Etsy reports ‘anticipated’ Q3 results, GMS takes hit

Online marketplace platform Etsy has outlined its financials for the third quarter ended September 30, 2024, in which its gross merchandise sales (GMS) dropped 4.1 percent year-over-year reflecting “incremental pressure”.

The company’s marketplace GMS dropped 6 percent to 2.5 billion dollars, down 6.3 percent on a currency-neutral basis, while its active buyers decreased 0.4 percent to 91.2 million.

Consolidated net income also dropped, falling 30.5 million dollars YoY to 57.4 million dollars, while its margin was approximately 8.7 percent and its diluted net income per share came to 45 cents.

There was positivity in the way of consolidated revenue, which was up 4.1 percent to 662.4 million dollars, an uptick driven by growth in both Etsy’s Marketplace and Services revenue.

The company’s chief executive officer, Josh Silverman, said the results “came in roughly as anticipated”, and were despite the progress seen in its efforts to improve customer experiences, all of which he noted would “drive engagement and frequency over time”.

Silverman continued: “While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy even more Etsy - which we believe will lift our boat when the tide comes back in again."

For Q4, Etsy is forecasting a GMS decline in the low to mid single digit percentage range YoY, while its adjusted EBITDA is anticipated to be in the range of 28 to 29 percent.

Its implied guidance for FY24 expects consolidated GMS to decline in the low single digit percentage range, with an adjusted EBITDA of 27.4 to 27.7 percent.