Highest-ever quarterly revenue achieved in Q4 24
BROOKLYN, N.Y., Feb. 19, 2025 /PRNewswire/ — 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 financial results for its fourth quarter and full year ended December 31, 2024.
“Despite facing significant GMS headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability, while simultaneously investing in our future,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “Foundational improvements in the Etsy marketplace, particularly in quality, reliability, and in making our app a place for discovery, are already enhancing customer experiences – which we believe will further differentiate the Etsy experience, driving consideration and purchase frequency as we work to get back to GMS growth.”
Fourth quarter 2024 performance highlights include:
“As Etsy’s 2024 results again demonstrate, the Company’s marketplaces create tremendous value for the millions of sellers we serve, and our efficient operating model consistently delivers very healthy financial performance,” said Lanny Baker, Etsy’s newly appointed Chief Financial Officer. “Etsy expanded margins and generated consolidated adjusted EBITDA of over $780 million. In addition, by converting approximately 90% of that adjusted EBITDA to Free Cash Flow, the Company was able to deploy a portion of this cash to reduce share count by 12.2 million shares. This financial strength – in combination with Etsy’s highly differentiated product offerings, passionate customer base, and world class team – give me confidence in our future, as we work to re-accelerate GMS growth.”
Fourth Quarter and Full Year 2024 Financial Summary
(in thousands, except percentages; unaudited)
The financial results of Elo7 have been included in our consolidated financial results until August 10, 2023 (the date of sale). The financial measures and key operating metrics we use are:
Three Months Ended
December 31,
% (Decline)
Growth
Y/Y
Year Ended
December 31,
% (Decline)
Growth
Y/Y
2024
2023
2024
2023
GMS (1)
$ 3,735,942
$ 4,007,404
(6.8) %
$ 12,586,952
$ 13,161,196
(4.4) %
Revenue
$ 852,162
$ 842,322
1.2 %
$ 2,808,332
$ 2,748,377
2.2 %
Marketplace revenue
$ 607,310
$ 615,795
(1.4) %
$ 2,020,744
$ 1,997,190
1.2 %
Services revenue
$ 244,852
$ 226,527
8.1 %
$ 787,588
$ 751,187
4.8 %
Gross profit
$ 634,471
$ 586,565
8.2 %
$ 2,033,778
$ 1,919,702
5.9 %
Operating expenses
$ 479,339
$ 471,107
1.7 %
$ 1,653,570
$ 1,639,861
0.8 %
Net income
$ 129,906
$ 83,266
56.0 %
$ 303,281
$ 307,568
(1.4) %
Net income (loss) margin
15.2 %
9.9 %
530 bps
10.8 %
11.2 %
(40) bps
Adjusted EBITDA (Non-GAAP)
$ 250,641
$ 235,514
6.4 %
$ 781,538
$ 754,311
3.6 %
Adjusted EBITDA margin (Non-GAAP)
29.4 %
28.0 %
140 bps
27.8 %
27.4 %
40 bps
Active sellers (2)
8,134
9,035
(10.0) %
8,134
9,035
(10.0) %
Active buyers (2)
95,459
96,483
(1.1) %
95,459
96,483
(1.1) %
(1)
Consolidated GMS for the year ended December 31, 2024 includes Etsy marketplace GMS of $10.9 billion, Reverb GMS of $917.9 million, and Depop GMS of $788.9 million.
(2)
Consolidated active sellers and active buyers includes Etsy marketplace active sellers and active buyers of 5.6 million and 89.6 million, respectively, as of December 31, 2024. Consolidated active sellers and active buyers excludes Elo7 active sellers and buyers as of December 31, 2024 and 2023.
Etsy Marketplace Operating Highlights
Our “Right to Win” is centered on key elements that we believe make the Etsy marketplace a better place to shop and sell and, which, in turn, will bring more buyers, lead to increased frequency and size of purchases, and build trust in the Etsy marketplace. In 2024, we continued to focus on building buyer consideration by making it easier to ‘find the best stuff’ on Etsy, driving association that Etsy sellers offer great value, and making shopping on Etsy more reliable and dependable. During the year we:
Select highlights of fourth quarter business initiatives for the Etsy marketplace are outlined below:
Product: During the holiday season, we focused on providing a reliable and joyful experience. For example, we:
Marketing: We worked to make Etsy more top-of-mind for buyers during the holidays, including:
Below are a few fourth quarter 2024 operational highlights for our subsidiary marketplaces:
Reverb
Depop
Consolidated First Quarter 2025 Financial Guidance and Outlook Commentary
Q1 25 Guidance
GMS
We currently anticipate that consolidated first quarter 2025 GMS will decline at a rate similar to the year-over-year performance reported for the fourth quarter of 2024
Take Rate
~23%
Adjusted EBITDA Margin
~25-26%
Regarding Etsy’s focus areas for 2025, Mr. Silverman commented, “We are moving with urgency to increase buyer engagement, drive more sales, and return to GMS growth. By infusing ‘Discovery’ more deeply into the Etsy marketplace, we are working towards building more joyful shopping journeys for our buyers while simultaneously unlocking a wealth of insights about their evolving tastes and preferences. This will support our vision to craft increasingly personalized and resonant experiences that feel uniquely tailored to them.”
Silverman continued, “2025 marks Etsy’s 20th anniversary. For the past two decades, Etsy has been the home for creativity and self expression. In today’s world of automation and generic, commoditized goods, we believe our mission has never been more important. As I look ahead to what’s in store, I feel deep conviction in the power of our brand, Etsy’s millions of incredible sellers, and our strong team.”
