Etsy’s (ETSY) shares dropped over 5% in after-hours trading Wednesday after the company’s FQ4 earnings fell short of analysts’ expectations.
The e-commerce company posted earnings per share (EPS) of $0.62, missing the consensus estimate of $0.77. Revenue was reported at $842.3 million, surpassing the anticipated $827.67 million.
Looking ahead to the first quarter of 2024, Etsy (NASDAQ:ETSY) forecasts a slight year-over-year decrease in Gross Merchandise Sales (GMS), expected to be in the low single digits.
Moreover, the take rate for the first quarter is projected to be between 21% and 21.5%, while the adjusted EBITDA margin is expected to be around 26%.
For the entire year, Etsy expects revenue growth to exceed GMS growth, with the full-year take rate expected to be comparable to or exceed that of the first quarter.
"Etsy delivered over $13 billion in consolidated GMS and our highest-ever annual revenue," said Josh Silverman, Etsy's Chief Executive Officer."
"We've built an ambitious plan to invest in a portfolio of growth initiatives in 2024, starting with efforts to make Etsy an indispensable partner for Gifting," he added.