Technology
Etsy, Inc. Reports Second Quarter 2024 Results
Published
2 months agoon
By
Consolidated results came in at the high end or ahead of guidance for key performance metrics
BROOKLYN, N.Y., July 31, 2024 /PRNewswire/ — Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its second quarter ended June 30, 2024.
“We are pleased that second quarter consolidated results included sequential acceleration of Etsy marketplace year-over-year GMS, higher consolidated revenue both year-over-year and sequentially, and strong adjusted EBITDA profitability,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “Gifting is proving to be a winning theme – driving growth as a key source of differentiation for Etsy. We are making excellent progress with other bold moves and investments meant to raise consideration among buyers – to help us stand apart more than ever. While this is a challenging environment for our type of goods, we are focused on reigniting Etsy marketplace growth and gaining market share.”
Second quarter 2024 performance highlights include:
Consolidated GMS was $2.9 billion, down 2.1% year-over-year and down 1.9% on a currency-neutral basis. Consolidated GMS included a small headwind from the divestiture of Elo7.Etsy marketplace GMS was $2.5 billion, down 3.2% year-over-year and down 2.9% on a currency-neutral basis.Gifting GMS1 was up 4.1% year-over-year, representing approximately 27% of GMS, significantly outperforming select online gifting focused peers.2Active buyers increased 1.0% year-over-year to 91.5 million, largely flat on a sequential basis, and we continued to see year-over-year growth in international active buyers. We reactivated 6.4 million buyers, up 8.5% from the prior year period, and acquired 5.6 million new buyers. Our retention of active buyers remains above pre-pandemic levels on a trailing twelve month basis.While GMS per active buyer on a trailing twelve month basis for the Etsy marketplace declined 3.2% year-over-year to $124 in the second quarter, trends in this metric continued to stabilize on a sequential basis. Our number of habitual buyers was 6.9 million, down 3.0% year-over-year, although our retention rate of habitual buyers was slightly better on a year-over-year basis.U.S. domestic GMS represented 52% of overall GMS and GMS ex-U.S. domestic was 48% of overall GMS.Consolidated revenue was $647.8 million, up 3.0% versus the second quarter of 2023, with a take rate (i.e., consolidated revenue divided by consolidated GMS) of 22.0%. Our positive revenue growth was primarily driven by growth in Marketplace revenue, primarily driven by payments revenue and transaction fee revenue from Offsite Ads.Consolidated net income was $53.0 million, down $8.9 million year-over-year, reflecting a $7.2 million retroactive non-income tax expense. Consolidated net income margin (i.e., net income divided by revenue) was approximately 8.2% and diluted net income per share was $0.41.Consolidated non-GAAP Adjusted EBITDA was $179.4 million, with consolidated non-GAAP Adjusted EBITDA margin (i.e., consolidated non-GAAP Adjusted EBITDA divided by consolidated revenue) of approximately 27.7%.Etsy ended the second quarter with $1.1 billion in cash and cash equivalents and short- and long-term investments. Under Etsy’s stock repurchase program, during the second quarter of 2024 Etsy repurchased an aggregate of approximately $150 million, or 2.4 million shares, of its common stock. These shares were purchased pursuant to a 10b5-1 plan.
“We are investing in strategic growth areas including Gifting, highlighting the best of Etsy through Quality initiatives, launching a new Loyalty Program, expanding our App, and more, while also carefully managing expenses to deliver very healthy profit,” said Rachel Glaser, Chief Financial Officer. “In fact, second quarter adjusted EBITDA was about 28%, ahead of our guidance and up 130 bps from last year, as we gained leverage year-over-year on employee costs and cost of revenue, which was partially offset by higher level of performance marketing investments to help fuel buyer growth and frequency. The Etsy marketplace’s record level of active buyers has held up quite well, and we added approximately 12 million new and reactivated buyers during the quarter.”
______________________________________
1 Etsy Gifting GMS: Estimate based upon word ‘gift’ in the listing title, shipped with a gift message, or other signal the item was purchased as a gift.
