Etsy Q4 revenue exceeded expectations, with 92 million active buyers

It is learned that on February 21, Etsy, the largest handicraft e-commerce platform in the United States, released its fourth-quarter performance report ending December 31, 2023. Etsy's revenue achieved steady growth due to strong performance in the advertising and payment sectors.

In the fourth quarter of 2023, Etsy's total revenue reached $842.3 million, 1.75% higher than the analyst consensus of $827.81 million and 4.34% higher than $807.24 million in the same period last year. However, Etsy's earnings per share were 62 cents, 20.51% lower than the analyst consensus of 78 cents.

In the three months ended December 31, Etsy's consolidated GMS (global gross merchandise sales) was $4 billion, down 0.2% year-on-year; Etsy's market GMS was $3.6 billion, down 1.4% year-on-year. Etsy pointed out that the main reasons for the decline in consolidated GMS include: a decline in non-essential spending, a sluggish economic environment, fierce market competition, heavy discounts on goods, and the sale of Brazilian business Elo7.

It is worth mentioning that the number of active buyers on Etsy increased again this quarter, reaching a record high of 92 million. Compared with the same period last year, Etsy added more than 8 million new buyers (a year-on-year increase of 3%). Among them, the number of active buyers in the US market increased slightly, while the number of active buyers in the international market increased significantly.

The financial report also shows that in the fourth quarter of 2023, Etsy's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached a record high of US$235.5 million, and the adjusted EBITDA margin was approximately 28%, which was the same as the same period last year. As of December 31, 2023, Etsy had US$1.2 billion in cash and cash equivalents, short-term and long-term investments.

Looking ahead, Etsy expects low-single-digit year-over-year GMS declines and adjusted EBITDA margins to be between 21-21.5% in the first quarter of 2024. For the full year, Etsy expects revenue growth to outpace GMS growth and adjusted EBITDA margins to be flat through 2023.

It is learned that after the financial report was released, Etsy's stock price fell 4.05% in the after-hours trading session, closing at $74.0.1. Since the beginning of this year, Etsy's stock price has fallen by 4%.

Editor ✎ Nicole/

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