Financial Data and Key Metrics Changes - In 2024, consolidated Gross Merchandise Sales (GMS) decreased by 4% year over year to $12.6 billion, while revenue reached a record $2.8 billion, up about 2% year over year [10][85] - Adjusted EBITDA for the year was $782 million, with margins of 27.8% [11][86] - In Q4 2024, consolidated GMS was approximately $3.7 billion, down 6.8% year over year, with GMS in the core Etsy marketplace declining 8.6% year over year [51][127] - Consolidated revenue in Q4 increased by 1.2% year over year to $852 million, and adjusted EBITDA grew to an all-time quarterly high of $251 million, up 6% from the prior year [128][129] Business Line Data and Key Metrics Changes - Services revenue increased by 8.1% year over year, driven by improved ad relevancy and optimized bidding in Etsy ads [130] - Consolidated marketplace revenue declined by 1.4% due to lower GMS, but was partially offset by higher consolidated payments revenue and revenue from the new seller onboarding fee [129] - The take rate for Q4 was 22.8%, ahead of expectations, supported by solid take rate expansion in Etsy ads and payments [131] Market Data and Key Metrics Changes - US buyers represented 74% of full year GMS in 2024, while non-US buyers accounted for 26% [139][140] - Non-US buyer GMS underperformed compared to US buyer GMS, reflecting unfavorable macroeconomic conditions in many international markets [67] Company Strategy and Development Direction - The company aims to enhance its differentiation by focusing on creativity, self-expression, and artisanal items, rather than competing on low prices and fast delivery [14][89] - A strategic shift in 2024 prioritized long-term initiatives over short-term growth, with a focus on improving customer experiences and increasing purchase frequency [12][88] - The introduction of a quality score in search algorithms aims to improve listing visibility based on factors like positive reviews and on-time shipping [16][91] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year, expressing disappointment in performance relative to high standards [9][84] - The company anticipates that the first quarter of 2025 will see a decline in consolidated GMS similar to Q4 2024, but expects improvements in the second half of the year as product development investments yield results [72][75] - Management is optimistic about leveraging advancements in machine learning and AI to enhance the shopping experience and drive growth [50][126] Other Important Information - The company repurchased $260 million in stock during Q4, with an additional $1 billion available under board authorization [70] - The Etsy Insider loyalty program, still in beta, has shown promising results in increasing purchase frequency among members [100][101] - Depop experienced significant growth, with GMS up nearly 32% year over year to $789 million, while Reverb's GMS was down 2.6% year over year at approximately $918 million [113][115] Q&A Session Summary Question: What are the expectations for GMS growth in 2025? - Management expects GMS performance to improve in the second half of 2025 as the comparisons become easier and the benefits of product development investments materialize [75] Question: How is the company addressing the decline in active sellers? - The decline in active sellers is seen as a necessary step to create a healthier seller base, with a higher percentage of sellers making sales [112] Question: What are the plans for marketing strategies in 2025? - The company plans to focus on efficiency in marketing, reallocating spending towards connected TV and paid social while maintaining a constant marketing spend as a percentage of revenue [102][76]

Wednesday, February 19, 2025New data on the housing market is out this morning ahead of the opening bell, further illustrating a profounds cooling down in this industry. We also see a slew of new quarterly earnings this morning, most of which are beating expectations but lowering guidance. Thus, we see the Dow -125 points at this hour, the S&P 500 is -15 and the Nasdaq -40. Housing Starts, Building Permits Mixed in JanuaryNew Housing Starts last month were notably lower than the previous month: January’s ta ...

An employee walks past a quilt displaying Etsy Inc. signage at the company's headquarters in the Brooklyn.Etsy missed on revenue and gross merchandise sales for the fourth quarter, with the company citing "significant headwinds," including a pullback on consumer spending. The stock slid more than 9% in morning trading Wednesday.Here's how the company did:Earnings: $1.03 per share vs. 93 cents per share expected by LSEGRevenue: $852.2 million vs. $862.8 million expected by LSEGGross merchandise sales, or the ...

For the quarter ended December 2024, Etsy (ETSY) reported revenue of $852.16 million, up 1.2% over the same period last year. EPS came in at $1.03, compared to $0.78 in the year-ago quarter.The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $861.72 million. With the consensus EPS estimate being $0.95, the EPS surprise was +8.42%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...

