N.Y. – Etsy, Inc. results for the third quarter ended Sept. 30, 2024 yielded 4.1% revenue growth compared to the third quarter of 2023.
“Our third quarter consolidated results came in roughly as anticipated, with some incremental pressure on Etsy marketplace year-over-year GMS, healthy growth in revenue, and continued strength in our adjusted EBITDA profitability,” said Josh Silverman, Etsy, Inc. CEO. “We made excellent progress improving Etsy marketplace customer experiences – from Gifting, to Quality, a new loyalty program, investing in our app, and more – all of which we believe will drive engagement and frequency over time. While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy even more Etsy – which we believe will lift our boat when the tide comes back in again.”
Third quarter 2024 performance highlights include:
• Consolidated GMS was $2.9 billion, down 4.1% year-over-year and down 4.4% on a currency-neutral basis. Consolidated GMS performance includes a small headwind from the divestiture of Elo7.
• Etsy marketplace GMS was $2.5 billion, down 6.0% year-over-year and down 6.3% on a currency-neutral basis.
• Consolidated revenue was $662.4 million, up 4.1% versus the third quarter of 2023, with a take rate (i.e., consolidated revenue divided by consolidated GMS) of 22.7%. Our positive revenue growth was driven by growth in both Marketplace and Services revenue, with payments revenue driving Marketplace revenue performance, and Etsy Ads the primary driver of Services revenue growth.
• Consolidated net income was $57.4 million, down $30.5 million year-over-year. Consolidated net income margin (i.e., net income divided by revenue) was approximately 8.7% and diluted net income per share was $0.45.
“We continue to balance long-term growth investments with delivering strong and sustainable profitability,” said Rachel Glaser, CFO. “Third quarter adjusted EBITDA margin was about 28%, ahead of our guidance, with excellent revenue flow through – benefiting primarily from healthy growth in both our Marketplace and Services segments, and continued cost efficiencies. We continue to drive leverage in product development, offset somewhat by increased marketing spend in the quarter as Etsy expanded investments in paid social and newer performance marketing channels, and Depop leaned in to both performance and brand marketing aligned with its growth opportunity.”
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