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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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