Betting on a turnaround is tough, but in this instance, it might make sense to do just that. Having exposure to the S&P 500 in recent times has been a fruitful endeavor. The broad index of 500 large and profitable U.S. businesses has generated a total return of 96% in the past five years, virtually doubling one's capital. That's a fantastic outcome. Not all companies have performed even remotely as well for their shareholders. Etsy (ETSY 1.36%), for example, is actually down 4% since August 2019. The online ...

Shares of this specialty e-commerce marketplace are well off their high. Investors looking to gain exposure to the e-commerce industry most likely have Amazon at the top of their lists. The massive tech juggernaut, worth more than $1.7 trillion, dominates online shopping. However, Etsy (ETSY 1.36%), a much tinier enterprise by comparison, might also have your attention. It has successfully carved out a niche in the large e-commerce space. If you're thinking of buying shares, know these three things first. 1 ...

The S&P 500 has been a common choice for passive investors. It has delivered steady returns over the years, especially for investors who withstood market corrections and continued to make regular investments. The stock market has done an excellent job of outperforming many types of assets, but not every S&P 500 holding has been a winner. Some companies featured in the S&P 500 have been declining for years, making them unappealing for investors. Investors can look at S&P 500 ETFs with fewer than 500 holdings ...

Earnings Performance - Etsy reported Q2 2024 earnings of 41 cents per share, missing the Zacks Consensus Estimate by 10.9% and reflecting an 8.9% year-over-year decrease [1] - Revenues increased 3% year-over-year to $647.81 million, beating the Zacks Consensus Estimate by 2.3% [1] Revenue Breakdown - Marketplace revenues were $470.38 million (72.6% of total revenues), up 3.8% year-over-year, driven by payments and transaction fee revenue from Offsite Ads [2] - Services revenues were $177.43 million (27.4% of total revenues), up 0.9% year-over-year [3] User Metrics - Etsy acquired 5.6 million new buyers, with total active buyers reaching 91.5 million, a 1% year-over-year increase [2] - Active buyer base grew 0.4% year-over-year to 96.6 million, missing the consensus mark of 97.2 million [4] - Active seller base stood at 8.8 million, up 5.9% year-over-year, but missed the consensus mark of 9.6 million [4] - Reactivated buyers reached 6.4 million, up 8.5% year-over-year [5] Gross Merchandise Sales (GMS) - GMS was $2.95 billion, down 2.1% on a reported basis and 1.9% on a currency-neutral basis year-over-year, beating the Zacks Consensus Estimate of $2.92 billion [5] - Etsy marketplace's GMS was $2.5 billion, down 3.2% on a reported basis year-over-year [5] Operating Performance - Gross margin expanded 160 basis points year-over-year to 71.6% [6] - Total operating expenses decreased 11.1% year-over-year to $393.55 million, representing 60.8% of revenues compared to 70.4% in the prior-year quarter [6] - Operating income was $70.2 million, compared to an operating loss of $2.4 million in the prior-year quarter [6] Balance Sheet - Cash and cash equivalents totaled $759.21 million as of Jun 30, 2024, down from $788.84 million as of Mar 31, 2024 [7] - Short-term investments were $240.68 million, down from $254.88 million in the previous quarter [7] - Long-term debt stood at $2.29 billion at the end of Q2 2024, up from $2.28 billion at the end of the prior quarter [8] Guidance - For Q3 2024, Etsy expects the take rate to be similar to Q2 2024's 22% [9] - GMS is anticipated to decline in the low single-digit range year-over-year [9] - Adjusted EBITDA margin is expected to be 27% [9]

As Etsy sees its sales slip, the eCommerce marketplace is gearing up to launch a loyalty program in an effort to drive greater spending and frequency among consumers who demand to be rewarded for their purchases. On a call with analysts Wednesday (July 31) discussing the company's second-quarter 2024 financial results, CEO Josh Silverman explained that an invitation-only beta test will launch to a "highly targeted group of occasional U.S. buyers" in September, following "many rounds" of research. "We've foc ...

| --- | --- | --- | |-------|-------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 2024 | | | | | | | | | | | | Financial Results | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-looking Statements 2 This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to: statements relating to our financial guidance for the third quarter 2024 and full year 2024 and underlying ...

