Etsy, Inc. (NASDAQ:ETSY) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET

Company Participants

Deb Wasser - Vice President, Investor Relations

Josh Silverman - Chief Executive Officer

Rachel Glaser - Chief Financial Officer

Conference Call Participants

Deb Wasser

Hi, everyone, and welcome to Etsy's third Quarter 2023 Earnings Conference Call. I'm Deb Wasser, VP of Investor Relations. And joining me today are Josh Silverman, Chief Executive Officer, Rachel Blazer, Chief Financial Officer, and Jessica Schmidt, Senior Director of Investor Relations.

Today's prepared remarks have been prerecorded. This slide deck has also been posted to our website for your reference. Once we are finished with Josh and Rachel's presentations, we will transition to a live video webcast Q&A session. I'll be reading questions from covering self-side analysts and Jessica will help me get -- try to get to as many as we can.

Forward-looking statements involve risks and uncertainties some of which are described in today's earnings release and our most recent Form 10-Q, and which will be updated in future periodic reports that we file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them.

Also during the call, we'll present both GAAP measures and non-GAAP financial measures, which are reconciled to GAAP financial measures when available in the appendix to today's slide deck posted on our IR website, along with a replay of this call.

With that, I'll turn it over to Josh.

Josh Silverman

Thanks Deb, and good afternoon everyone. Before we begin, the last few weeks of conflict in the Middle East have been devastating for impacted communities and beyond. Etsy has taken actions that can most directly and immediately help our sellers, who live in the impacted region, including covering their existing balances as of October 31st, which represents a contribution of about $1 million, and we're providing additional resources to help sellers manage their shops during this incredibly difficult time.

Turning to our results, Etsy performed in line with expectations for modest to top-line growth and strong profitability continued. Consolidated GMS was $3 billion, up 1.2%, compared to last year. Revenue grew 7% to $636 million, and our adjusted EBITDA margin was again very strong at 28.6%. As you all know, there's been significant pressure on consumer discretionary product spending, as high inflation, elevated interest in mortgage rates, splurges on [Zola] (ph) experiences, and declining savings balances have meant that there's little leftover for many consumers after paying for food, gas, rent, and child care.