Etsy's Q4 Revenue Misses, Stock Performance Updated

Etsy reported a 1.2% year-over-year increase in revenue for Q4 2024, amounting to $852.2 million, but fell short of Wall Street's expectations of $861.8 million, leading to a 7% drop in premarket trading. The company achieved a net income of $129.9 million, or $1.03 per share, exceeding analysts' expectations. Despite challenges, Etsy's stock has risen by 8.2% since the start of the year, outperforming the S&P 500. Gross Merchandise Sales (GMS) decreased by 6.8% to $3.74 billion due to decreased consumer spending on non-essential goods, but Depop, a subsidiary, reported record GMS. Etsy continues to focus on technological advancements and sustainability, aiming to achieve net-zero emissions by 2040, and re-engaged 9.8 million lapsed buyers while gaining 6.9 million new ones, maintaining a strong cash position with $1.2 billion in cash and equivalents.