ETSY Q1 2024 Earnings

Call Details

• Call Title: Etsy, Inc. Q1 2024 Earnings Call
• Date: May 1, 2024 at 9:00 PM UTC
• Management Team:
  • Deb Wasser (VP of Investor Relations)
  • Josh Silverman (Chief Executive Officer)
  • Rachel Glaser (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated GMS was $3 billion, down approximately 3.7% year-over-year.
• Consolidated revenue increased 0.8% year-over-year to $646 million.
• Consolidated adjusted EBITDA was $168 million, representing an adjusted EBITDA margin of approximately 26%.
• Etsy Marketplace standalone GMS was $2.6 billion, down 5.3% year-over-year.
• Consolidated take rate was 21.6% in Q1, up from 20.7% in the prior-year quarter.
• Consolidated adjusted EBITDA margin declined about 60 basis points year-over-year.
• Consolidated product development spend decreased 5% year-over-year to $110 million.
• Consolidated marketing spend increased 12% year-over-year to $192 million, with consolidated brand spend up 59% year-over-year.

Guidance

• Consolidated GMS for Q2 is expected to decline year-over-year similar to Q1, with downside being a mid single digit decline and upside being the top end of a low single digit decline.
• Consolidated take rate and adjusted EBITDA margin for Q2 are expected to be similar to Q1 actuals.
• Subsidiaries are expected to continue to pose approximately a 300 basis point headwind to consolidated adjusted EBITDA margin in Q2.
• The company reiterated prior full-year commentary on take rate, revenue, and adjusted EBITDA margin without changing those prior expectations.
• Current view suggests a modest acceleration in year-over-year consolidated GMS in the second half of the year, subject to meaningful macro volatility.
• Management emphasized limited visibility and stated that outcomes remain sensitive to consumer discretionary trends and timing shifts like Easter and spring break.