Curious about Etsy net worth and its financial journey in 2024? At Ando Money, we break down Etsy’s financial performance, revenue streams, and growth trends.
From marketplace revenues to strategic investments, Etsy’s financial landscape reveals a company focusing on sustainable profitability and innovation.
Let’s explore the details that have contributed to Etsy’s financial strength this year.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Etsy, Inc. |
| Full Name | Etsy, Inc. |
| Website | Etsy.com |
| Industry | E-commerce, Online Marketplace |
| Traded as | NASDAQ: ETSY |
| ISIN | N/A |
| Founded | 2005 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Brooklyn, New York |
| Chief Executive Officer | Josh Silverman |
| Number of Employees | 1,414 |
| Market Cap | $6.05 Billion (Oct 2024) |
| Total Assets | $2.4 Billion (June 2024) |
| Total Equity | N/A |
| Revenue | $647.8 Million (Q2 2024) |
| Net Income | $53 Million (Q2 2024) |
What is the Net Worth or Market Cap Of Etsy in 2024?
As of October 2024, Etsy’s market cap stands at $6.05 billion, making it one of the prominent players in the online marketplace sector.
To put things in perspective, Etsy has a market cap that places it among the top e-commerce companies globally, though not in the league of the richest companies.
Nevertheless, its financial growth showcases its impact and steady development.
Related Competitors/Partners:
For a comprehensive list of top companies by net worth, check out this ranking of the richest companies.
Etsy Revenue and Financial Performance Overview
Revenue Breakdown and Main Sources
Etsy’s consolidated revenue for Q2 2024 reached $647.8 million, marking a 3.0% year-over-year (YoY) increase.
A significant portion of this revenue comes from the marketplace side, totaling $470.4 million, with an increase of 3.8% YoY. Services revenue, another crucial contributor, amounted to $177.4 million, up by 0.9% YoY.
The revenue was primarily driven by payments revenue and transaction fees from Offsite Ads.
Etsy’s consolidated GMS achieved a figure of $2.9 billion, with a take rate (revenue divided by GMS) of 22.0%, indicating that the platform successfully monetizes its sales.
Operating Expenses and Their Impact on Profit Margins
Operating expenses for Q2 2024 were $393.5 million, representing a reduction of 11.1% YoY.
Major cost centers include marketing ($183.1 million), product development ($114.5 million), and general administrative costs ($96 million).
A notable decline in these expenses contributed to a healthier profit margin for Etsy, demonstrating efficient cost management.
Etsy’s gross profit margin improved to $463.7 million, up by 5.3% YoY, signaling efficient cost controls in the face of revenue growth.
Gross Merchandise Sales (GMS) Trends and Their Impact
The consolidated GMS stood at $2.9 billion, with the Etsy marketplace itself contributing $2.5 billion.
The platform saw robust growth from its international buyers, with the U.S. domestic GMS making up 52% and non-domestic accounting for 48% of the total.
Despite a slight drop YoY, gifting proved to be a strong revenue driver with a 4.1% YoY increase in GMS.
Role of Active Buyers and Sellers in Financial Health
Active buyers on the platform reached 96.6 million, showing an increase of 0.4% YoY. Efforts to retain and reactivate buyers resulted in 6.4 million reactivated buyers and 5.6 million new buyers during Q2 2024.
Additionally, 8.8 million active sellers contributed to the marketplace’s vibrancy, driving GMS and revenue.
Gifting Segment and Its Financial Contribution
The gifting segment remains a standout contributor to Etsy’s revenue growth.
With an estimated 27% of GMS being linked to gifting occasions, the introduction of “Gift Mode” and other gifting-centric initiatives bolstered the platform’s performance.
These features not only drove additional traffic but also enhanced the shopping experience, contributing to increased buyer frequency and retention.
Strategic Investments and Their Effect on Revenue
In Q2 2024, Etsy focused on strategic growth areas to drive both revenue and profitability.
These include launching loyalty programs like “Etsy Insider,” enhancing search quality to help buyers find unique items easily, and improving shopping reliability.
Investments in marketing, tech, and customer support are carefully balanced with cost controls to sustain healthy profit margins and achieve a reported Adjusted EBITDA margin of 27.7%.
Cash Flow Management and Investment Activities
As of June 30, 2024, Etsy reported $1.1 billion in cash and investments, ensuring a solid liquidity position.
Operating activities generated $220 million in cash over the first half of 2024, while investments in property, equipment, and software development were strategic and aligned with long-term growth.
Additionally, a stock repurchase program worth $150 million supported the company’s financial position and shareholder value.
FAQs About Etsy
What are Etsy’s Main Revenue Sources?
Etsy’s revenue primarily comes from marketplace transactions, service fees, and payments from Offsite Ads. Marketplace revenue comprises a significant portion of its total revenue.
How Does Etsy Contribute to Seller Growth?
Etsy provides tools and services to help sellers succeed. From marketing resources to customer support, the platform ensures sellers can reach their target audience effectively.
How Are Etsy’s Operating Margins Managed?
Operating margins are managed through cost control in areas such as marketing, product development, and general administration. The company focuses on balancing growth investments with profitability.
What Was Etsy’s Net Income in Q2 2024?
It reported a net income of $53 million for Q2 2024, showcasing profitability even amidst market challenges and growth investments.
How Did Etsy’s Gross Merchandise Sales Perform?
GMS for Q2 2024 was $2.9 billion, with contributions from both domestic and international markets. The Etsy marketplace accounted for $2.5 billion of the total.
Conclusion
Etsy’s financial performance in 2024 reflects growth, strategic investments, and efficient cost management.
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