Etsy reports Q3 EPS 45c, consensus 55c

Reports Q3 revenue $662.41M, consensus $652.81M. “Our Q3 consolidated results came in roughly as anticipated, with some incremental pressure on Etsy (ETSY) marketplace year-over-year GMS, healthy growth in revenue, and continued strength in our adjusted EBITDA profitability,” said CEO Josh Silverman. “We made excellent progress improving Etsy marketplace customer experiences – from Gifting, to Quality, a new loyalty program, investing in our app, and more – all of which we believe will drive engagement and frequency over time. While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy even more Etsy – which we believe will lift our boat when the tide comes back in again.” “We continue to balance long-term growth investments with delivering strong and sustainable profitability,” said CFO Rachel Glaser. “Q3 adjusted EBITDA margin was about 28%, ahead of our guidance, with excellent revenue flow through – benefiting primarily from healthy growth in both our Marketplace and Services segments, and continued cost efficiencies. We continue to drive leverage in product development, offset somewhat by increased marketing spend in the quarter as Etsy expanded investments in paid social and newer performance marketing channels, and Depop leaned in to both performance and brand marketing aligned with its growth opportunity.”