Etsy(US:ETSY)2024-10-30 20:07Financial Performance - Consolidated GMS for Q3 2024 was $2.9 billion, down 4.1% year-over-year, with Etsy marketplace GMS at $2.5 billion, down 6.0% year-over-year[1]. - Consolidated revenue increased to $662.4 million, up 4.1% compared to Q3 2023, with a take rate of 22.7%[1]. - Consolidated net income was $57.4 million, a decrease of $30.5 million year-over-year, resulting in a net income margin of approximately 8.7%[1]. - Adjusted EBITDA for Q3 2024 was $183.6 million, with an adjusted EBITDA margin of approximately 27.7%[1]. - Revenue for the three months ended September 30, 2024, was $662,410,000, an increase from $636,302,000 in the same period of 2023, representing a growth of approximately 4.4%[23]. - Net income for the three months ended September 30, 2024, was $57,366,000, compared to $87,850,000 in the same period of 2023, showing a decrease of about 34.6%[23]. - Basic net income per share attributable to common stockholders for the three months ended September 30, 2024, was $0.50, down from $0.72 in the prior year, a decline of approximately 30.6%[23]. - Net income for the nine months ended September 30, 2024, was $173,375, down from $224,302 in the same period of 2023, representing a decrease of approximately 22.7%[24]. - Total revenue for the nine months ended September 30, 2024, was $1,956,170, compared to $1,906,055 in 2023, indicating an increase of approximately 2.6%[26]. Buyer Engagement - Active buyers decreased by 0.4% year-over-year to 91.2 million, while the number of habitual buyers fell by 4.8% to 6.8 million[1]. - The company reactivated 6.4 million buyers, up 5.6% from the prior year, and acquired 5.3 million new buyers[1]. Guidance and Future Outlook - Q4 2024 guidance anticipates consolidated GMS to decline in the low to mid single-digit percentage range year-over-year[11]. - The take rate for Q4 2024 is expected to be 22.3%, with an adjusted EBITDA margin guidance of 28-29%[11]. Expenses and Profitability - Operating expenses for the three months ended September 30, 2024, totaled $389,953,000, up from $358,919,000 in the prior year, indicating a rise of approximately 8.6%[23]. - Adjusted EBITDA margin for the nine months ended September 30, 2024, was 27.1%, slightly down from 27.2% in the same period of 2023[26]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $214,692, compared to $216,082 in the same period of 2023, showing a slight decrease of about 0.6%[27]. - Marketing expenses for the three months ended September 30, 2024, were $5,690, slightly down from $5,763 in the same period of 2023[27]. Assets and Liabilities - Total current assets as of September 30, 2024, were $1,320,681,000, a decrease from $1,570,446,000 as of December 31, 2023, representing a decline of about 15.9%[22]. - Total liabilities as of September 30, 2024, were $3,066,506,000, down from $3,229,115,000 as of December 31, 2023, indicating a reduction of approximately 5.0%[22]. Cash Flow - Net cash provided by operating activities increased to $437,510 for the nine months ended September 30, 2024, compared to $410,408 in 2023, reflecting a growth of about 6.5%[24]. - Cash and cash equivalents at the end of the period were $818,939, up from $741,958 at the end of September 30, 2023, marking an increase of approximately 10.4%[24]. - Net cash used in investing activities decreased to $36,759 for the nine months ended September 30, 2024, from $53,983 in 2023, a reduction of about 32%[24]. Strategic Initiatives - Etsy's investments in Gifting initiatives led to a tripling of gift ideas available, with approximately 5,000 suggestions now offered[5]. - The company plans to continue investing in strategic growth while maintaining profitability, focusing on enhancing customer engagement and frequency[18]. - Etsy's "House of Brands" portfolio includes Depop and Reverb, which operate independently but benefit from shared expertise[16]. - The company emphasizes the importance of trustworthiness in its marketplaces to attract and retain active communities of buyers and sellers[19]. Foreign Exchange Impact - The company reported a foreign exchange loss of $5,699 for the nine months ended September 30, 2024, compared to a gain of $4,846 in the same period of 2023[26]. Currency Impact - Currency-neutral Gross Merchandise Sales (GMS) declined by 4.4% for the quarter ended September 30, 2024, compared to a decline of 0.1% in the same quarter of 2023[25].