ETSY - Etsy Inc. (ETSY) Q1 2024 Earnings Call Transcript
2024-05-01 22:02:06 ET
Etsy, Inc. (ETSY)
Q1 2024 Earnings Conference Call
May 1, 2024 5:00 PM ET
Company Participants
Deb Wasser - Vice President, Investor Relations
Josh Silverman - Chief Executive Officer
Rachel Glaser - Chief Financial Officer
Conference Call Participants
Maria Ripps - Canaccord
Laura Champine - Loop
Michael Morton - MoffettNathanson
Naved Khan - B. Riley Securities
Trevor Young - Barclays
Ken Gawrelski - Wells Fargo
Mark Kelley - Stifel
Presentation
Deb Wasser
Hi, everyone, and welcome to Etsy's First Quarter 2024 Earnings Conference Call. I'm Deb Wasser, VP of Investor Relations. Today's prepared remarks have been prerecorded.
Joining me today are Josh Silverman, CEO; and Rachel Glaser, CFO. Once we are finished with the presentation, we will take questions from our publishing sell-side analysts on video.
Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business and our operating results as noted in the slide deck posted on our website for your reference. Our actual results may differ materially. Forward-looking statements involve risks and uncertainties, some of which are described in today's earnings release and our most recent Form 10-K and which will be updated in future periodic reports that we file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them.
Also during the call, we'll present both GAAP and non-GAAP financial measures, which are reconciled to GAAP financial measures in today's earnings press release or slide deck posted on our IR website, along with the replay of this call.
With that, I'll turn it over to Josh.
Josh Silverman
Thanks, Deb, and good afternoon, everyone. Etsy's consolidated results, while within our guidance range, were not where we wanted them to be. GMS was just shy of $3 billion, down 3.7% from last year. Revenue grew a bit up 0.8% to $646 million, and we delivered $168 million in adjusted EBITDA, a very healthy adjusted EBITDA margin of approximately 26%.
Etsy marketplace GMS was down 5.3% year-over-year, a bit of a disappointment as March GMS trends did not improve as we had anticipated. That said, I'm encouraged that the Etsy marketplace's record-high level of 92 million active buyers held up very well in another challenging quarter for our type of goods, signaling to us that while buyers shopped a bit less with us than they did in the prior year period, we have some comfort that these trends are cyclical rather than structural.
To that point, while U.S. unemployment is low and inflation data is mixed, consumer sentiment remains depressed, which some speculate can be attributed to the very high cost of money. Consumer wallets remain squeezed so there's often a little left after paying for food, gas, rent and child care. And there's significant data indicating that the largest e-commerce platforms have primarily been able to grow by selling everyday essentials at very low prices.
Macroeconomic conditions also continue to be quite challenging in our other top markets, the U.K. and Germany. These headwinds are real, do not appear to be abating and are impacting our sales. Stiff headwinds mean that our product and marketing initiatives have to work even harder to drive growth. In the first quarter, we shipped meaningful improvements to the customer experience, positively impacting GMS. Just not enough to offset the headwinds to our baseline business performance....
Etsy, Inc. (ETSY) Q1 2024 Earnings Call Transcript