Etsy Inc ( (ETSY) ) has released its Q4 earnings. Here is a breakdown of the information Etsy Inc presented to its investors.
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Etsy, Inc. is a renowned online marketplace that connects creative buyers and sellers, offering unique and handcrafted goods globally, and operates within the e-commerce sector with a focus on empowering communities. The company recently reported its fourth-quarter and full-year 2024 financial results, highlighting a record quarterly revenue despite facing significant challenges throughout the year.
In the fourth quarter of 2024, Etsy achieved a record revenue of $852.2 million, marking a 1.2% increase from the previous year, attributed mainly to the growth in services revenue, specifically Etsy Ads. However, the Gross Merchandise Sales (GMS) experienced a decline, with consolidated GMS at $3.7 billion, down 6.8% year-over-year. The company successfully reactivated a record number of lapsed buyers and acquired new ones, although active buyers slightly decreased.
Etsy reported a significant increase in net income, reaching $129.9 million, up 56% from the previous year. The company’s profitability was bolstered by restructuring efforts and cost management, contributing to an adjusted EBITDA of $250.6 million, a 6.4% rise year-over-year. Notably, Depop, a subsidiary marketplace, achieved its highest GMS since acquisition, reflecting positively on Etsy’s diverse brand portfolio.
Looking forward, Etsy aims to focus on increasing buyer engagement and driving sales growth to return to positive GMS growth in 2025. The company plans to enhance the shopping experience by integrating more discovery features and personalized experiences, leveraging its strong brand and team to navigate future challenges and opportunities.
