NYSE$ETSY

Etsy Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Etsy achieved its highest-ever quarterly revenue in Q4 2024 despite facing GMS headwinds.

Etsy reported record revenue of $852.2 million in Q4 2024, growing 1.2% year-over-year. However, consolidated GMS declined by 6.8% due to pressures on consumer discretionary spending and a highly competitive retail environment. Net income rose 56% year-over-year to $129.9 million, benefiting from the absence of prior-year restructuring costs. Non-GAAP adjusted EBITDA also reached a record $250.6 million with a margin of 29.4%.

  • Record quarterly revenue of $852.2 million, up 1.2% year-over-year.
  • Consolidated GMS fell 6.8% year-over-year to $3.7 billion.
  • Net income increased 56% to $129.9 million, with a net income margin of 15.2%.
  • Cash and cash equivalents totaled $811.2 million at year-end.

Headline financials

Total Revenue

$852M

Previous: $842M+1.2%
EPS (adj)

$1.03

Previous: $0.77+33.8%
Gross Merchandise Sales

$3.74B

Previous: $4.01B-6.8%
Active Sellers

8.1M

Previous: 9.0K+89927.7%
Active Buyers

95.5M

Previous: 96.5K+98838.7%
Take Rate

22.8%

No prior period
Adjusted EBITDA

$251M

No prior period
Adjusted EBITDA Margin

29.4%

No prior period
Capital Expenditures

-$10.5M

Previous: -$12.6M+16.7%
Net Income

$130M

Previous: $83.3M+56.0%
Operating Income

$155M

Previous: $115M+34.4%
Gross Profit

$634M

Previous: $587M+8.2%
R&D Expense

$111M

Previous: $104M+7.2%

Revenue & EPS history

Etsy · Revenue · Quarterly

$852M

Q4 2024+1.2%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Etsy · $636M total across 2 segments · Q3 2023

  • Marketplace Revenue
    $461M+3.9%
  • Services Revenue
    $175M+16.2%

Forward guidance

Etsy expects Q1 2025 GMS to decline at a rate similar to Q4 2024 but anticipates long-term growth opportunities through investments in discovery and buyer engagement.

Tailwinds

  • Take rate expected to remain strong at ~23%.
  • Continued improvements in Etsy Ads to drive revenue growth.
  • Ongoing investments in personalization and buyer engagement.
  • High free cash flow conversion provides financial flexibility.
  • Scaling loyalty programs and marketing to attract repeat buyers.

Headwinds

  • GMS expected to decline at a similar rate to Q4 2024.
  • Challenging macroeconomic environment impacting discretionary spending.
  • Highly competitive e-commerce landscape with aggressive promotions.
  • Potential headwinds from currency fluctuations.
  • Increased costs related to platform investments and marketing.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.8%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

45%

20 / 44 earnings

Positive

+27.8%

Q4 2021

Best reaction

-32.8%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.2%+1.4%+7.4%
Q4 2025+9.3%+23.5%+20.0%
Q3 2025-12.5%-18.3%-27.5%
Q1 2025-5.7%-2.3%+20.0%
Q4 2024-10.1%-7.1%-21.3%
Q3 2024+8.3%+10.1%+15.5%
Q2 2024-6.8%-14.1%-14.6%
Q1 2024-13.7%-9.0%-7.6%
Q4 2023-6.9%-5.2%-10.6%
Q3 2023-1.1%+1.3%+31.7%
Q2 2023-15.9%-14.4%-24.3%
Q1 2023-6.7%-6.5%-14.3%
Q4 2022+5.4%-3.4%-14.4%
Q3 2022+9.4%+8.5%+53.7%
Q2 2022+12.5%+11.1%+11.7%
Q1 2022-9.5%-14.1%-19.4%
Q4 2021+27.8%+35.2%+13.6%
Q3 2021+12.7%+8.4%-3.9%
Q2 2021-4.2%-3.9%+15.7%
Q1 2021-16.3%-11.3%-12.9%
Q4 2020+5.3%+14.0%-3.2%
Q3 2020-9.2%-13.3%+10.1%
Q2 2020+0.7%+3.8%-13.7%
Q1 2020+5.2%+10.3%+8.1%
Q4 2019+16.1%+17.9%-22.5%
Q3 2019-18.2%-17.8%-20.3%
Q2 2019-10.9%-17.4%-21.2%
Q1 2019-9.3%-14.5%-4.6%
Q4 2018+21.1%+28.4%+15.6%
Q3 2018+18.7%+23.5%+31.7%
Q2 2018+5.5%+10.9%+14.1%
Q1 2018-4.6%-4.5%+6.4%
Q4 2017+19.8%+21.7%+32.9%
Q3 2017+1.6%+0.8%+13.0%
Q2 2017+8.1%+11.4%+16.3%
Q1 2017-5.0%+5.4%+22.5%
Q4 2016-16.4%-20.3%-18.7%
Q3 2016-13.2%-11.8%-8.1%
Q2 2016+16.7%+16.1%+16.2%
Q1 2016+3.6%
Q4 2015-0.6%
Q3 2015-6.7%
Q2 2015-32.8%
Q1 2015-16.3%
Q4 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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