Etsy's revenue for Q3 2024 was $662.4 million, reflecting a year-over-year growth of 4.1% compared to $636.3 million in Q3 2023. This growth was driven by increases in both Marketplace revenue (up 3.3% to $476.1 million) and Services revenue (up 6.2% to $186.3 million). Gross merchandise sales (GMS) for Q3 2024 declined by 4.1% year-over-year to $2.9 billion, compared to $3.04 billion in Q3 2023. This decline was attributed to macroeconomic pressures on consumer discretionary spending, particularly in key markets such as the U.S., U.K., and Germany. Additionally, discrete events like geopolitical uncertainties and weather conditions created headwinds for the business.

‍Net income for Q3 2024 was $57.4 million, a significant decline of 34.7% compared to $87.9 million in Q3 2023. The net income margin also dropped from 13.8% in Q3 2023 to 8.7% in Q3 2024, reflecting a 510 basis point contraction. Adjusted EBITDA for Q3 2024 was $183.6 million, showing a modest year-over-year increase of 0.8% from $182.2 million in Q3 2023. However, the Adjusted EBITDA margin decreased slightly to 27.7% from 28.6% in the prior year, indicating a 90 basis point decline.

‍Operating expenses increased by 8.6% year-over-year to $390.0 million in Q3 2024, compared to $358.9 million in Q3 2023. This increase was primarily driven by higher marketing expenses, which rose by 22.1% to $196.5 million, reflecting investments in digital and non-digital marketing campaigns. Marketing expenses as a percentage of revenue increased to 29.7% from 25.3% in the prior year. Product development expenses decreased by 5.9% year-over-year to $107.3 million in Q3 2024, primarily due to reduced employee compensation costs following workforce reductions in late 2023. This decrease allowed Etsy to gain leverage as product development expenses grew slower than revenue. Cost of revenue decreased by 1.7% year-over-year to $185.6 million in Q3 2024, driven by lower costs related to refunds, employee compensation, and cloud hosting. This reduction contributed to a gross profit increase of 6.5% to $476.8 million, with gross margin improving to 72.0% from 70.3% in Q3 2023.

‍Etsy's liquidity position remains strong, with $1.0 billion in cash, cash equivalents, and short-term investments as of September 30, 2024. The company also generated positive operating cash flows of $437.5 million in the first nine months of 2024, underscoring its ability to sustain operations and meet financial obligations.Active buyers and sellers experienced slight declines. Active buyers decreased by 0.7% year-over-year to 96.7 million, while active sellers fell by 3.2% to 8.5 million. This reflects challenges in maintaining engagement levels amid a dynamic macroeconomic environment.

‍Etsy's stock repurchase program continued, with $464.3 million spent on share buybacks in the first nine months of 2024. As of September 30, 2024, $259.9 million remained available under the June 2023 Stock Repurchase Program, and an additional $1 billion was authorized in October 2024.