Etsy (NASDAQ: ETSY) reported Q4 EPS of $0.62, $0.15 worse than the analyst estimate of $0.77. Revenue for the quarter came in at $842.3 million versus the consensus estimate of $827.67 million.

Consolidated Financial Guidance and Outlook

First quarter 2024 Guidance

• GMS for the first quarter of 2024 is currently estimated to decline in the low-single-digit range on a year-over-year basis. This guidance reflects our slow start to the quarter, and our current expectation that GMS for the core Etsy marketplace improves as we move through the rest of the quarter as a result of our planned product and marketing investments. However, if our trends fail to improve as we currently expect, this could become a mid-single-digit decline.
• We estimate Q1 2024 take rate to be between 21-21.5%. This can be used to estimate revenue range for the quarter.
• Adjusted EBITDA margin is currently estimated to be ~26%.
• FY 2024 Outlook
• We currently expect the first quarter to be our low point in year-over-year growth in GMS and revenue as we begin to see the expected benefits of our Etsy marketplace product and marketing investments kicking in starting in the second quarter.
• We expect revenue growth to outpace GMS growth; full year take-rate in line or ahead of the first quarter.
• We expect to maintain very healthy margins, with consolidated Adjusted EBITDA margins for 2024 at least similar to 2023.
• Please note that our guidance assumes currency exchange rates remain unchanged at current levels.
• With respect to our expectations under "Financial Guidance and Outlook" above, reconciliation of Adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from Adjusted EBITDA; in particular, stock-based compensation expense, foreign exchange loss, acquisition, divestiture, and other corporate structure-related expenses, and other non-recurring expenses can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted.

For earnings history and earnings-related data on Etsy (ETSY) click here.