Etsy Q2 Earnings Preview: The Stock Has Likely Found A Bottom (Rating Upgrade)

Introduction & Investment Thesis In Q1 FY24, Etsy generated $646M in revenue, which grew just 0.8% YoY, missing estimates, while Adjusted EBITDA declined 1.4% YoY to $167.9M with margins shrinking by 60 basis points to 26%. While overall GMS declined 3.7% YoY in the last quarter, the bright spot was that Etsy was able to reactivate its buyers on the platform, while Active Buyers also grew 1.9% YoY. At the same time, the company also saw its GMS from gifting grow in the low single digits after it launched it ...