Etsy, Inc. (NASDAQ:ETSY) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Deb Wasser - VP of IR Josh Silverman - CEO Lanny Baker - CFO Conference Call Participants Eric Sheridan - Goldman Sachs Youssef Squali - Truist Securities Lee Horowitz - Deutsche Bank Maria Ripps - Canaccord Curtis Nagle - BofA Securities Steven Forbes - Guggenheim Mark Kelley - Stifel John Colantuoni - Jefferies Deb Wasser Hi, everyone, and welcome to Etsy's Fourth Quarter and Full Year 2024 Earnings ...

Financial Data and Key Metrics Changes - The company reported first quarter deliveries of 1,991 homes at an average price of $925,000, generating home sales revenue of $1.84 billion [6][27] - Adjusted gross margin was 26.9%, exceeding guidance by 65 basis points, while SG&A expense as a percentage of home sales revenue was 13.1%, 40 basis points above guidance [6][34] - Net income was $177.7 million or $1.75 per share diluted, below expectations primarily due to impairments and delays in joint venture land sales [26][27] Business Line Data and Key Metrics Changes - The company signed 2,307 net contracts for $2.3 billion in the first quarter, up 13% in units and 12% in dollars compared to the previous year [7][30] - The average sales price of orders remained flat compared to the fourth quarter of 2024, with a healthy deposit conversion ratio of 82% [8][10] - Spec homes represented approximately 55% of sales and 52% of deliveries, with about 3,200 spec homes in inventory at quarter end [15][18] Market Data and Key Metrics Changes - Demand was strongest in the North and Mid-Atlantic regions, with solid performance in markets like Houston, Dallas, and California [9][10] - The company noted mixed results in the spring selling season, with affordability constraints and growing inventories affecting sales, particularly at the lower end [10][12] - Approximately 26% of buyers paid all cash, with loan-to-value ratios for mortgage buyers at about 68% [14][37] Company Strategy and Development Direction - The company is maintaining its full-year guidance for deliveries, average price, adjusted gross margin, SG&A margin, and community count growth [11][39] - The long-term outlook for the new home market remains positive, particularly for the luxury niche, which constitutes over 70% of the business [12][13] - The company is actively managing spec starts based on local market conditions, expecting to reduce overall spec starts in the near term [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales activity, noting that while demand remains healthy, mixed results have been observed in certain markets [10][12] - The company plans to adjust land spend conservatively if the mixed market conditions persist, while still being selective in land acquisitions [63][64] - Management highlighted the importance of balancing pace and price to generate higher returns, indicating a willingness to adjust strategies based on market conditions [135][136] Other Important Information - The company ended the first quarter with over $2.3 billion in liquidity, including approximately $575 million in cash [36][37] - The company has extended the maturities of its credit facilities to February 2030 and upsized its revolver to $2.35 billion [25][37] - The company is targeting community count growth of 8% to 10% in fiscal 2025, aiming for 440 to 450 communities by year-end [19][43] Q&A Session Summary Question: Inventory levels and construction stages - Management noted that higher inventory levels were due to more specs under construction and at further stages of completion, aimed at meeting delivery guidance [51][53] Question: Spring selling season and production pipeline - If the spring selling season remains mixed, the company plans to reduce land spend and be more conservative in certain markets [62][64] Question: Gross margin outlook and pricing incentives - The company expects second quarter gross margin to be 27.25%, driven by a favorable mix of higher-margin products [68][70] Question: Demand trends in specific markets - Management indicated that while some markets are experiencing pressure, others are performing well, and recent activity has shown signs of improvement [78][79] Question: Land cost inflation and deal flow - The company is experiencing low to mid-single digit land cost inflation and is finding unique opportunities in the land market, particularly in suburban areas [117][120]

Financial Data and Key Metrics Changes - For the year 2024, net income per share was $3.12, up from $0.40 per share in 2023, marking the sixth consecutive quarter of positive EPS and fourth straight quarter of sequential earnings growth [10] - Net revenue for VYJUVEK in Q4 was $91.1 million, bringing total revenue for 2024 to $290.5 million, with gross margins consistent with prior quarters [12][46] - The company ended Q4 with $344.9 million in cash on hand and $749.6 million in total cash plus short-term and long-term investments, reflecting a quarterly growth of about $55 million [49] Business Line Data and Key Metrics Changes - VYJUVEK's U.S. launch is progressing well, tracking in the top tier of rare disease launches, with strong early signs of efficacy [7] - Jeune Aesthetics reported strong Phase 1 data for KB301, with plans to start a Phase 2 study later in 2025, achieving $341 million in net revenue within 18 months of launch [11] Market Data and Key Metrics Changes - The U.S. market for VYJUVEK has seen over 500 reimbursement approvals, with