Etsy ETSY shares jumped 7.19% to close at $51.44 on Thursday following the announcement of third-quarter 2024 results.

Revenues advanced 4.1% year over year to $662.4 million. The figure beat the Zacks Consensus Estimate by 1.31%. Top-line growth was driven by accelerating Marketplace revenues.

However, third-quarter 2024 earnings of 45 cents per share missed the Zacks Consensus Estimate by 16.67%. The bottom-line figure reflects a year-over-year decrease of 29.7%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Etsy announced a stock repurchase program worth $1 billion. In the third-quarter 2024, Etsy repurchased an aggregate of approximately $156 million, or 2.7 million shares, of its common stock.

ETSY shares have underperformed the Zacks Retail and Wholesale sector year to date. While ETSY shares have lost 40.8%, the broader sector has returned 19.4%.

Etsy, Inc. Price, Consensus and EPS Surprise

 

Etsy, Inc. price-consensus-eps-surprise-chart | Etsy, Inc. Quote

ETSY’s Top Line Grows Y/Y

Marketplace revenues were $476.1 million (71.9% of the total revenues), up 3.3% from the year-ago quarter’s level. The growth was driven by payment fee revenues. A new seller setup fee and offsite ad fees also contributed to marketplace revenue expansion.

ETSY acquired 5.3 million new buyers, which was a major positive. The total number of active buyers on Etsy’s marketplace stood at 91.2 million, which increased 0.4% year over year.

Services revenues were $186.3 million (28.1% of the total revenues), up 6.2% on a year-over-year basis.

ETSY’s Active User Base Increases Y/Y

Etsy’s active buyer base increased 0.7% from the prior-year quarter’s figure to 96.7 million, which missed the consensus mark of 97.2 million.

The active seller base stood at 8.5 million, down 3.2% year over year. The figure missed the consensus mark of 9.7 million.

ETSY witnessed solid momentum in buyer reactivation. Reactivated buyers were 6.4 million, up 5.6% year over year.

Gross merchandise sales (GMS) of $2.92 billion were down 4.1% on a reported basis and 4.4% on a currency-neutral basis from the prior-year quarter. The reported figure missed the Zacks Consensus Estimate of $2.97 billion.

The Etsy marketplace’s Gross Merchandise Sales (GMS) was $2.5 billion, down 6% on a reported basis from the year-ago quarter’s figure and 6.3% on a currency-neutral basis.

ETSY’s Operating Expenses Rise Y/Y

In the third quarter of 2024, total operating expenses were $389.95 million, up 8.6% from the prior-year quarter. As a percentage of revenues, the figure expanded to 58.9% from 56.4% in the year-ago quarter.