Etsy, Inc. reported its financial results for the third quarter and the first nine months of 2024, showing a modest increase in revenue but a decline in net income compared to the previous year. For the three months ended September 30, 2024, total revenue reached $662.4 million, a 4.1% increase from $636.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $1.96 billion, up 2.6% from $1.91 billion in 2023.
Marketplace revenue for Q3 2024 was $476.1 million, reflecting a 3.3% increase from $460.9 million in Q3 2023. Services revenue also grew by 6.2% to $186.3 million, driven by higher on-site advertising and shipping label revenue. Gross profit for the third quarter was $476.8 million, a 6.5% increase from $447.5 million in the prior year. However, net income for Q3 2024 fell to $57.4 million, down 34.7% from $87.9 million in Q3 2023. For the nine-month period, net income was $173.4 million, a decrease of 22.7% from $224.3 million in the same period of 2023.
The decline in net income was attributed to increased operating expenses, particularly in marketing, which rose by 22.1% to $196.5 million in Q3 2024, driven by higher digital marketing costs. Additionally, the company incurred restructuring charges related to workforce reductions, which included an 11% reduction in the Etsy marketplace workforce and a 13% reduction at Reverb.
Etsy's cash and cash equivalents totaled $818.9 million as of September 30, 2024, compared to $741.9 million a year earlier. The company reported positive operating cash flows of $437.5 million for the nine months ended September 30, 2024, an increase from $410.4 million in the same period of 2023.
Strategically, Etsy completed the sale of Elo7 in August 2023, which had previously impacted its financial metrics due to impairment charges. The company is also focusing on expanding its payment services, having received authorization to operate as a regulated payments institution in the European Economic Area.
Etsy's marketplaces connected 8.5 million active sellers and 96.7 million active buyers globally as of September 30, 2024. Gross Merchandise Sales (GMS) for Q3 2024 totaled $2.9 billion, with approximately 46% of GMS coming from international transactions. The company continues to face challenges from macroeconomic conditions, including inflation and changing consumer preferences, which may impact future performance.
About ETSY INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.