Etsy's (ETSY) total revenue for 2024 reached $2.8 billion, representing a modest year-over-year growth of 2.2% compared to $2.75 billion in 2023. This growth was driven by increases in both Marketplace and Services revenue. Marketplace revenue grew by 1.2% to $2.02 billion, while Services revenue saw a stronger growth of 4.8%, reaching $787.6 million. Marketplace revenue accounted for 72% of total revenue, while Services revenue contributed 28%.

‍Gross profit for 2024 was $2.03 billion, reflecting a 5.9% increase from $1.92 billion in 2023. This improvement was achieved despite a slight decline in gross margin due to higher costs associated with payments processing and cloud-related hosting expenses. Operating expenses remained relatively stable at $1.65 billion, a marginal increase of 0.8% year-over-year, indicating effective cost management.

Etsy reported net income of $303.3 million for 2024, a slight decline of 1.4% compared to $307.6 million in 2023. The net income margin also decreased slightly to 10.8% from 11.2% in the prior year. This was primarily due to higher tax provisions and increased stock repurchase activities.

‍Adjusted EBITDA for 2024 was $781.5 million, up 3.6% from $754.3 million in 2023. The Adjusted EBITDA margin improved slightly to 27.8% from 27.4% in the previous year, reflecting operational efficiencies and disciplined expense management.

Etsy's cash flow from operating activities increased to $752.5 million in 2024, up from $705.5 million in 2023. This improvement was primarily driven by better management of prepaid expenses and other current assets. However, net cash used in investing activities decreased to $53.1 million, reflecting reduced net purchases of investments. Net cash used in financing activities increased significantly to $787.2 million, largely due to higher stock repurchases.

Etsy's global marketplace performance showed a decline in Gross Merchandise Sales (GMS) by 4.4% year-over-year, totaling $12.6 billion in 2024 compared to $13.2 billion in 2023. This decline was attributed to macroeconomic challenges and reduced consumer spending. However, the share of GMS processed through Etsy Payments increased to 98%, up from 94% in 2023, contributing to higher payments revenue.

‍Marketing expenses increased to $856.6 million in 2024, up from $759.2 million in 2023, driven by higher spending on digital and television advertising. This investment supported the company's efforts to attract and retain buyers and sellers, despite a 10% decline in active sellers to 8.1 million and a 1.1% decline in active buyers to 95.5 million.

Etsy's geographic revenue distribution remained stable, with the United States contributing $1.47 billion, the United Kingdom $320.9 million, and all other regions $1.02 billion. Revenue from regions outside the U.S. and U.K. grew significantly, reflecting Etsy's global expansion efforts.

Etsy ended 2024 with cash and cash equivalents of $811.2 million, down from $914.3 million at the end of 2023. The company also held $228.3 million in short-term investments and $111.7 million in long-term investments, providing a strong liquidity position. Additionally, Etsy has access to a $400 million senior secured revolving credit facility.

Etsy's stock repurchase program significantly impacted its financing activities, with $723.9 million spent on stock buybacks in 2024, compared to $577 million in 2023. This reflects the company's commitment to returning value to shareholders, although it also contributed to a reduction in cash reserves.