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Sep 30, 2023
Etsy Q3 2023 Earnings Report
Etsy's consolidated results aligned with expectations, demonstrating modest top-line growth and strong profitability in a challenging environment.
Key Takeaways
Etsy, Inc. reported its third quarter 2023 results, with consolidated revenue up 7.0% year-over-year to $636.3 million and a net income of $87.9 million. The company saw growth in active buyers and made progress in product development and marketing, while navigating a challenging macroeconomic environment.
Consolidated GMS increased by 1.2% year-over-year to $3.0 billion.
Active buyers grew by 4% year-over-year, reaching a new all-time high of 92 million.
Consolidated revenue grew 7.0% year-over-year to $636.3 million.
Consolidated net income was $87.9 million, reflecting an impairment charge in the third quarter of the prior year.
Etsy
Etsy
Etsy Revenue by Segment
Etsy Revenue by Geographic Location
Revenue by Segment
Marketplace Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Consolidated Revenue
CapyFin.com Forward Guidance
Etsy anticipates that GMS for Q4 2023 will decline in the low-single-digit range year-over-year, although this could shift to a mid-single-digit decline if trends worsen. The estimated take rate for Q4 2023 is approximately 20.8%, and the adjusted EBITDA margin is projected to be between 26-27%.
Positive Outlook
- Etsy is focused on areas that will positively impact the company in the months and years ahead.
- Etsy is committed to delivering profitable growth for sellers, shareholders, and stakeholders.
- Core Etsy marketplace margin implied in guidance approaches the long-term target of 30%.
- Consolidated EBITDA dollars are expected to be up sequentially.
- Etsy expects to finish the year just a bit shy of being a 'rule of 40' company for the Etsy marketplace.
Challenges Ahead
- The volatile macro climate will make it challenging for Etsy to grow this quarter.
- Seasonally higher marketing spend is expected.
- A more competitive advertising landscape is anticipated.
- Guidance assumes currency exchange rates remain unchanged at current levels.
- There's no doubt that this is an incredibly challenging environment for spending on consumer discretionary items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income