Loading...
•
Dec 31, 2024
Etsy Q4 2024 Earnings Report
Etsy achieved its highest-ever quarterly revenue in Q4 2024 despite facing GMS headwinds.
Key Takeaways
Etsy reported record revenue of $852.2 million in Q4 2024, growing 1.2% year-over-year. However, consolidated GMS declined by 6.8% due to pressures on consumer discretionary spending and a highly competitive retail environment. Net income rose 56% year-over-year to $129.9 million, benefiting from the absence of prior-year restructuring costs. Non-GAAP adjusted EBITDA also reached a record $250.6 million with a margin of 29.4%.
Record quarterly revenue of $852.2 million, up 1.2% year-over-year.
Consolidated GMS fell 6.8% year-over-year to $3.7 billion.
Net income increased 56% to $129.9 million, with a net income margin of 15.2%.
Cash and cash equivalents totaled $811.2 million at year-end.
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 expects Q1 2025 GMS to decline at a rate similar to Q4 2024 but anticipates long-term growth opportunities through investments in discovery and buyer engagement.
Positive Outlook
- Take rate expected to remain strong at ~23%.
- Continued improvements in Etsy Ads to drive revenue growth.
- Ongoing investments in personalization and buyer engagement.
- High free cash flow conversion provides financial flexibility.
- Scaling loyalty programs and marketing to attract repeat buyers.
Challenges Ahead
- GMS expected to decline at a similar rate to Q4 2024.
- Challenging macroeconomic environment impacting discretionary spending.
- Highly competitive e-commerce landscape with aggressive promotions.
- Potential headwinds from currency fluctuations.
- Increased costs related to platform investments and marketing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income