Slide 1: Q4 2024 Financial Results
Q4 2024 Financial Results February 19, 2025
Slide 2: 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 first quarter 2025 and underlying assumptions; our expectations regarding improved G
Slide 3: 2024 was a year of strong profitability and significant progress
2024 was a year of FY 24 Consolidated GMS FY 24 Consolidated Revenue strong profitability and significant progress $12.6B $2.8B -4.4% Y/Y and -4.5% Y/Y +2.2% Y/Y strengthening the Etsy currency neutral basis marketplace, despite pressure on GMS FY 24 Consolidated Adj. EBITDA FY 24 Consolidated FCF $78
Slide 4: We'll make Etsy more Etsy. The starting point for Special.
4 Rather than trying to become more like everyone else, we’ll chart our own course toward ‘special’ in order to gain greater buyer consideration. We’ll make Etsy more Etsy. The starting point for Special. 4
Slide 5: Dialing up Differentiation to increase Consideration
Seller Search Visibility Page We aim to become the starting point for Special Dialing up Differentiation to increase Consideration 2024: 2025: Introduced ‘Quality Score’ Adding ‘Higher order’ insights to Quality Score, like level of craftsmanship Launched Seller Search Prioritizing Visibility Page r
Slide 6: Fueling Frequency: From better Gifting
We aim to become the starting point for Special Fueling Frequency: From better Gifting… 2024: Gifting Gifting GMS outperformed the marketplace Gifting % of GMS grew to 29% Grew Gift card sales 6 All data reflect Etsy Marketplace results.
Slide 7: Fueling Frequency: to better Personalization
Customer experiences could be meaningfully better: We aim to become the starting point for Special Current example of a seller’s personalization instructions Fueling Frequency: …to better Personalization 2024: Gifting 2025: Personalization Gifting GMS outperformed ~1/3 of buyers come to sitewide by
Slide 8: Fueling Frequency: 'Etsy Insider'
‘Etsy Insider’ member hub We aim to become the starting point for Special Fueling Frequency: ‘Etsy Insider’ 2024: 2025: Fall launch of beta Loyalty Encouraging frequency program to targeted and engagement signs occasional buyers Continue to test, learn and iterate to inform our path forward 8
Slide 9: Fueling Frequency: Focus on marketing efficiencies
Paid social highlights We aim to become the starting point for Special Human Connections Fueling Frequency: Focus on marketing efficiencies 2024: 2025: Deepened investments in Mix will emphasize paid social connected TV and paid social Leveraged brand marketing Deploy ML to accelerate to spotlight Gi
Slide 10: Powering Discovery and Inspiration on the Etsy App
We aim to become the starting point for Special Powering Discovery and Inspiration on the Etsy App 2024: 2025: Innovation in ‘purchase Revamping our navigation occasion’ journeys e.g. and browsing surfaces Gifting Gifting and Deals - to be Launched App redesign: prominently integrated into refreshed
Slide 11: Creating a powerful customer relationship flywheel
Creating a powerful customer relationship flywheel Evolve our surfaces to become more browsable Create more personalized on-site experiences Capture vastly more + enriched data about consumers’ interests, inclinations, identities and habits Generate more personalized marketing Build more powerful Tre
Slide 12: We remain focused on our Sellers' success
We remain focused on our Sellers’ success 8/10 Etsy sellers are women¹ 9/10 Etsy sellers are one-person businesses¹ 5.6M 2024 Etsy Marketplace Active Sellers Approximately half sell exclusively on Etsy¹ Nearly all work from home¹ 12 ¹ November 2024 seller census, available in our 2024 Annual Report
Slide 13: Depop was a stellar performer in 2024
13 Depop was a stellar performer in 2024, Utilizing AI to ease seller listings and surface personalized items to buyers and we believe is still early in its growth journey 2024 GMS $789M, up 31.6% (+30.8% constant currency) ● ~60% Y/Y U.S. GMS growth ● Significant acceleration in global listings1 ● F
Slide 14: Reverb finds success with used and like-new music gear
Reverb finds success with used and like-new music gear 2024 GMS $918M, down 2.6% (-3.1% constant currency) ● Reverb performed slightly better than the music industry, which was down 2.8% Y/Y, impacted by inflation and other factors1 ● The launch of the Reverb Outlet contributed to double-digit percent
Slide 15: We grew consolidated revenue and delivered strong profitability in Q4 24
We grew consolidated revenue and delivered strong profitability in Q4 24, despite challenging GMS performance Consolidated Results Q4 24 GMS Q4 24 Revenue Q4 24 Adjusted EBITDA $3.7B $852M $251M -6.8% Y/Y, -6.9% Y/Y +1.2% Y/Y 29.4% Adj. EBITDA Margin constant currency basis +180 bps y/y take-rate exp
Slide 16: Revenue grew due to take rate expansion; gross margin leverage drove EBITDA
Revenue grew year-over-year, due Gross margin leverage drove adjusted to consolidated take rate expansion EBITDA expansion and strong profit flow through Incremental Consolidated Take Rate Bridge Consolidated Adjusted EBITDA and Adjusted Q4 23 vs. Q4 24 EBITDA Margin 22.8% Q4 23 vs. Q4 24 21.0% +140 b
