Etsy Q2 Earnings: Revenue Beat, EPS Beat, GMS Down 2.1%, Company Making 'Excellent' Progress On 'Bold Moves'

Etsy Inc ETSY reported financial results for the second quarter after the market close on Wednesday. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Etsy reported second-quarter revenue of $647.8 million, beating the consensus estimate of $629.57 million, according to Benzinga Pro. The company reported quarterly earnings of 46 cents per share, beating estimates of 44 cents per share.

Consolidated GMS (gross merchandise sales) totaled $2.9 billion in the quarter, down 2.1% year-over-year. Etsy marketplace GMS was $2.5 billion, down 3.2% year-over-year.

Within the Etsy marketplace, active buyers increased 1% year-over-year after the company reactivated 6.4 million buyers, up 8.5% from the prior year period. GMS per active buyer declined 3.2% on a trailing 12-month basis, but Etsy noted this metric “continued to stabilize on a sequential basis.”

Etsy said it repurchased approximately $150 million of its stock in the second quarter. The company ended the quarter with $1.1 billion in cash, equivalents and short- and long-term investments.

“Gifting is proving to be a winning theme — driving growth as a key source of differentiation for Etsy. We are making excellent progress with other bold moves and investments meant to raise consideration among buyers — to help us stand apart more than ever. While this is a challenging environment for our type of goods, we are focused on reigniting Etsy marketplace growth and gaining market share,” said Josh Silverman, CEO of Etsy.

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Outlook: Etsy expects third-quarter GMS to decline in the low single-digit range on a year-over-year basis. The company anticipates third-quarter adjusted EBITDA margin of approximately 27%.

Etsy reiterated that it expects full-year 2024 consolidated adjusted EBITDA margin to come in “at least the same as the 2023 result.”

Management Update: Etsy announced that CFO Rachel Glaser has decided to retire from her role. Etsy said it has retained an executive recruiting firm to assist in the search for her successor. Glaser will remain in her role until a successor is appointed. She will then stay with Etsy in an advisory capacity through June 30, 2025 to support a smooth transition.

Management will hold a conference call to discuss these results at 5 p.m. ET.

ETSY Price Action: At the time of writing, Etsy shares were down 0.20% after hours at $65.01, according to Benzinga Pro.

Photo: Sergei Elagin/Shutterstock.