Etsy Files 10-Q for Q2 2024

TL;DR

**ETSY Q2 2024 10-Q FILED: Check financials for the latest performance.**

AI Summary

Etsy Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position. Key financial data points and balance sheet information are presented for the second quarter and the first half of 2024, compared to the same periods in 2023.

Why It Matters

This filing provides investors and analysts with the latest financial results and operational details for Etsy, crucial for understanding the company's current performance and future outlook.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific details within can reveal significant financial health or risks for the company.

Key Numbers

• 2024-06-30 — End of Reporting Period (Covers the second quarter of 2024)
• 2023-12-31 — Previous Year End (For comparison purposes)
• 2024-01-01 to 2024-06-30 — Year-to-Date Period (First half of 2024 financial data)
• 2023-01-01 to 2023-06-30 — Prior Year-to-Date Period (First half of 2023 financial data for comparison)

Key Players & Entities

• ETSY INC (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240801 (date) — Filing date
• 117 ADAMS STREET, BROOKLYN, NY 11201 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share ETSY The Nasdaq Glo

Filing Documents

• etsy-20240630.htm (10-Q) — 1611KB
• ex102q22024.htm (EX-10.2) — 39KB
• ex311q22024.htm (EX-31.1) — 8KB
• ex312q22024.htm (EX-31.2) — 8KB
• ex321q22024.htm (EX-32.1) — 3KB
• ex322q22024.htm (EX-32.2) — 3KB
• etsy-20240630_g1.jpg (GRAPHIC) — 52KB
• etsy-20240630_g2.jpg (GRAPHIC) — 1444KB
• 0001370637-24-000043.txt ( ) — 10454KB
• etsy-20240630.xsd (EX-101.SCH) — 36KB
• etsy-20240630_cal.xml (EX-101.CAL) — 54KB
• etsy-20240630_def.xml (EX-101.DEF) — 166KB
• etsy-20240630_lab.xml (EX-101.LAB) — 515KB
• etsy-20240630_pre.xml (EX-101.PRE) — 366KB
• etsy-20240630_htm.xml (XML) — 919KB

- Financial Information

Part I - Financial Information 6

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 13 Notes to Condensed Consolidated Financial Statements 25

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures

- Other Information

Part II - Other Information 37

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 66

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 66

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 66

Other Information

Item 5. Other Information 67

Exhibits

Item 6. Exhibits 68

Signatures

Signatures Unless the context otherwise requires, we use the terms "Etsy," the "Company," "we," "us," and "our" in this Quarterly Report on Form 10-Q ("Quarterly Report") to refer to Etsy, Inc. and, where appropriate, our consolidated subsidiaries. See Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Operating and Financial Metrics" for the definitions of the following terms used in this Quarterly Report: "active buyer," "active seller," "Adjusted EBITDA," "Adjusted EBITDA margin," "currency-neutral GMS growth," "GMS," "GMS ex-U.S. domestic," "new buyer GMS," and "U.S. domestic GMS." Etsy has used, and intends to continue using, its investor relations website and the Etsy News Blog (blog.etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts. Note Regarding Forward-Looking Statements This Quarterly Report contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our opportunity; the impact of our "Right to Win" and other growth strategies, including marketing and product initiatives, investments, and other levers for growth, on our business and operating results, including future gross merchandi se sales ("GMS") and revenue growth; our ability to attract, engage, and retain buyers and sellers; strategic investments or acquisitions, product and marketing investments, and the potential benefits thereof; our Impact Goals, strategy, and intended progress; the impact that global macroeconomic and geopolitical uncertainty and volatility may have on our business, strategy, operating results, key metrics, financial condition, profitability, and cash flows; and uncertainty r

- Financial Information

Part I - Financial Information

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited). Etsy, Inc. Consolidated Balance Sheets (Unaudited) (In thousands, except per share amounts) As of June 30, 2024 As of December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 759,211 $ 914,323 Short-term investments 240,679 236,118 Accounts receivable, net of expected credit losses of $ 8,495 and $ 10,149 as of June 30, 2024 and December 31, 2023, respectively 10,324 24,734 Prepaid and other current assets 109,311 129,884 Funds receivable and seller accounts 239,481 265,387 Total current assets 1,359,006 1,570,446 Property and equipment, net of accumulated depreciation and amortization of $ 272,371 and $ 244,052 as of June 30, 2024 and December 31, 2023, respectively 238,798 249,794 Goodwill 137,742 138,377 Intangible assets, net of accumulated amortization of $ 143,923 and $ 125,932 as of June 30, 2024 and December 31, 2023, respectively 435,687 457,140 Deferred tax assets 137,756 137,776 Long-term investments 93,528 86,676 Other assets 45,571 45,191 Total assets $ 2,448,088 $ 2,685,400 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 13,070 $ 29,920 Accrued expenses 256,819 353,553 Finance lease obligations—current 6,037 6,079 Funds payable and amounts due to sellers 239,481 265,387 Deferred revenue 15,788 14,635 Other current liabilities 33,290 41,207 Total current liabilities 564,485 710,781 Finance lease obligations—net of current portion 96,587 99,620 Deferred tax liabilities 8,788 13,192 Long-term debt, net 2,285,950 2,283,817 Other liabilities 127,274 121,705 Total liabilities 3,083,084 3,229,115 Commitments and contingencies (Note 9) Stockholders' deficit: Common stock ($ 0.001 par value, 1,400,000 shares authorized as of June 30, 2024 and December 31, 2023; 115,315 and 119,069 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) 115 119 Preferred stock ($ 0.001 par value

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. Additionally, it requires that a public entity (1) disclo

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