Summary by Futu AI
Etsy Inc reported Q2 2024 results with revenue increasing 3% year-over-year to $647.8 million, while net income decreased 14.4% to $53.0 million. Gross Merchandise Sales (GMS) declined 2.1% to $2.9 billion, reflecting a challenging macroeconomic environment impacting consumer discretionary spending. The company's marketplaces connected 8.8 million active sellers and 96.6 million active buyers.Adjusted EBITDA rose 7.9% to $179.4 million, with margin expanding to 27.7%. Marketplace revenue grew 3.8% to $470.4 million, driven by payments expansion and increased GMS from Depop. Services revenue increased slightly by 0.9% to $177.4 million, primarily due to growth in shipping label revenue.Etsy maintained a strong financial position with $1.0 billion in cash and short-term investments. The company continued to invest in marketing and product development while implementing cost-saving measures. Looking ahead, Etsy faces ongoing challenges from macroeconomic factors, including inflation, interest rates, and changing consumer preferences, but remains focused on leveraging its marketplace expertise across its "House of Brands."
