Online marketplace Etsy, Inc., connecting creative buyers and sellers globally, announced its second-quarter results for 2024, showing a mix of gains and challenges. CEO Josh Silverman highlighted the acceleration of Etsy marketplace year-over-year GMS and higher consolidated revenue, crediting a strong focus on gifting as a key growth driver. Despite a 2.1 percent year-over-year drop in consolidated GMS to $2.9 billion, Etsy saw a 4.1 percent increase in gifting GMS, which now constitutes 27 percent of the total GMS.
Etsy’s marketplace GMS fell by 3.2 percent year-over-year to $2.5 billion, impacted by the divestiture of its Brazilian subsidiary Elo7. However, the company achieved notable milestones, including a 1.0 percent increase in active buyers to 91.5 million and reactivating 6.4 million buyers, an 8.5 percent rise from the previous year. Additionally, Etsy acquired 5.6 million new buyers, maintaining a retention rate above pre-pandemic levels.
Revenue for the quarter rose by 3.0 percent year-over-year to $647.8 million, driven primarily by marketplace revenue from payments and transaction fees. Despite this growth, net income decreased by $8.9 million to $53.0 million, reflecting a retroactive non-income tax expense.
Etsy’s adjusted Ebitda for Q2 was $179.4 million, with a margin of 27.7 percent, showing a 130 basis point improvement from the previous year. CFO Rachel Glaser emphasized Etsy’s strategic investments in gifting, quality initiatives, a new loyalty program, and app expansion, which contributed to their robust profit margins.
The company ended the quarter with $1.1 billion in cash and investments, repurchasing $150 million worth of shares. As Etsy navigates a challenging market, it remains committed to growth and differentiation through strategic investments.
