ETSY Q4 2022 Earnings

Call Details

• Call Title: Etsy, Inc. Q4 2022 Earnings Call
• Date: February 22, 2023 at 10:00 PM UTC
• Management Team:
  • Deb Wasser (VP of Investor Relations)
  • Josh Silverman (Chief Executive Officer)
  • Rachel Glaser (Chief Financial Officer)
  • Jessica Schmidt (Senior Director of Investor Relations)

Call Summary

Financial Performance

• Full year consolidated GMS for 2022 was $13.3B, which was down slightly versus the prior year.
• Full year consolidated revenue was a record $2.6B, up about 10% year-over-year on a reported basis.
• Full year consolidated non-GAAP adjusted EBITDA was approximately $717M, essentially flat year-over-year.
• Fourth quarter consolidated GMS declined 4% year-over-year to $4.0B and was nearly flat on a currency-neutral basis.
• Fourth quarter consolidated revenue increased 12.6% year-over-year to $807M, and adjusted EBITDA was $227M, representing a 28.1% adjusted EBITDA margin.
• Foreign exchange was a headwind of approximately 330 basis points in Q4 2022, down from 400 basis points in Q3 2022.

Guidance

• First quarter 2023 consolidated GMS was guided to a range of $2.95B to $3.15B.
• First quarter 2023 consolidated revenue was guided to a range of $600M to $640M.
• First quarter 2023 adjusted EBITDA margin was guided to a range of 26% to 27%.
• Management stated that week-to-week GMS volatility in early 2023 warranted a fairly broad guidance range for Q1.
• Management warned that broad macro shifts (consumer spending moving to services/essentials) could negate a return to mid/upper-teens GMS growth expected in a stable environment for H2 2023.
• Scenario planning is being used for 2023 with hiring slowed and discretionary spend tightened to preserve margin optionality.