Q1 2024
Financial Results
May 1, 2024
Forward-looking Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to: statements relating to our financial guidance for the second quarter 2024 and outlook for full year 2024 and underlying assumptions; our ability to invest in future growth while delivering on profitability; our ability to build buyer consideration; our ability to reignite Etsy marketplace growth; and our product development and marketing goals.
Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "aim," "anticipate," "believe," "could," "enable," "estimate," "expect," "goal," "intend," "may," "outlook," "plan," "potential," "target," "will," or similar expressions and derivative forms and/or the negatives of those words.
Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include but are not limited to: (1) the level of demand for our services or products sold in our marketplaces; (2) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (3) the fluctuation of our quarterly operating results; (4) our failure to meet our publicly announced guidance or other expectations; (5) any real or perceived inaccuracies in our operational metrics; (6) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber-related events; (7) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (8) macroeconomic events that are outside of our control; (9) operational and compliance risks related to our payments systems; (10) our ability to recruit and retain employees; (11) our ability to compete effectively; (12) enforcement of our marketplace policies; (13) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (14) risks related to our environmental, social, and governanceactivities and disclosures; (15) our efforts to expand our operations outside of the United States; (16) acquisitions that may prove unsuccessful or divert management attention; (17) failure to deal effectively with fraud (18) compliance with evolving regulations, including in the area of privacy and data protection; and (19) litigation and regulatory matters, including intellectual property claims. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date hereof. We disclaim any obligation to update forward-looking statements.
This presentation is a high-levelsummary of our Q1 2024 financial results. For more information please refer to our press release dated May 1, 2024 and filings with the SEC. Please see the appendix for a reconciliation of the non-GAAP financial measures used in this presentation to their respective most directly comparable financial measures, where available, calculated in accordance with GAAP.
For a discussion of our TAM analysis and information about how we define active buyers, new buyers, reactivated buyers, repeat buyers and habitual buyers, see our most recent Annual Report on Form 10-K.
Q1 24 Consolidated results in line with guidance
Etsy marketplace GMS was $2.6 billion, down 5.3% Y/Y*, a bit of a disappointment as March GMS did not improve as we had anticipated
Q1 24 Consolidated GMS | Q1 24 Consolidated Revenue | Q1 24 Consolidated Adj. EBITDA |
$3.0B | $646M | $168M |
-3.7% Y/Y and -4.1% | +0.8% Y/Y | 26.0% Adj. EBITDA Margin |
Y/Y on a currency | ||
neutral basis |
GMS, revenue, and adjusted EBITDA are consolidated unless otherwise indicated. *Etsy marketplace GMS down 5.6% Y/Y on a currency neutral basis.
Product Development & Marketing investments improving customer experiences
Signs that efficiency is even higher | Paid marketing efficiencies | Full funnel activations |
in our Product Development teams: | include: | across channels to |
● Double digit growth in # of | ● In-sourcing of Etsy paid | support Gift Mode, |
experiments per product | search efforts | key occasions and |
engineer utilizing M/L, as well as | ● Scale up of mid-funnel | sales events |
in gross GMS from experiments* | channels | |
● Total # of experiments per | ||
engineer up 20% |
Product & engineering experimentation statistics are for the Etsy marketplace only and are based upon Y/Y data for Q1 24
*This represents an estimate of annualized gross product GMS from the efforts of Etsy marketplace's product & engineering team
Consideration
Get buyers to think of Etsy more often
Gift ModeTM + Loyalty Program
Quality | Great Value | Reliability |
Make it easier to find | Drive association that there | Make shopping on Etsy |
'the good stuff' on Etsy | are great deals on Etsy | more convenient |
Highlighting and promoting | Machine learning investments in | |
Delivery Speed | ||
Search & Listing Quality | great value | |
X-Border in Europe | ||
More predictable Delivery Cost | ||
Payment Improvements | ||
Making Etsy the destination for gifting: successful launch of Gift Mode
Q1 24 Etsy sitewide 'Gifting' GMS meaningfully outpaced overall Etsy marketplace performance - up low single digits Y/Y.
We also significantly outgrew select online gifting-focused peers*
Football's 'Big Game' Ad | Drew Barrymore Chief Gifting Officer | Jason and Travis Kelce Ad |
Etsy Gifting GMS: Estimate based upon word 'gift' in the listing title, shipped with a gift message, or other signal the item was purchased as a gift
*Source: Consumer Edge spend data from sampling of credit card transactions from U.S. online 'gifting' peers Zola, Zazzle, Minted, Uncommon Goods, Hallmark and Mark and Graham.
We have a robust roadmap to continue elevating the Gifting experience!
"Gift Teasers" | Video messages | Occasion Shopping within Gift Mode |
Doing more than ever to ensure we highlight the very best of Etsy - differentiating Etsy in a sea of commoditized merchandise
Suppress &
Remove
Listings that violate
Etsy's policies
Doing more than ever to ensure we highlight the very best of Etsy - differentiating Etsy in a sea of commoditized merchandise
Suppress & | Elevate |
Remove | better-quality |
Listings that violate | listings in Search & |
Recommendations | |
Etsy's policies | |
Doing more than ever to ensure we highlight the very best of Etsy - differentiating Etsy in a sea of commoditized merchandise
Suppress & | Elevate | Curate | Organize |
Remove | better-quality | the marketplace to | …quality listings on |
Listings that violate | listings in Search & | show the newest and | our marketplace |
Recommendations | best listings on Etsy | through better site | |
Etsy's policies | |||
segmentation | |||
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Etsy Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 19:43:05 UTC.