2 Source: Consumer Edge spend data from sampling of credit card transactions from online ‘gifting’ peers Zola, Zazzle, Minted, Uncommon Goods, Hallmark, and Mark and Graham.
Second Quarter 2024 Financial Summary
(in thousands, except percentages; unaudited)
The financial results of Elo7 have been included in our consolidated financial results for the prior year periods, as Elo7 was sold on August 10, 2023. The unaudited GAAP and non-GAAP financial measures and key operating metrics we use are:
Three Months Ended
June 30,
% (Decline)
Growth
Y/Y
Six Months Ended
June 30,
% (Decline)
Growth
Y/Y
2024
2023
2024
2023
GMS (1)
$ 2,949,254
$ 3,012,504
(2.1) %
$ 5,935,754
$ 6,113,862
(2.9) %
Revenue
$ 647,806
$ 628,876
3.0 %
$ 1,293,760
$ 1,269,753
1.9 %
Marketplace revenue
$ 470,377
$ 452,957
3.8 %
$ 937,359
$ 920,473
1.8 %
Services revenue
$ 177,429
$ 175,919
0.9 %
$ 356,401
$ 349,280
2.0 %
Gross profit
$ 463,716
$ 440,238
5.3 %
$ 922,537
$ 885,662
4.2 %
Operating expenses
$ 393,547
$ 442,610
(11.1) %
$ 784,278
$ 809,835
(3.2) %
Net income
$ 53,005
$ 61,915
(14.4) %
$ 116,009
$ 136,452
(15.0) %
Net income margin
8.2 %
9.8 %
(160) bps
9.0 %
10.7 %
(170) bps
Adjusted EBITDA (Non-GAAP)
$ 179,375
$ 166,235
7.9 %
$ 347,310
$ 336,578
3.2 %
Adjusted EBITDA margin (Non-GAAP)
27.7 %
26.4 %
130 bps
26.8 %
26.5 %
30 bps
Active sellers (2)
8,801
8,312
5.9 %
8,801
8,312
5.9 %
Active buyers (2)
96,610
96,250
0.4 %
96,610
96,250
0.4 %
Percent GMS ex-U.S. domestic (1)
45 %
45 %
— bps
45 %
45 %
— bps
(1)
Consolidated GMS for the three and six months ended June 30, 2024 includes Etsy marketplace GMS of $2.5 billion and $5.1 billion, respectively. Percent GMS ex-U.S. domestic for the Etsy marketplace for both the three and six months ended June 30, 2024 was 48%.
(2)
Consolidated active sellers and active buyers includes Etsy marketplace active sellers and active buyers of 6.6 million and 91.5 million, respectively, as of June 30, 2024.
Second Quarter 2024 Operating Highlights
Etsy
Our “Right to Win” is centered on key elements that we believe make the Etsy marketplace a better place to shop and sell and, which, in turn, will bring more buyers, lead to increased frequency and size of purchases, and build trust in the Etsy marketplace. In 2024, we are focused on building buyer consideration by making it easier to ‘find the best stuff’ on Etsy, driving association that Etsy sellers offer great value, and making shopping on Etsy more reliable and dependable. The below highlights some of our key initiatives:
Product Highlights:
In order to drive buyer Consideration, we are making progress in our efforts to position Etsy as an indispensable partner for Gifting, with broad based investments positively impacting our performance:
We reported single-digit year-over-year growth in U.S. GMS for Mother’s Day and Father’s Day, and double-digit year-over-year growth for graduations, another important second quarter gifting occasion.U.S. buyer survey data we are tracking for Gifting indicates we are making solid progress. For example, we saw a significant year-over-year increase in prompted consideration of Etsy as a destination for gifts. We are also tracking an increase in consumer perception that Etsy makes it easy to find a great gift, a survey question we introduced more recently, in connection with the launch of Gift Mode.Gift Mode is now available everywhere Etsy operates globally, and in ten languages.Product enhancements for the quarter included the addition of Lists and Reminders, Occasion Pages (ex: anniversary, birthday, etc.), and Gift Teaser Video Messages.We built integration for third party sales of Etsy Gift Cards aligned with our overall Gifting strategy.
