From Nasdaq: 2024-05-02 11:36:00

Etsy, Inc. reported first-quarter 2024 earnings of 48 cents per share, a 9.4% decrease year-over-year. Revenues reached $645.95 million, up 0.8%, driven by services revenues and growth in active sellers and reactivated buyers. However, marketplace revenues were down slightly from the year-ago quarter.

A major positive for Etsy was the acquisition of 5.7 million new buyers, bringing the total number of active buyers to 91.6 million, up 1.9% year-over-year. Services revenues increased by 3.2%, with Etsy ads playing a key role in revenue growth.

Despite a 3.7% decrease in gross merchandise sales (GMS), Etsy’s gross margin expanded to 71% year-over-year. Operating expenses rose by 6.4%, resulting in an operating income of $68.1 million, down from $78.2 million in the prior-year quarter.

For the second quarter of 2024, Etsy anticipates a similar take rate to Q1’24. GMS is expected to decline by a mid-single-digit percentage, while the adjusted EBITDA margin is expected to mirror the 26% reported in the first quarter.

Etsy currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the technology sector include Arista Networks, Alphabet, and Badger Meter, each with a Zacks Rank #1 (Strong Buy). These stocks have shown positive momentum and growth rates in the year-to-date period.



Read more at Nasdaq: ETSY’s Q1 Earnings Miss Estimates, Revenues Increase Y/Y