Etsy Q3 2022 Earnings Report
Key Takeaways
Etsy's Q3 2022 results showed a strong business performance despite a volatile environment. Consolidated revenue increased by 11.7% year-over-year to $594.5 million, while GMS decreased slightly by 3.3% year-over-year to $3.0 billion. The company reported a net loss of $963.1 million, primarily due to an impairment charge, but maintained a solid Non-GAAP Adjusted EBITDA of $167.8 million.
Consolidated GMS was $3.0 billion, a decrease of 3.3% year-over-year.
Consolidated revenue increased by 11.7% year-over-year to $594.5 million.
Net loss was $963.1 million, impacted by an impairment charge of $1.0 billion related to Depop and Elo7.
Non-GAAP Adjusted EBITDA was $167.8 million, with a margin of 28%.
Etsy
Etsy
Etsy Revenue by Segment
Etsy Revenue by Geographic Location
Forward Guidance
Etsy's guidance for Q4 2022 includes GMS of $3.6B to $4.0B, revenue of $700M to $780M, and an Adjusted EBITDA margin of approximately 27%.
Positive Outlook
- GMS: $3.6B to $4.0B
- Revenue: $700M to $780M
- Adjusted EBITDA margin: Approximately 27%
- Differentiated inventory across our House of Brands
- Variable cost model
Challenges Ahead
- Uncertainty in consumer spending on gift giving
- Uncertainty in online vs. in-mall shopping preferences
- Continued economic uncertainty
- Global macroeconomic uncertainty
- Volatility in general market conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income