Feb. 22, 2024
BROOKLYN, N.Y. – Fourth quarter financial results (released Feb. 21) for Etsy, Inc. revealed record-setting revenue for the Brooklyn-based art/collectibles platform. “Etsy delivered over $13 billion in consolidated GMS and our highest-ever annual revenue,” said Josh Silverman, Etsy’s CEO. “We’ve built an ambitious plan to invest in a portfolio of growth initiatives in 2024, starting with efforts to make Etsy an indispensable partner for Gifting.
“We recently launched Gift ModeTM, an interactive hub for gifting that combines AI and human curation to help shoppers find the perfect present — just the beginning of our bold plans to drive buyer consideration and frequency,” Silverman continued via company press release. “We start the year energized—with the right team, a highly relevant and differentiated Right to Win strategy, a disciplined investment approach, and a resilient business model.”
Fourth quarter 2023 performance highlights:
• Consolidated GMS was $4.0 billion, down 0.7% year-over-year and down 1.6% on a currency neutral basis. Headwinds to consolidated GMS included a dynamic macroeconomic environment that impacted consumer discretionary product spending, Etsy marketplace category mix, and a highly promotional and competitive retail environment, as well as a small headwind from the divestiture of Elo7.
• The Etsy marketplace’s GMS accelerated during the holiday season, with GMS during Cyber 5 (Thanksgiving through Cyber Monday) up 4% on a year-over-year basis. Etsy delivered record levels of GMS on Cyber Monday and Giving Tuesday.
• Active buyers reached a new all-time high of 92 million, increasing 3% year-over-year. United States active buyer trends continued to improve, with modestly positive year-over-year growth again this quarter, and international buyer growth remained strong.
• Etsy reactivated a record nearly 10 million lapsed buyers, up 13% from the prior year, and acquired over 8 million new buyers. On a trailing twelve month basis, retention of active buyers improved from the prior year and remained above pre-pandemic levels.
“We delivered our highest-ever quarterly consolidated revenue of $842 million in the fourth quarter due to healthy GMS flow through, strong growth in Etsy Ads and good contribution from payments,” said Rachel Glaser, Etsy’s CFO. “We made significant product and marketing investments to support the important holiday period, and our fourth quarter consolidated Adjusted EBITDA grew to an all-time high of $236 million. For the full year, our operational rigor and capital light business model have allowed us to deliver about $754 million in consolidated Adjusted EBITDA, at 27.4% margin, converting nearly 90% of that Adjusted EBITDA to free cash flow.”
Recent Comments