Financial Data and Key Metrics Changes - Etsy's consolidated Gross Merchandise Sales (GMS) for Q2 2024 was $2.9 billion, down approximately 2.1% year-over-year, with a 20 basis point foreign exchange headwind [18] - Revenue increased by 3% year-over-year to $648 million, with an adjusted EBITDA margin of approximately 28%, up 130 basis points year-over-year [18][21] - Etsy marketplace GMS was $2.5 billion, representing a 3.2% decline year-over-year, an improvement from the 5.3% decline in Q1 [18][19] Business Line Data and Key Metrics Changes - Etsy marketplace revenue grew by 3.8% year-over-year, primarily driven by payments and offsite ads [19] - Consolidated services revenue grew by 1%, led by higher Depop shipping label and ads revenue [20] - The adjusted EBITDA margin for the Etsy marketplace was approximately 27.7%, reflecting strong performance despite ongoing macroeconomic challenges [21] Market Data and Key Metrics Changes - Active buyers in the Etsy marketplace reached approximately 91.5 million, growing 1% year-over-year [26] - GMS per active buyer was down 3.2% to $124, indicating signs of stabilization [27] - Depop and Reverb showed strong year-over-year GMS growth, with Depop focusing on removing selling fees for US sellers [28][29] Company Strategy and Development Direction - The company aims to enhance buyer consideration and make Etsy a go-to shopping destination by improving customer experiences and launching bold initiatives [5][6] - A new loyalty program, Etsy Insider, is set to launch in mid-September, targeting occasional buyers to increase their shopping frequency [14][41] - The company is leveraging AI and machine learning to improve search and buyer engagement, focusing on quality and diversity in listings [15][8] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic headwinds but expressed optimism about improvements in customer experience and GMS growth [3][16] - The company anticipates a modest acceleration in consolidated GMS from Q1 to Q2, with guidance for Q3 indicating a low single-digit decline year-over-year [31] - Management emphasized the importance of maintaining a differentiated customer experience to navigate economic challenges [46] Other Important Information - Rachel Glaser, the CFO, announced plans to retire, highlighting her contributions to the company's success [4][33] - The company has $1.1 billion in cash and equivalents, with a commitment to return a significant portion of free cash flow to shareholders through stock repurchases [30] Q&A Session Summary Question: Timing for the new seller classification program and its impact on buyer conversion - Management indicated that the program aims to increase frequency rather than conversion, focusing on showcasing a broader variety of items to engage more buyers [36][37] Question: Shape of GMS growth recovery and macroeconomic conditions - Management noted that macro conditions remain volatile, with mixed signals, but expressed cautious optimism for Q4 based on product initiatives and quality investments [39][47] Question: Target customer for the new loyalty program and pricing strategy - The loyalty program targets occasional buyers, aiming to convert them into more frequent shoppers, with pricing expected to be affordable [41][43] Question: Confidence in performance marketing spend and its impact on GMS - Management explained that increased marketing spend is part of a strategy to test new channels and optimize for ROI, with confidence in maintaining margins [51][54]

Etsy (ETSY) reported $647.81 million in revenue for the quarter ended June 2024, representing a year-overyear increase of 3%. EPS of $0.41 for the same period compares to $0.83 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $633.51 million, representing a surprise of +2.26%. The company delivered an EPS surprise of -10.87%, with the consensus EPS estimate being $0.46. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-36911 __________________________________ ETSY, INC. (Exact name of reg ...

Etsy, Inc. Reports Second Quarter 2024 Results Consolidated results came in at the high end or ahead of guidance for key performance metrics Brooklyn, NY - July 31, 2024 - 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 results for its second quarter ended June 30, 2024. "We are pleased that second quarter consolidated results included sequential acceleration of Etsy marketplace year ...