We launched a “Made for You” microsite to increase consideration and help buyers get the most out of shopping on Etsy. It features our latest product improvements, including Gift Mode, the Deals Tab, the Etsy’s Picks badge, and Etsy Purchase Protection. The microsite was launched globally in June, is available in 11 languages, and has already attracted hundreds of thousands of users.
To help buyers ‘find the best stuff on Etsy,’ we invested in the following Quality initiatives:
As announced on July 9th, we made a series of updates across our seller policies and the shopping experience in order to shine a brighter spotlight on our sellers’ work, be even clearer about Etsy’s rules, and reinforce what Etsy stands for and why we are different and special. We introduced new “Creativity Standards,” which categorize what’s allowed on Etsy based on a sellers’ role in the creative process. We’re also more clearly showing buyers how sellers are involved in their items by adding clearer descriptors to listing pages indicating whether they are made, designed, handpicked, or sourced by a seller. Along with these important changes to our marketplace, we launched a new homepage as well as full funnel marketing campaigns in the United States and United Kingdom, which feature real Etsy sellers and highlight our unique positioning.
We expanded the diversity of merchandise we are showing buyers, with a goal to reduce the cognitive load experienced when search results deliver too many similar items. Recent search advances expanded the diversity of both sellers and items that we are showing per query. For example, our work resulted in an approximately 50% decline in the percent of searches where a high percentage of listings seen on page one are from a single seller; and an over 70% reduction in the number of searches that have two or more listings that may appear identical.
Aligned with our efforts to make shopping on Etsy more reliable and dependable, and also to drive international growth, we recently secured a new preferred shipping partnership with a third party to simplify cross-border logistics for Turkish sellers. We continued to expand Etsy Payments globally, with about 98% of our GMS now processed through our platform.
We worked to continue to build trust in our marketplace with a roll out of our new seller set-up fee in additional regions. This fee, meant to strengthen our new shop onboarding process, and in combination with added trust and safety enforcement – resulted in a significant decline in fraudulent onboarding, while continuing to provide ample access for creative entrepreneurs to start businesses on Etsy.
Marketing Highlights:
We further developed plans to launch our new Etsy Insider Loyalty program, currently scheduled to be introduced in invitation-only beta form to targeted occasional Etsy U.S. buyers in mid-September. Etsy Insider will be buyer-fee based, offering free U.S. domestic shipping on millions of items, item discounts, first access merchandise and other benefits, with a goal to drive frequency and loyalty over time.
We now manage all of Etsy’s paid search campaigns in-house, enabling us to reallocate the significant external costs of managing these campaigns directly into the campaigns themselves.
To support our U.S. sellers, we launched a targeted marketing campaign to promote the availability of a seller financing program offered via a third party partner. We’ve observed strong initial engagement from the campaign signaling interest and need for additional capital among our seller community.
Etsy’s Creator Collective program, which incentivizes creators and influencers to drive purchases, social conversation, and unique content for Etsy by providing affiliate links to any page on Etsy.com and boosting top posts, has reached over 260,000 participants.
Reverb
Reverb continues to highlight affordable music gear across its experience:
Buyers can now compare prices for used and discounted items to the typical price for an equivalent brand new item. Reverb’s foundational search ranking model was also optimized to highlight the best deals on the platform, driving more than 2% increases in conversion rate in Reverb’s native apps.
Reverb launched its new Reverb Outlet in June, which showcases high-quality new and like-new gear sold at discounts of 20% or more from authorized retailers and brands. The launch was promoted through an integrated marketing campaign spanning earned, owned, and paid channels.
Reverb invested in enhanced seller tooling, launching quick price edits internationally, which drove a 10% lift in price drops, and rolled out a new platform to help sellers better manage their listings.
Depop
Depop removed selling fees for sellers based in the U.S. effective July 15, and introduced a small buyer marketplace fee, a change designed to empower sellers to earn more from their wardrobes, offer improved value and choice for buyers, and make it easier for people to take their first steps into secondhand. The evolved fee structure follows similar changes made in the U.K. market earlier this year.