a strong access landscape continuing into 2025 [14] - The company expects to launch VYJUVEK in the EU and Japan, with over 1,000 identified deaf patients in Germany and France [30][72] Company Strategy and Development Direction - The company aims to successfully launch VYJUVEK in the EU and Japan, translate early efficacy signs into strong results across cystic fibrosis and alpha-1 antitrypsin programs, and prepare for the anticipated launch of B-VEC for treating lesions in the eye of DEB patients [8][9] - The company is committed to treating DEB globally and is progressing its second product, KB803, for ocular complications associated with DEB [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a global peak sales estimate of over $1 billion for VYJUVEK, emphasizing the strong patient benefits and compliance rates observed [51][56] - The company is aware of potential competition in the DEB market but believes the value proposition of VYJUVEK will maintain its market share [90][91] Other Important Information - Research and development expenses for Q4 were $13.5 million, driven by increased clinical trial-related costs and manufacturing costs for pipeline candidates [47] - Selling, general, and administrative expenses for Q4 were $31.3 million, reflecting increased personnel-related costs and VYJUVEK sales and marketing costs [47] Q&A Session Summary Question: Was there any year-end stocking in Q4 for VYJUVEK? - Management confirmed there was no substantial difference in Q4 compared to previous quarters regarding stocking or inventory [61][62] Question: How is enrollment going for the CF study? - Enrollment in Cohort 3 has begun, and it is progressing well with several active sites [64][66] Question: What are the expectations for Europe in the second half of the year? - Approximately 600 patients are identified in Germany and 400 in France, with pricing strategies discussed for both markets [72][73] Question: Can you quantify the impact of the annual cap on VYJUVEK in 2024? - About 8% of commercial patients have been on the cap consistently since the beginning [102] Question: What is the update on the regulatory process? - The delay in the CHMP decision was due to the need for a favorable label, which has now been achieved [88]

Financial Data and Key Metrics Changes - Fiscal 2024 revenue for the ongoing business was $1.75 billion, a decline of 12.1% compared to the prior year, primarily due to discrete items in 2023 [38] - Full-year adjusted gross margin was 44.6%, an increase of 470 basis points versus last year, reflecting cost-saving measures and improved sales mix [39] - Fourth-quarter revenue was $495 million, exceeding expectations, with ongoing business revenue growing 3% year-over-year [42] - Fourth-quarter adjusted gross margin was 44%, a year-over-year increase of 620 basis points [45] - Full-year diluted earnings per share was $0.91, compared to $0.15 in 2023, indicating significant profitability improvement [41] Business Line Data and Key Metrics Changes - Saucony grew 7% in the fourth quarter, with low teens growth in the US and over 20% in EMEA, while Merrell posted a 1% increase [17][25] - Sweaty Betty's revenue was down 6% in the quarter, but gross margin improved by nearly 900 basis points [30] - Wolverine brand's revenue performance was encouraging, but trends remained inconsistent [32] Market Data and Key Metrics Changes - Strong growth in wholesale and international distributor channels was noted, partially offset by a decline in direct-to-consumer business [42] - The work group revenue increased by 21% in the fourth quarter, driven by strong demand for core franchises [44] Company Strategy and Development Direction - The company is focused on building brand capabilities and modernizing product lines to align with consumer trends [11] - Strategic investments include opening an innovation hub in Boston and enhancing marketing leadership across brands [12][14] - The company plans to accelerate growth in 2025, with a focus on new product launches and lifestyle expansion [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction and brand-building strategies, highlighting the potential for significant growth [65] - The outlook for 2025 includes expected revenue growth of 2.5% to 4.3%, with a focus on maintaining profitability while investing in brand growth [51][54] Other Important Information - The company reduced net debt to $496 million, a 33% reduction from 2023, improving financial stability [48] - Inventory at the end of the fourth quarter was $241 million, down approximately 36% from last year, indicating effective inventory management [47] Q&A Session Summary Question: Saucony's growth and new doors - Management confirmed plans for 900 new doors for Saucony, with many being online, and emphasized responsible growth in the brand [76][77] Question: Merrell's new doors and reception - Management noted that Merrell is also opening new doors, particularly in female-focused specialty retail accounts, with positive early returns [78][79] Question: Gross margin sustainability - Management expressed satisfaction with gross margin improvements and indicated ongoing opportunities for further enhancements [81][84] Question: Interest expense guidance - Expected net interest and other expenses for 2025 are projected to be around $25 to $30 million, down from $39 million in 2024 [105] Question: State of the run specialty channel - Management reported that Saucony is gaining market share in the run specialty channel, driven by product innovation and strong performance [141][142]

