Etsy Says Q1 2024 GMS Estimated To Decline In Low-Single-Digit Range On YoY Basis
Portfolio Pulse from Benzinga Newsdesk
Etsy forecasts a decline in Q1 2024 GMS in the low-single-digit range year-over-year, attributing it to a slow start. The company expects improvement through the quarter with planned product and marketing investments. A failure to improve trends could lead to a mid-single-digit decline. Etsy estimates a Q1 2024 take rate of 21-21.5% and an adjusted EBITDA margin of ~26%.
February 21, 2024 | 9:13 pm
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Etsy anticipates a low-single-digit decline in Q1 2024 GMS year-over-year, with potential for a mid-single-digit decline if trends don't improve. The company plans product and marketing investments to counteract the slow start. Q1 take rate is expected to be between 21-21.5%, with an adjusted EBITDA margin of ~26%.
The forecasted decline in GMS (Gross Merchandise Sales) for Q1 2024 suggests a negative short-term impact on Etsy's stock price. The company's acknowledgment of a slow start to the quarter and the conditional statement regarding a potential mid-single-digit decline if improvements are not realized add uncertainty. However, the planned investments in product and marketing could mitigate some negative perceptions, depending on investor confidence in Etsy's strategy. The estimated take rate and adjusted EBITDA margin provide some positive outlook but may not fully offset concerns about the GMS decline.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100