Depop also continues to highlight good value on the marketplace, making it easier and more intuitive for buyers to send reasonably priced offers to sellers and vice versa.
Depop focused on positioning itself as a dynamic two-sided marketplace, with stronger emphasis on seller messaging, while increasing its in-real-life presence among key target demographics in the U.S.
Consolidated Q3 24 Financial Guidance
Q3 24 Guidance
GMS
We currently estimate that Consolidated GMS will
decline in the low single digit range on a year-over-
year basis.
Take Rate
Similar to Q2 24
Adjusted EBITDA Margin
~27%
Regarding our full-year 2024 outlook, we reiterate that consolidated adjusted EBITDA margin should come in at least the same as the 2023 result.
Please note that our guidance assumes currency exchange rates remain unchanged at current levels.
With respect to our expectations under “Consolidated Q3 24 Financial Guidance ” and outlook for the remainder of 2024 above, reconciliation of Adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from Adjusted EBITDA; in particular, stock-based compensation expense, foreign exchange (gain) loss, interest and other non-operating income, net, provision (benefit) for income taxes, acquisition, divestiture, and corporate structure-related expenses, and other non-recurring expenses.
Webcast and Conference Call Information
Etsy will host a video webcast conference call to discuss these results at 5:00 p.m. Eastern Time today, which will be live-streamed via our Investor Relations website (investors.etsy.com) under the Events section. A copy of the earnings call presentation will also be posted to our website.
A replay of the video webcast will be available through the same link following the conference call starting at 8:00 p.m. Eastern Time this evening, for at least three months thereafter.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to “Keep Commerce Human,” and we’re committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc.’s “House of Brands” portfolio also includes fashion resale marketplace Depop, and Reverb, the largest online marketplace dedicated to music gear. Each Etsy, Inc. marketplace operates independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
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.
Investor Relations Contact:
Deb Wasser, Vice President, Investor Relations and ESG Engagement
ir@etsy.com
Media Relations Contact:
Sarah Marx, Director, Corporate Communications
press@etsy.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains or references forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial guidance for the third quarter of 2024 and outlook for the full year of 2024 and underlying assumptions; our ability to reignite Etsy marketplace growth and gain market share; our ability to invest in strategic growth while delivering on profitability; our ability to drive buyer engagement through our new Quality initiatives; and the impact of our “Right to Win” strategy and our product development and marketing efforts, including the timing and impact of the launch of Etsy Insider. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “aim,” “anticipate,” “believe,” “could,” “enable,” “estimate,” “expect,” “goal,” “intend,” “may,” “outlook,” “plan,” “potential,” “target,” “will,” or similar expressions and derivative forms and/or the negatives of those words.
Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include: (1) the level of demand for our services or products sold in our marketplaces; (2) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (3) the fluctuation of our quarterly operating results; (4) our failure to meet our publicly announced guidance or other expectations; (5) any real or perceived inaccuracies in our operational metrics; (6) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber-related events; (7) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (8) macroeconomic events that are outside of our control; (9) operational and compliance risks related to our payments systems; (10) our ability to recruit and retain employees; (11) our ability to compete effectively; (12) enforcement of our marketplace policies; (13) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (14) risks related to our environmental, social, and governance activities and disclosures; (15) our efforts to expand our operations outside of the United States; (16) acquisitions that may prove unsuccessful or divert management attention; (17) failure to deal effectively with fraud; (18) compliance with evolving regulations, including in the area of privacy and data protection; and (19) litigation and regulatory matters, including intellectual property claims. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.
Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
Etsy, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
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
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
238,798
249,794
Goodwill
137,742
138,377
Intangible assets, net
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
Total stockholders’ deficit
(634,996)
(543,715)
Total liabilities and stockholders’ deficit
$ 2,448,088
$ 2,685,400
Etsy, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts; unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
$ 647,806
$ 628,876
$ 1,293,760
$ 1,269,753
Cost of revenue
184,090
188,638
371,223
384,091
Gross profit
463,716
440,238
922,537
885,662
Operating expenses:
Marketing
183,063
165,870
374,874
337,184
Product development
114,493
121,988
224,339
237,912
General and administrative
95,991
86,661
185,065
166,648
Asset impairment charges
—
68,091
—
68,091
Total operating expenses
393,547
442,610
784,278
809,835
Income (loss) from operations
70,169
(2,372)
138,259
75,827
Other income, net
8,808
7,786
20,373
10,858
Income before income taxes
78,977
5,414
158,632
86,685
(Provision) benefit for income taxes
(25,972)
56,501
(42,623)
49,767
Net income
$ 53,005
$ 61,915
$ 116,009
$ 136,452
Net income per share attributable to common stockholders:
Basic
$ 0.46
$ 0.50
$ 0.99
$ 1.10
Diluted
$ 0.41
$ 0.45
$ 0.89
$ 0.98
Weighted-average common shares outstanding:
Basic
116,432
123,463
117,445
123,971
Diluted
133,118
141,011
134,263
142,011
Etsy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands; unaudited)
Six Months Ended
June 30,
2024
2023
Cash flows from operating activities
Net income
$ 116,009
$ 136,452
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense
145,400
145,964
Depreciation and amortization expense
53,933
46,118
Provision for expected credit losses
7,321
10,258
Deferred benefit for income taxes
(4,291)
(67,568)
Asset impairment charges
—
68,091
Other non-cash (income) expense, net
(11,556)
894
Changes in operating assets and liabilities
(86,722)
(148,307)
Net cash provided by operating activities
220,094
191,902
Cash flows from investing activities
Purchases of property and equipment
(5,908)
(3,852)
Development of internal-use software
(14,093)
(12,603)
Purchases of investments
(192,863)
(197,565)
Sales and maturities of investments
185,120
171,307
Net cash used in investing activities
(27,744)
(42,713)
Cash flows from financing activities
Payment of tax obligations on vested equity awards
(33,007)
(49,256)
Repurchase of stock
(308,726)
(187,037)
Proceeds from exercise of stock options
2,735
5,755
Payment of debt issuance costs
—
(2,186)
Settlement of convertible senior notes
—
(90)
Payments on finance lease obligations
(3,086)
(3,150)
Other financing, net
3,821
(278)
Net cash used in financing activities
(338,263)
(236,242)
Effect of exchange rate changes on cash
(9,199)
7,287
Net decrease in cash, cash equivalents, and restricted cash
(155,112)
(79,766)
Cash, cash equivalents, and restricted cash at beginning of period
914,323
926,619
Cash, cash equivalents, and restricted cash at end of period
$ 759,211
$ 846,853
Currency-Neutral GMS Growth
We calculate currency-neutral GMS growth by translating current period GMS for goods sold that were listed in non-U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates.
As reported and currency-neutral GMS decline for the periods presented below are as follows:
Quarter-to-Date Period Ended
Year-to-Date Period Ended
As Reported
Currency-
Neutral
FX Impact
As Reported
Currency-
Neutral
FX Impact
June 30, 2024
(2.1) %
(1.9) %
(0.2) %
(2.9) %
(3.0) %
0.1 %
June 30, 2023
(0.6) %
(0.4) %
(0.2) %
(2.7) %
(1.5) %
(1.2) %
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
In this press release, we provide Adjusted EBITDA, a non-GAAP financial measure that represents our net income adjusted to exclude: interest and other non-operating income, net; provision (benefit) for income taxes; depreciation and amortization; stock-based compensation expense; foreign exchange (gain) loss; acquisition, divestiture, and corporate structure-related expenses; asset impairment charges; restructuring and other exit (income) costs; and retroactive non-income tax expense. We also provide Adjusted EBITDA margin, a non-GAAP financial measure that presents Adjusted EBITDA divided by revenue. Below is a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
We have included Adjusted EBITDA and Adjusted EBITDA margin because they are key measures used by our management and Board of Directors to evaluate our operating performance and trends, allocate internal resources, prepare and approve our annual budget, develop short- and long-term operating plans, determine incentive compensation, and assess the health of our business. As our Adjusted EBITDA increases, we are able to invest more in our platforms.