Slide 17: Product Development spend decreased; deepened Performance Marketing investment
Q4 24 consolidated Product Development spend decreased Y/Y; we deepened investments in Performance Marketing channels Consolidated Q4 24 Consolidated Q4 24 Product Development spend Marketing spend -5.1% Y/Y +22% Y/Y -6% Y/Y 17
Slide 18: Reactivating buyers has been an important win
Reactivating buyers has been an important win; and Etsy continues to attract many millions of first-time buyers Q4 24 Active Buyers Q4 24 New Buyers Q4 24 Reactivated Buyers 89.6M 6.9M 9.8M -2.6% Y/Y -17.6% Y/Y +1.3% Y/Y Q4 24 Repeat Buyers Q4 24 Habitual Buyers Q4 24 GMS / Active Buyer1 36.1M 6.4M $
Slide 19: Capital light business model delivers healthy balance sheet and strong cash flow
Capital light business model delivers a healthy balance sheet and strong cash flow Trailing Twelve Month Consolidated Free Cash Flow ($M) Cash Balance 12/31/241 $1.2B Q4 24 Consolidated Free Cash Flow $304M In Q4 2024, we converted ~90% of our Adj. EBITDA to free cash flow on a trailing twelve month b
Slide 20: Consolidated Guidance as of February 19, 2025
Consolidated Guidance as of February 19, 2025 Q1 25 Guidance GMS We currently anticipate that consolidated Q1 25 GMS will decline at a rate similar to the year-over-year performance reported for Q4 24 Take Rate ~23% Adjusted EBITDA Margin ~25-26% Please note that our guidance assumes currency exchan
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Q4 24 Etsy Marketplace GMS breakdown by category and geography
Q4 24 Etsy Marketplace GMS breakdown by category and geography Etsy marketplace Category GMS (%) Etsy marketplace Geography GMS (%) 4% Our top categories declined on a Y/Y basis Top 6 categories represented ~88% of U.S. Buyer GMS and non-U.S. Buyer GMS GMS both declined Y/Y Metrics presented represe
Slide 24: Etsy Marketplace Active Buyers
Etsy Marketplace Active Buyers -2.6% Y/Y Q4 24 had a decline in U.S. and international active buyers Active buyers are buyers who have made at least one purchase in the last 12 months. 24
Slide 25: New Buyers and Reactivated Buyers
New Buyers Reactivated Buyers A buyer is considered new if they use a unique e-mail address that has never been used for a purchase on *Average reactivated buyers pre-COVID is average of quarterly data for the periods Q1 2017 through the Etsy marketplace. Metrics presented are for the Etsy marketpla
Slide 26: Habitual Buyers and Repeat Buyers
Habitual Buyers Repeat Buyers1 1 Metrics presented are for the Etsy marketplace on a Trailing Twelve Month basis. Repeat Buyers exclude Habitual Buyers on this slide. 26
Slide 27: Condensed Consolidated Balance Sheets
Condensed As of December 31, 2024 As of December 31, 2023 Consolidated (in thousands) Cash and cash equivalents $ 811,178 $ 914,323 Balance Sheets Short-term investments Accounts receivable, net 228,322 8,702 236,118 24,734 Funds receivable and seller accounts 189,558 265,387 Property and equipment,
Slide 28: Condensed Consolidated Statement of Operations (Quarter)
Condensed Three months Three months Consolidated ended 12/31/24 ended 12/31/23 (in thousands) Statement of Revenue $ 852,162 $ 842,322 Cost of revenue 217,691 255,757 Operations Gross profit Marketing 634,471 285,165 586,565 261,076 Product development 111,466 117,488 General and administrative 82,70
Slide 29: Condensed Consolidated Statement of Operations (Twelve Months)
Condensed Twelve months Twelve months Consolidated ended 12/31/24 ended 12/31/23 (in thousands) Statement of Revenue $ 2,808,332 $ 2,748,377 Cost of revenue 774,554 828,675 Operations Gross profit Marketing 2,033,778 856,565 1,919,702 759,196 Product development 443,056 469,332 General and administra
Slide 30: Condensed Consolidated Statement of Cash Flows
Condensed Twelve months ended 12/31/24 Twelve months ended 12/31/23 Consolidated (in thousands) Net income $ 303,281 $ 307,568 Statement of Net cash provided by operating activities 752,469 705,513 Net cash used in investing activities (53,101) (73,307) Cash Flows Net cash used in financing activitie
Slide 31: Reconciliation of Quarterly Net Income to Adj. EBITDA
Reconciliation of Quarterly Net Income to Adj. EBITDA 4Q24 3Q24 2Q24 1Q24 4Q23 (in thousands) Net income $ 129,906 $ 57,366 $ 53,005 $ 63,004 $ 83,266 Excluding: Stock-based compensation expense 68,155 69,292 74,717 70,683 68,476 Depreciation and amortization 26,402 27,739 27,087 26,846 23,033 Provi
Slide 32: Reconciliation of Annual Net Income to Adj. EBITDA
Reconciliation of Annual Net Income to Adj. EBITDA Year ended December 31, 2024 (in thousands) Net income $ 303,281 Excluding: Stock-based compensation expense 282,847 Depreciation and amortization 108,074 Provision for income taxes 107,494 Interest and other non-operating income, net (17,176) Forei
Slide 33: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the company's financia
Slide 34: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the company's financia