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Dec 31, 2023
Etsy Q4 2023 Earnings Report
Etsy achieved record quarterly revenue in Q4 2023, driven by solid GMS flow through, strong growth in Etsy Ads, and good contribution from payments.
Key Takeaways
Etsy reported its Q4 2023 results, achieving record consolidated revenue of $842.3 million, a 4.3% increase year-over-year. Active buyers reached an all-time high of 92 million, and the company saw improvements in United States active buyer trends and strong international buyer growth. Consolidated GMS was $4.0 billion, a slight decrease of 0.7% year-over-year.
Consolidated revenue reached a record $842.3 million, up 4.3% year-over-year.
Active buyers reached a new all-time high of 92 million, increasing 3% year-over-year.
Consolidated net income was $83.3 million, down 24.0% year-over-year, largely due to restructuring and other exit costs of $27 million.
Consolidated GMS was $4.0 billion, down 0.7% year-over-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 GMS to decline in the low-single-digit range year-over-year in Q1 2024, with potential for improvement throughout the quarter. They expect revenue growth to outpace GMS growth, with full-year take-rate in line or ahead of Q1. The company also expects to maintain healthy margins, with consolidated Adjusted EBITDA margins for 2024 at least similar to 2023.
Positive Outlook
- Etsy expects revenue growth to outpace GMS growth.
- Full year take-rate in line or ahead of the first quarter.
- Maintain very healthy margins, with consolidated Adjusted EBITDA margins for 2024 at least similar to 2023.
- Etsy marketplace product and marketing investments kicking in starting in the second quarter.
- Etsy anticipates GMS to decline in the low-single-digit range year-over-year in Q1 2024, with potential for improvement throughout the quarter.
Challenges Ahead
- First quarter to be low point in year-over-year growth in GMS and revenue
- GMS for the first quarter of 2024 is currently estimated to decline in the low-single-digit range on a year-over-year basis.
- Guidance reflects a slow start to the quarter.
- If trends fail to improve as expected, decline could become a mid-single-digit decline.
- Guidance assumes currency exchange rates remain unchanged at current levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income