Key TakeawaysShares of online retailer Etsy fell Wednesday after revenue and sales on the platform came in below estimates in the fourth quarter.Revenue hit a quarterly record, but fell short of expectations as gross merchandise sales declined year-over-year.The company also expects GMS to decline in the first quarter "at a rate similar" to the nearly 7% drop it saw in the fourth quarter. Etsy (ETSY) shares slumped on Wednesday morning after the online selling platform's revenue and number of active buyers ...

Financial Performance - Etsy's sellers generated $12.6 billion of Gross Merchandise Sales (GMS) in 2024, with the Etsy marketplace contributing $10.9 billion (86.4% of total GMS) and Reverb and Depop generating approximately $917.9 million (7.3%) and $788.9 million (6.3%) respectively[32]. - Etsy's GMS declined 6% in 2024 to $10.9 billion, while the broader e-commerce sector experienced growth[51]. - In 2024, Etsy's revenue growth was driven by advancements in Etsy Ads, expanded payment platform coverage, and a new seller onboarding fee[52]. - Etsy estimates a $550 billion online market opportunity in relevant retail categories, with its GMS representing approximately 2% of that market[54]. - In 2024, Etsy's active buyers averaged three purchase days per year, indicating a significant opportunity to increase purchase frequency[48]. - GMS (Gross Merchandise Sales) per active buyer declined by 3.5% from 2023 to 2024, indicating challenges in buyer frequency and average order value[121]. Seller and Buyer Engagement - As of December 31, 2024, Etsy connected 8.1 million active sellers to 95.5 million active buyers, with 89.6 million buyers and 5.6 million sellers active on the Etsy marketplace[33][38]. - Approximately 30% of the 2024 GMS was derived from custom or made-to-order merchandise, highlighting the unique offerings of Etsy's sellers[36]. - The top six retail categories on the Etsy marketplace in 2024 accounted for approximately $9 billion, or 87% of total GMS, including homewares, jewelry, apparel, craft supplies, paper supplies, and toys[34]. - In 2024, Etsy reactivated nearly 29 million lapsed buyers from a pool of over 100 million[59]. - Approximately 48% of active buyers were repeat buyers in 2024, consistent with levels observed since 2020[131]. - Habitual buyers, defined as those spending $200 or more and purchasing on six or more days, comprised 7% of active buyers and accounted for 41% of 2024 GMS[132]. Marketing and Advertising - Etsy's performance marketing accounted for 21% of GMS in 2024, with significant investments in paid social marketing increasing from 17% to 22% of performance marketing spend[85][86]. - Revenue from the Offsite Ads program offset approximately 31% of the Etsy marketplace's performance marketing spend in 2024[87]. - In 2024, Etsy spent approximately $546 million on performance marketing and $172 million on brand marketing[84]. - Depop's marketing strategies in 2024 included a focus on performance marketing channels, resulting in its best-ever year in paid GMS[92]. Technology and Innovation - Etsy's strategy includes enhancing search and discovery through AI and machine learning to improve buyer experience and drive sales[37]. - Etsy's investment in technology infrastructure includes significant enhancements in machine learning and AI to improve customer experiences and streamline operations[78]. - The Etsy Search Visibility Page launched in mid-2024, providing sellers with actionable tips to improve their search rankings[104]. Sustainability and Social Responsibility - Etsy aims for a 50% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030, with a 33% reduction achieved as of 2024[151]. - Shipping emissions accounted for 54% of reported Scope 3 emissions in 2024, with a 12% intensity reduction relative to 2023[156]. - Etsy invested $1 million in 2024 from its Impact Investment Fund to support socially disadvantaged farmers through Iroquois Valley Farm's Rooted in Regeneration Notes[163]. - In 2024, Etsy made over $5.6 million in philanthropic donations to support equal access to economic opportunities[148]. - The company offset its reported Scope 1, 2, and 3 emissions in 2024 by investing in 478,566 verified emissions reductions (VERs)[161]. Employee Engagement and Diversity - Engagement scores from employee surveys showed 65% for Etsy, 66% for Reverb, and 76% for Depop, indicating varying levels of employee engagement across the brands[109]. - As of December 31, 2024, 51.5% of Etsy's global employees identified as women or marginalized genders, and 14.9% of U.S. employees identified as Black, Latinx, or Native American[187]. - 35.7% of all global employees identified as women or marginalized genders as of December 31, 2024[193]. - 20.2% of U.S. employees identified as Black, Latinx, Native American, Asian, and two or more races as of December 31, 2024[193]. - Etsy is committed to enhancing its supply chain diversity and transparency, aiming for a more resilient supply chain[212]. Market Opportunities - In 2024, Reverb's GMS was $918 million, down 2.6% from 2023, but performed slightly better than the overall musical instrument industry[64]. - The total available market opportunity for musical instruments is approximately $24 billion, with Reverb holding less than 5% market share, indicating significant potential for market share gains[67]. - Depop's Gross Merchandise Sales (GMS) reached $789 million in 2024, growing by 31.6% year-over-year, with growth accelerating throughout the year[70]. - The global secondhand apparel market is forecasted to grow to an estimated $350 billion by 2028, with the U.S. resale market expected to reach about $44 billion[73].

