ETSY Q4 2024 Earnings

Call Details

• Call Title: Etsy, Inc. Q4 2024 Earnings Call
• Date: February 19, 2025 at 1:30 PM UTC
• Management Team:
  • Deb Wasser (VP of Investor Relations)
  • Josh Silverman (CEO)
  • Lanny Baker (CFO)
  • Kruthi Patil Goyal (President and Chief Growth Officer)
  • Brad Miner (Chief Marketing Officer)

Call Summary

Financial Performance

• Consolidated full-year GMS was down 4% year over year to $12.6B for 2024.
• Full-year consolidated revenue was a record $2.8B, up about 2% year over year on a reported basis.
• Full-year adjusted EBITDA was $782M with adjusted EBITDA margin of 27.8% for 2024.
• Consolidated Q4 GMS was approximately $3.7B, down 6.8% year over year for the quarter.
• Consolidated Q4 revenue increased 1.2% year over year to $852M, and Q4 adjusted EBITDA was $251M, up 6% year over year.
• Q4 consolidated adjusted EBITDA margin was 29.4%, which was above the outlook range of 28% to 29% and about 140 basis points higher than the prior year.
• Trailing twelve-month GMS per active buyer was $121, down 3.5% year over year.

Guidance

• First quarter 2025 consolidated GMS is expected to decline at a rate similar to Q4 2024 year over year performance.
• First quarter 2025 consolidated take rate is expected to be approximately 23%.
• First quarter 2025 consolidated adjusted EBITDA margin is expected to be approximately 25% to 26%.
• The company declined to provide a specific consolidated full-year GMS outlook for 2025.
• Full-year planning assumes modest deleverage in consolidated product development spend to fund AI/ML hiring and an intention to keep consolidated marketing spend as a percentage of revenue fairly constant year over year.
• Management expects adjusted EBITDA margins to be stronger in the second half of 2025 than in the first half, consistent with historical seasonality.