Wix.com Ltd. (Wix) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Emily Liu - IR Avishai Abrahami - CEO and Co-Founder Nir Zohar - President and COO Lior Shemesh - CFO Conference Call Participants Ygal Arounian - Citigroup Elizabeth Porter - Morgan Stanley Deepak Mathivanan - Cantor Fitzgerald Josh Beck - Raymond James Andrew Boone - Citizens JMP Securities Operator Good day, and thank you for standing by. Welcome to the Wix Fourth Quarter and Full Year Earnings Conferenc ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for 2024 reached a record $535 million, reflecting a 13% increase in constant currency [9][25] - Free cash flow also set a record at $294 million, marking the fifth year in the past six with over 50% conversion of adjusted EBITDA to free cash flow [9][38] - Organic sales grew 4% for the full year, with adjusted EBITDA margins improving by 120 basis points on a constant currency basis [23][25] Business Line Data and Key Metrics Changes - Semiconductor solutions experienced a 14% organic growth, driven by improved fab utilization and demand for advanced packaging applications [27][29] - Circuitry solutions grew 12% organically, benefiting from investments in AI and data centers [30] - The assembly solutions business grew 1% organically, with low single-digit improvement in the second half of the year [36] Market Data and Key Metrics Changes - The electronics business grew 7% organically, while the industrial and specialty segment declined by 1% [24] - Demand for advanced packaging solutions is increasing, particularly in AI data centers and electric vehicles [19][30] - The industrial solutions segment saw a 2% organic decline, primarily due to lower commodity price-based surcharges and soft European industrial markets [36] Company Strategy and Development Direction - The company is focusing on high-value niches in the electronics industry, particularly in semiconductor and advanced packaging markets [12][42] - A strategic decision was made to sell McDermott Graphics Solutions for $325 million to enhance the portfolio and focus on higher growth areas [14][16] - The company aims to continue penetrating the fastest growing segments and expects high single-digit organic growth in the electronics segment for 2025 [43][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued demand growth in high-performance computing and data storage, which should drive product lines related to wafer level and advanced packaging [42] - There are uncertainties in the global industrial production outlook, with potential risks from tariffs impacting demand [46][85] - The company anticipates a $30 million impact from the sale of the graphics business and a $15 million foreign exchange headwind for 2025 [48][49] Other Important Information - The company generated a record $294 million in free cash flow, with a strong balance sheet and net leverage at 2.8 times [38][40] - Capital expenditures were higher than historical averages, with plans to invest in strategic projects supporting long-term growth [39][141] - R&D spending is expected to increase slightly as a percentage of sales, with investments in new labs and technology [150][156] Q&A Session Summary Question: How does the company view its relative performance compared to electronics markets? - The company outperformed the electronics market in 2024, with growth in high-value subsegments driving performance [61][63] Question: What are the expectations for margin expansion this year? - Margin expansion is expected to continue, driven by product mix and ongoing raw material deflation [137] Question: Can you provide insights on the PCB market expectations? - The advanced PCB market is expected to grow faster than trailing edge boards, with the company positioned to outperform [96][98] Question: What is the outlook for the company's business in China? - The company had a good year in China, with expectations for continued growth driven by the electric vehicle market [163][165]

Financial Data and Key Metrics Changes - The company reported adjusted pretax income of $147 million and adjusted EBITDA of $363 million for 2024, despite facing oversupplied agricultural markets with low prices and limited volatility [9][17] - Net income attributable to the company was $45 million or $1.31 per diluted share, compared to adjusted net income of $55 million or $1.59 per diluted share in Q4 2023 [16] - Full year gross profit decreased by 7% to $694 million from $745 million in 2023, primarily due to lower ethanol margins [17] Business Line Data and Key Metrics Changes - The trade segment reported record fourth quarter adjusted pretax income of $54 million, up from $47 million in Q4 2023, driven by strong harvest execution and stable elevation margins [22] - Renewables generated fourth quarter pretax income of $16 million, down from $33 million in 2023, with EBITDA of $40 million compared to $73 million in the previous year [25][26] - Nutrient and industrial business reported a slight increase in adjusted pretax income to $3 million, while full year EBITDA decreased to $57 million from $62 million in 2023 [27] Market Data and Key Metrics Changes - The company noted that the agricultural businesses were lower due to soft industry fundamentals and limited grower engagement [13] - The effective tax rate for the quarter was 