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Modest 2Q Revenue Growth At Etsy – Report Touts “Gifting” Initiative

 

September 5, 2024

BROOKLYN, N.Y. – Etsy Inc. results for the second quarter (ended June 30, 2024) yielded consolidated revenue of $647.8 million, up 3% compared to the second quarter of 2023.

“We are pleased that second quarter consolidated results included sequential acceleration of Etsy marketplace year-over-year GMS [general management support], higher consolidated revenue both year-over-year and sequentially, and strong adjusted EBITDA profitability,” said Josh Silverman, Etsy, Inc. CEO via press release. “Gifting is proving to be a winning theme—driving growth as a key source of differentiation for Etsy. We are making excellent progress with other bold moves and investments meant to raise consideration among buyers – to help us stand apart more than ever. While this is a challenging environment for our type of goods, we are focused on reigniting Etsy marketplace growth and gaining market share.”

Second quarter 2024 performance highlights included:

  • Consolidated GMS of $2.9 billion, down 2.1% year-over-year and down 1.9% on a currency-neutral basis. Consolidated GMS included a small headwind from the divestiture of Elo7.
  • Etsy marketplace GMS was $2.5 billion, down 3.2% year-over-year and down 2.9% on a currency-neutral basis.
  • Gifting GMS was up 4.1% year-over-year, representing approximately 27% of GMS, significantly outperforming select online gifting focused peers.
  • Active buyers increased 1.0% year-over-year to 91.5 million, largely flat on a sequential basis, plus year-over-year growth in international active buyers.

“We are investing in strategic growth areas including Gifting, highlighting the best of Etsy through Quality initiatives, launching a new Loyalty Program, expanding our App, and more, while also carefully managing expenses to deliver very healthy profit,” said Rachel Glaser, CFO. “In fact, second quarter adjusted EBITDA was about 28%, ahead of our guidance and up 130 bps from last year, as we gained leverage year-over-year on employee costs and cost of revenue, which was partially offset by higher level of performance marketing investments to help fuel buyer growth and frequency. The Etsy marketplace’s record level of active buyers has held up quite well, and we added approximately 12 million new and reactivated buyers during the quarter.”