Etsy(US:ETSY)2024-05-01 20:06Financial Performance - Consolidated GMS for Q1 2024 was $3.0 billion, down 3.7% year-over-year, with Etsy marketplace GMS at $2.6 billion, down 5.3% year-over-year[5] - Consolidated revenue increased to $646.0 million, up 0.8% compared to Q1 2023, with a take rate of 21.6%[5] - Consolidated net income was $63.0 million, down from $74.5 million year-over-year, resulting in a net income margin of approximately 9.8%[5] - Adjusted EBITDA for Q1 2024 was $167.9 million, with an Adjusted EBITDA margin of approximately 26.0%[5] - For the three months ended March 31, 2024, net income was $63,004,000, a decrease from $74,537,000 in the same period of 2023, representing a decline of approximately 15.5%[23] - Total revenue for the same period was $645,954,000, compared to $640,877,000 in 2023, indicating a slight increase of about 0.2%[23] - Adjusted EBITDA for the three months ended March 31, 2024, was not explicitly stated but is derived from net income adjusted for various expenses, including stock-based compensation and depreciation[26] - Adjusted EBITDA for Q1 2024 is $167,935,000, a decrease from $170,344,000 in Q1 2023[30] - Adjusted EBITDA margin for Q1 2024 is 26.0%, down from 26.6% in Q1 2023[30] - Net income for Q1 2024 is $63,004,000, compared to $74,537,000 in Q1 2023[30] Cash Flow and Assets - Cash and cash equivalents decreased to $788,837,000 as of March 31, 2024, down from $914,323,000 at the beginning of the period, reflecting a decrease of approximately 13.7%[24] - Total current assets amounted to $1,404,419,000 as of March 31, 2024, compared to $1,570,446,000 as of December 31, 2023, a decrease of about 10.6%[22] - The company reported a net cash provided by operating activities of $69,033,000 for the three months ended March 31, 2024, compared to $55,631,000 in 2023, an increase of about 24.0%[24] - The total stockholders' deficit increased to $(583,761,000) as of March 31, 2024, compared to $(543,715,000) at the end of 2023, indicating a worsening of approximately 7.4%[22] Marketing and User Engagement - Active buyers reached 91.6 million, a 1.9% increase year-over-year, while the number of habitual buyers decreased by 2.9% to 7 million[5] - The company continues to focus on disciplined investment in performance marketing channels to drive growth and improve seller advertising returns[10] - Marketing expenses for the three months ended March 31, 2024, were $91,811,000, a significant increase from $71,314,000 in the same period of 2023, reflecting a rise of approximately 28.8%[23] Product Development and Innovations - Etsy launched Gift Mode, an AI-driven gift shopping experience, with further product launches planned for Q2 2024[8] - Significant improvements were made to the search functionality, enhancing user engagement and context understanding[8] Stock and Liabilities - Etsy's stock repurchase program resulted in the repurchase of approximately $158 million worth of shares during Q1 2024[5] - Total liabilities were reported at $3,081,432,000 as of March 31, 2024, down from $3,229,115,000 at the end of 2023, indicating a reduction of approximately 4.6%[22] Future Outlook - Q2 2024 GMS is expected to decline similarly to Q1 2024, with potential for modest acceleration in the second half of the year[11] Other Financial Metrics - Currency-neutral Gross Merchandise Sales (GMS) declined by 4.1% for the quarter ended March 31, 2024, compared to a decline of 2.6% in the same quarter of 2023[25] - Stock-based compensation expense for Q1 2024 totals $70,683,000, an increase from $68,683,000 in Q1 2023[30] - Depreciation and amortization for Q1 2024 is $26,846,000, compared to $23,172,000 in Q1 2023[30] - Provision for income taxes in Q1 2024 is $16,651,000, significantly higher than $6,734,000 in Q1 2023[30] - Interest and other non-operating income for Q1 2024 is $(5,310,000), slightly improved from $(5,689,000) in Q1 2023[30] - Foreign exchange loss for Q1 2024 is $(6,255,000), compared to a gain of $2,618,000 in Q1 2023[30] - Acquisition and corporate structure-related expenses for Q1 2024 amount to $1,898,000, up from $289,000 in Q1 2023[30]