20%, with a full year rate of 15%, influenced by federal tax credits related to cellulosic ethanol production [18] Company Strategy and Development Direction - The company is focusing on integrating operations with Skyland Grain to optimize outcomes and enhance its presence in the North American agricultural supply chain [14][31] - A new segment reporting structure will be implemented in 2025 to streamline operational efficiency and enhance collaboration across trade and nutrient businesses [29] - The company anticipates an increase in US corn planted acres, which is expected to benefit its nutrient and agronomy business [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the agribusiness outlook despite challenges from lower grain prices and reduced farmer engagement [32] - The company plans to continue investing in projects aimed at reducing carbon intensity in ethanol production and expanding renewable diesel feedstock merchandising [37][39] - Management acknowledged uncertainty around the regulatory environment but remains committed to responsible decision-making to optimize shareholder value [39] Other Important Information - The company generated cash flow from operations of $100 million in Q4 2024, down from $122 million in Q4 2023, with a year-end cash position of $562 million [19][20] - Capital spending for the year was $149 million, with a long-term debt to EBITDA ratio of 1.8 times, below the target of less than 2.5 times [21] Q&A Session Summary Question: Can you elaborate on the investment opportunities around lowering carbon intensity? - Management indicated that the return profile of these investments is evolving and will be included in the capital expenditure environment as clarity increases [42][44] Question: What are the expected synergies from the consolidation of the NNI and Trade Group? - Management noted that while there are opportunities for consolidation, the primary goal is to create a unified solution for producers, enhancing operational efficiency [45][47] Question: How did the company manage to deliver solid results despite margin compression in ethanol? - Management attributed the strong performance to effective execution of their business model, focusing on controllable costs and maximizing core operations [49][51] Question: What are the potential impacts of trade tariffs on the business? - Management stated that the company is not significantly affected by major tariff swings due to its domestic focus, although some aspects may be impacted [56][58] Question: Can you provide an update on the integration of Skyland? - Management confirmed that the integration is progressing well, with expectations for a $30 to $40 million EBITDA contribution in 2025 [59][62] Question: How does the nutrient input requirement differ between corn and soybeans? - Management explained that corn requires substantially more nutrient input, leading to higher margins compared to other crops [68] Question: What is the outlook for the merchandising environment for corn in 2025? - Management noted that recent price appreciation has led to increased optimism among farmers, although some may have sold their crops prematurely [81][84]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $983 million, with annual recurring revenue (ARR) at $2.26 billion and earnings per share (EPS) at $0.89, all exceeding the midpoint of guidance [4][5] - On an as-adjusted basis, revenue increased by 9% for the quarter and 6% for the year, with ARR up 16% [5][26] - Gross margins improved to 71.7%, marking the first time exceeding 70%, with EBITDA margins ending at 27.2% for 2024 [5][9] Business Line Data and Key Metrics Changes - AECO segment reported 18% ARR growth for both the quarter and the year, with operating income at 31.2% [28] - Field Systems experienced a slight decline in revenue for the year but saw a 2% increase in the fourth quarter, with ARR growth at 21% [30][31] - Transportation and Logistics segment reported 8% growth in both revenue and ARR for the quarter and year, driven by the MAPS and Transporeon businesses [32] Market Data and Key Metrics Changes - North America remains the strongest market, particularly in data centers and energy sectors, with a healthy sentiment among customers [47][49] - The freight market remains challenging, but Transporeon achieved record bookings in both the fourth quarter and the year [14][98] Company Strategy and Development Direction - The company’s strategy, termed "Connect and Scale," focuses on digitizing and transforming work in construction, geospatial, and transportation industries, with a combined addressable market exceeding $70 billion [7][10] - The company aims to achieve $3 billion in ARR, $4 billion in revenue, and 30% EBITDA margins by 2027 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment, noting strong hiring trends among customers as a catalyst for technology adoption [50] - The company anticipates continued growth in recurring revenue and is well-positioned to capitalize on future opportunities, particularly in AI and data-centric solutions [16][17] Other Important Information - The company has initiated a $1 billion share repurchase program and remains committed to executing its capital allocation strategy [20][22] - The divestiture of the mobility business was completed, and the company is focused on tuck-in acquisitions to enhance its offerings [19][21] Q&A Session Summary Question: Current macro environment and customer