Etsy posts marginal revenue growth in Q1

Online marketplace Etsy reported consolidated revenue was 646 million dollars, up 0.8 percent versus the first quarter of 2023 driven by growth in payments revenue, transaction fee revenue from offsite ads and Etsy ads.

Consolidated GMS was 3 billion dollars, down 3.7 percent and down 4.1 percent on a currency-neutral basis. Etsy marketplace GMS was 2.6 billion dollars, down 5.3 percent and down 5.6 percent on a currency-neutral basis.

"Our first quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth," said Josh Silverman, Etsy, Inc. chief executive officer.

In the first quarter, Etsy's site-wide 'Gifting' GMS grew low single digits on a year-over-year basis, outperforming the Etsy marketplace's overall growth and select US online gifting 'pure play' peers.

Active buyers increased 1.9 percent to 91.6 million, largely flat on a sequential basis. United States active buyers grew slightly and the company continued to see growth in international active buyers.

Consolidated net income was 63 million dollars, down 11.5 million dollars, consolidated net income margin was approximately 9.8 percent and diluted net income per share was 48 cents.

Consolidated non-GAAP adjusted EBITDA was 167.9 million dollars, with consolidated non-GAAP adjusted EBITDA margin of approximately 26 percent.