Regarding Etsy’s 2025 financial outlook, Mr. Baker commented, “We see several factors that we believe should position the Etsy marketplace for improved GMS performance beyond the first quarter. In addition, we’re committed to maintaining a strong bottom line and generating healthy free cash flow, while also investing in the things which will further differentiate Etsy, build our opportunity, and drive our long-term growth.”
Please note that our guidance assumes currency exchange rates remain unchanged at current levels.
With respect to our expectations under “Consolidated First Quarter 2025 Financial Guidance and Outlook Commentary” above, reconciliation of Adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from Adjusted EBITDA; in particular, stock-based compensation expense, foreign exchange (gain) loss, acquisition, divestiture, and other corporate structure-related expenses, and other non-recurring expenses can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted.
Webcast and Conference Call Information
Etsy will host a video webcast conference call to discuss these results at 8:30 a.m. Eastern Time today, which will be live-streamed via the Company’s Investor Relations website (investors.etsy.com) under the Events section. Published research analysts will be provided an opportunity to ask company management live questions on the call. A copy of the earnings call presentation will also be posted to our website.
A replay of the video webcast will be available through the same link following the conference call starting at 12:00 p.m. Eastern Time today, for at least three months thereafter.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces — which collectively create a “House of Brands” — share our mission, common levers for growth, similar business models, and a strong commitment to use business and technology to strengthen communities and empower people. Our primary Etsy marketplace is the global destination for unique, creative goods from independent sellers. It connects artisans and entrepreneurs with thoughtful consumers seeking items that reflect their tastes and values. In addition to providing them with access to tens of millions of buyers, we offer tools and services to help sellers grow.
Etsy, Inc.’s “House of Brands” portfolio also includes fashion resale marketplace Depop and musical instrument marketplace Reverb. Each Etsy, Inc. marketplace operates independently, while benefiting from shared expertise in product development, marketing, technology, and customer support.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Investor Relations Contact:
Deb Wasser, Vice President, Investor Relations
Sarah Marx, Director, Investor Relations
Media Relations Contact:
Lauren Bayse, Senior Director, Corporate Communications
Cautionary Statement Regarding Forward-Looking Statements
This press release contains or references forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial guidance for the first quarter of 2025 and underlying assumptions; expectations regarding improved GMS performance beyond the first quarter; the ability of our foundational improvements to drive consideration and purchase frequency; our ability to get back to GMS growth; the ability of our operating model to deliver healthy financial performance; our ability to re-accelerate GMS growth; the impact of our “Right to Win”, and our work to build a more joyful shopping experience. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “aim,” “anticipate,” “believe,” “could,” “enable,” “estimate,” “expect,” “goal,” “intend,” “may,” “outlook,” “plan,” “potential,” “target,” “will,” or similar expressions and derivative forms and/or the negatives of those words.
Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include but are not limited to: (1) the fluctuation of our quarterly operating results; (2) our failure to meet our publicly announced guidance or other expectations; (3) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (4) any real or perceived inaccuracies in our operational metrics; (5) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber incidents; (6) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (7) operational and compliance risks related to our payments systems; (8) the global scope of our business; (9) our ability to recruit and retain employees; (10) our ability to compete effectively; (11) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (12) our environmental, social, and governance Impact strategy; (13) our efforts to expand internationally; (14) acquisitions, dispositions, or strategic partnerships that may prove unsuccessful or divert management attention; (15) our ability to deal effectively with fraud or other illegal activity; and (16) litigation and evolving global legal and regulatory requirements, including privacy and data protection laws, tax laws, product liability laws, laws regulating speech and platform monitoring or moderation, antitrust laws, intellectual property and counterfeiting regulations. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.
Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
Etsy, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
As of December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 811,178
$ 914,323
Short-term investments
228,322
236,118
Accounts receivable, net
8,702
24,734
Prepaid and other current assets
89,931
129,884
Funds receivable and seller accounts
189,558
265,387
Total current assets
1,327,691
1,570,446
Property and equipment, net
236,706
249,794
Goodwill
137,089
138,377
Intangible assets, net
413,898
457,140
Deferred tax assets
145,630
137,776
Long-term investments
111,725
86,676
Other assets
45,043
45,191
Total assets
$ 2,417,782
$ 2,685,400
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$ 25,979
$ 29,920
Accrued expenses
374,947
353,553
Finance lease obligations—current
6,148
6,079
Funds payable and amounts due to sellers
189,558
265,387
Deferred revenue
19,213
14,635
Other current liabilities
49,268
41,207
Total current liabilities
665,113
710,781
Finance lease obligations—net of current portion
93,482
99,620
Deferred tax liabilities
7,957
13,192
Long-term debt, net
2,288,083
2,283,817
Other liabilities
122,013
121,705
Total liabilities
3,176,648
3,229,115
Total stockholders’ deficit
(758,866)
(543,715)
Total liabilities and stockholders’ deficit
$ 2,417,782
$ 2,685,400
Etsy, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts; unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Revenue
$ 852,162
$ 842,322
$ 2,808,332
$ 2,748,377
Cost of revenue
217,691
255,757
774,554
828,675
Gross profit
634,471
586,565
2,033,778
1,919,702
Operating expenses:
Marketing
285,165
261,076
856,565
759,196
Product development
111,466
117,488
443,056
469,332
General and administrative
82,708
92,543
353,949
343,242
Asset impairment charges
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