sentiment - Management noted that North America is performing well, particularly in data centers and energy markets, with healthy overall sentiment despite some regional differences [47][49] Question: Impact of tariffs on financials - Management indicated that the exposure to tariffs is minimal due to the shift towards software services, and contingency plans are in place [52][54] Question: 2025 guidance and growth expectations - Management expects about two-thirds of ARR growth to come from existing customers, with significant opportunities for cross-selling and up-selling [58][59] Question: AI and operational efficiency - Management sees potential for operational efficiencies through AI, particularly in R&D and customer support functions, but quantifying this impact remains challenging [60][64] Question: Unique data and product enhancements - Management highlighted the unique ability to connect physical and digital workflows, which positions the company well for future product innovations [69][72] Question: Federal government business impact - The federal government business is expected to be flat in 2025, with ongoing subscription conversions contributing to growth [78] Question: TC1 rollout and growth contribution - Management expressed confidence in the TC1 rollout across regions, with strong customer feedback and bookings performance [82][84] Question: Transporeon performance and future outlook - Transporeon achieved record bookings despite a challenging freight market, and management expects strong performance when the market recovers [98][124] Question: Share repurchase plan and M&A impact - Management plans to initiate repurchases in Q1 and Q2, with flexibility to pursue M&A opportunities without compromising share repurchase commitments [131][133]

Karyopharm Therapeutics Inc. (NASDAQ:KPTI) Q4 2024 Earnings Call February 19, 2025 8:00 AM ET Company Participants Brendan Strong - SVP, IR Richard Paulson - President and CEO Reshma Rangwala - CMO & Head of Research Sohanya Cheng - CCO & Head of Business Development Lori Macomber - EVP, CFO, & Treasurer Conference Call Participants Colleen Kusy - Baird Maury Raycroft - Jefferies Unidentified Analyst - Barclays Jonathan Chang - Leerink Partners Unidentified Analyst - RBC Capital Markets Ed White - H.C. Wain ...

Financial Data and Key Metrics Changes - The underlying net income for 2024 increased by 14% year-on-year to approximately $300 million [14][63] - The core combined ratio for 2024 improved to 91%, a 2.4 percentage point improvement compared to the previous year [15][63] - The underlying return on equity for 2024 was 14.6%, at the upper end of the target range of 12% to 15% [16][63] - The diluted book value per share grew by 9.8% for the full year 2024 [63] Business Line Data and Key Metrics Changes - Continuing lines gross premiums written grew by 21% in the fourth quarter, with net premiums written increasing by 28% [19][54] - For the full year, continuing lines growth was 10%, with insurance and services growing by 14% and reinsurance by 5% [21][67] - The accident and health segment saw double-digit growth, while casualty remained roughly flat [20][76] Market Data and Key Metrics Changes - The property book grew by 25% in 2024, benefiting from the hard market in US catastrophe reinsurance [70] - The specialty segment experienced a gross premium written increase of 38% in 2024 [73] - The reinsurance segment saw a 5% increase in premiums, with notable growth in Bermuda property and specialty lines [68] Company Strategy and Development Direction - The company aims to focus on improving business performance following the completion of its major reshaping efforts [10][96] - There is a commitment to maintaining underwriting discipline and targeting growth in areas that align with profitability and risk targets [20][76] - The company is rationalizing its equity stakes in MGAs, reducing from 36 to 20, to focus on core underwriting capabilities [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong operational performance and the effectiveness of reshaping actions taken [9][45] - The company anticipates that the impact of previous underwriting decisions will diminish going forward, allowing for improved performance [21][63] - Management highlighted the importance of supporting customers affected by recent catastrophic events, such as the California wildfires [25][26] Other Important Information - The company returned over $1 billion to investors in 2024, significantly improving its balance sheet and structure [13][45] - The CMIG transaction is expected to be accretive to book value by 4% and increase earnings per share by over 20% [12][44] - The company has maintained a strong financial position with a BSCR capital ratio of 214% and a debt to capital ratio of 24.8% [44][91] Q&A Session Summary Question: What are the expectations for future premium growth? - Management expects headline premium growth in 2025 to be similar to the continuing lines premium growth in 2024, despite the impact of runoff being insignificant [67] Question: How is the company addressing the recent catastrophic losses? - The company has implemented retrocession protection to mitigate earnings volatility and is committed to supporting affected customers [28][26] Question: What is the outlook for the MGA strategy? - The company is focused on strengthening its MGA distribution strategy and has entered into 19 new or expanding partnerships in 2024 [32]