Etsy (ETSY) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.42%. A quarter ago, it was expected that this online crafts marketplace would post earnings of $0.54 per share when it actually produced earnings of $0.45, delivering a surprise of -16.67%.Over the last four quarters, the c ...

Core Insights - Etsy reported mixed Q4 2024 earnings with record revenue of $852.2 million, a 1.2% increase year over year, but below the $861.8 million estimate by analysts. The earnings per share (EPS) of $1.03 exceeded the consensus forecast of $0.93, marking a 66% increase from $0.62 in Q4 2023 [1][2]. Financial Performance - Q4 2024 metrics include: - EPS: $1.03, exceeding estimates of $0.93, up 66% from $0.62 in Q4 2023 [2] - Revenue: $852.2 million, slightly up 1.2% from $842.3 million in Q4 2023, but below the $861.8 million estimate [2] - Net income: $129.9 million, a 56% increase from $83.3 million in Q4 2023 [2] - Adjusted EBITDA: $250.6 million, a 6.4% increase from $235.5 million in Q4 2023, with a margin of 29.4% [2][7] Business Model and Market Position - Etsy operates as a digital marketplace connecting artisans and consumers, focusing on unique, handmade, or vintage items, emphasizing personalization and human connection [3]. - The company is expanding its market share domestically and internationally, particularly in the gifting sector, leveraging technological advancements for enhanced search and personalization [4]. Gross Merchandise Sales (GMS) Insights - GMS for Q4 2024 declined by 6.8% to $3.7 billion, attributed to reduced consumer spending on non-essential goods. However, the subsidiary Depop achieved record GMS figures since its acquisition, indicating strategic growth in the re-commerce space [5]. Community Engagement - Etsy experienced a 2.6% decrease in active buyers and a 10% drop in active sellers. Despite this, the company successfully re-engaged 9.8 million lapsed buyers and attracted nearly 6.9 million new buyers, demonstrating effective customer retention efforts [6]. Technological Initiatives - The company is prioritizing marketplace enhancements through artificial intelligence (AI) and personalized shopping experiences, with initiatives like the Etsy Insider loyalty program aimed at increasing purchase frequency [8]. Future Outlook - For Q1 2025, Etsy management anticipates a continued decline in GMS similar to Q4 2024, with a projected take rate of about 23% and an adjusted EBITDA margin between 25%-26%, reflecting ongoing strategic initiatives to enhance buyer engagement and accelerate GMS growth [9][10].

Etsy, Inc. Reports Fourth Quarter and Full Year 2024 Results Highest-ever quarterly revenue achieved in Q4 24 Brooklyn, NY - February 19, 2025 - Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced financial results for its fourth quarter and full year ended December 31, 2024. "Despite facing significant GMS headwinds in 2024, we are proud to have delivered year-over-year revenue growth a ...

Etsy (ETSY 3.40%) is down over 81% off its high, providing an excellent opportunity for long-term investors.*Stock prices used were the afternoon prices of Feb. 12, 2025. The video was published on Feb. 14, 2025. ...