Etsy Inc ( (ETSY) ) has realeased its Q3 earnings. Here is a breakdown of the information Etsy Inc presented to its investors.
Etsy, Inc. is a leading platform in the e-commerce sector, known for connecting millions of creative buyers and sellers through its online marketplaces, including its primary marketplace, Etsy.com, Depop for fashion resale, and Reverb for music gear. In its third quarter of 2024, Etsy reported a modest growth in revenue despite challenges in the discretionary goods market, with consolidated revenue rising by 4.1% year-over-year to $662.4 million. However, the company’s consolidated Gross Merchandise Sales (GMS) saw a decline of 4.1% to $2.9 billion, attributed partly to the divestiture of Elo7. Revenue growth was driven by strong performances in both its Marketplace and Services segments, with Etsy Ads significantly contributing to service revenue growth. Key performance metrics revealed a decrease in active buyers and habitual buyers, though Etsy successfully reactivated 6.4 million buyers and acquired 5.3 million new ones. Net income fell to $57.4 million from the previous year, reflecting a 34.7% decrease. Nevertheless, the company maintained a strong adjusted EBITDA margin of 27.7%. Looking ahead, Etsy remains focused on long-term growth and profitability, emphasizing improvements in customer experience and strategic investments in marketing and technology. The company anticipates continued challenges in GMS but is optimistic about leveraging its unique marketplace strengths to enhance buyer and seller engagement.
