Wed Feb 19 12:50:00 UTC 2025: ## Etsy Reports Mixed Q4 2024 Results: Record Revenue Despite Missed Estimates
**NEW YORK, NY – February 20, 2025** – Online marketplace Etsy (ETSY) announced mixed results for its fourth quarter of 2024, reporting record revenue but missing analyst expectations. While revenue reached $852.2 million, a slight 1.2% year-over-year increase, it fell short of the projected $861.8 million. However, the company exceeded expectations on earnings-per-share (EPS), reporting $1.03 compared to the anticipated $0.93.
Despite the positive EPS, Etsy experienced a 6.8% decline in gross merchandise sales (GMS) to $3.7 billion, attributed to decreased consumer spending on non-essential items. This decrease impacted active buyer and seller numbers, with a 2.6% and 10% drop respectively. However, Etsy successfully re-engaged 9.8 million lapsed buyers and attracted nearly 6.9 million new buyers, showcasing effective customer retention strategies.
The company’s subsidiary, Depop, achieved record GMS since its acquisition, demonstrating growth in the re-commerce sector. Etsy’s net income still saw a significant 56% year-over-year increase to $129.9 million, fueled by cost-cutting measures. Adjusted EBITDA reached a record high of $250.6 million, maintaining a strong 29.4% margin.
Looking ahead, Etsy anticipates a continued GMS decline in the first quarter of 2025, similar to Q4, projecting a 23% take rate and an adjusted EBITDA margin between 25% and 26%. The company plans to continue investing in technology, including AI-powered marketplace enhancements and personalized shopping experiences, to boost buyer engagement and drive future GMS growth. Etsy remains focused on strengthening its unique marketplace position and navigating economic headwinds through strategic initiatives.
First Piper 