We believe that Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business as they remove the impact of certain non-cash items and certain variable charges.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
Adjusted EBITDA does not reflect interest and other non-operating income, net;
Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
Adjusted EBITDA does not consider the impact of stock-based compensation expense;
Adjusted EBITDA does not consider the impact of foreign exchange (gain) loss;
Adjusted EBITDA does not reflect acquisition, divestiture, and corporate structure-related expenses;
Adjusted EBITDA does not consider the impact of asset impairment charges;
Adjusted EBITDA does not reflect restructuring and other exit (income) costs;
Adjusted EBITDA does not reflect retroactive non-income tax expense; and
other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including net income, revenue, and our other GAAP results.
Reconciliation of Net Income to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin
(in thousands, except percentages; unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Net income
$ 53,005
$ 61,915
$ 116,009
$ 136,452
Excluding:
Interest and other non-operating income, net
(3,947)
(5,934)
(9,257)
(11,623)
Provision (benefit) for income taxes
25,972
(56,501)
42,623
(49,767)
Depreciation and amortization
27,087
22,946
53,933
46,118
Stock-based compensation expense (1)
74,717
77,281
145,400
145,964
Foreign exchange (gain) loss
(4,861)
(1,852)
(11,116)
765
Acquisition, divestiture, and corporate structure-related expenses
234
289
2,132
578
Asset impairment charges
—
68,091
—
68,091
Restructuring and other exit (income) costs
(76)
—
342
—
Retroactive non-income tax expense (2)
7,244
—
7,244
—
Adjusted EBITDA
$ 179,375
$ 166,235
$ 347,310
$ 336,578
Divided by:
Revenue
$ 647,806
$ 628,876
$ 1,293,760
$ 1,269,753
Adjusted EBITDA margin
27.7 %
26.4 %
26.8 %
26.5 %
(1)
Stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the periods presented below is as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Cost of revenue
$ 8,787
$ 8,171
$ 16,491
$ 15,417
Marketing
5,882
6,107
12,319
11,369
Product development
38,441
38,220
72,505
74,929
General and administrative
21,607
24,783
44,085
44,249
Stock-based compensation expense
$ 74,717
$ 77,281
$ 145,400
$ 145,964
(2)
Retroactive non-income tax expense related to the digital services tax legislation in Canada, which was enacted on June 28, 2024 retroactive to January 1, 2022.
View original content:https://www.prnewswire.com/news-releases/etsy-inc-reports-second-quarter-2024-results-302211378.html
SOURCE Etsy, Inc.
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Technology
LYT ANNOUNCES DEPLOYMENT OF TRANSIT PRIORITY SOLUTIONS BY PARTNERING WITH ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA)
Published
22 mins agoon
September 19, 2024By
LYT.Transit Will Move Bus Transit Vehicles Through Congested Harbour Blvd. Corridor Safer and Faster
SANTA CLARA, Calif., Sept. 19, 2024 /PRNewswire/ — LYT, a leader in NextGen intelligent connected traffic technology solutions, announced today it has signed a contract with the Orange County Transportation Authority (OCTA) and the city of Fullerton for a one-year pilot program and the implementation of LYT’s leading NextGen transit priority solution (TSP), LYT.transit.
Serving as the primary contractor for TSP under the Master Service Agreement with Arcadis, a leading global design and consultancy organization for natural and built assets, LYT.transit will help solve congestion issues for traffic signals across the busy corridor of Harbour Blvd. The Orange County TSP deployment extends LYT’s rapid expansion throughout the west coast.
LYT’s leading transit signal priority solution, LYT.transit, moves bus transit vehicles through congested intersections faster, safer, and more intelligently. Harnessing the power of a single-edge device installed in the Traffic Management Center (TMC), bus transit vehicles speak directly to networked traffic signals through LYT’s open architecture cloud platform. This results in a consistent and reliable green light for every bus transit vehicle in the network.
Cities are realizing the distinct benefits of this technology due to LYT’s machine learning models and artificial intelligence technology that knows when to prioritize and activate a traffic signal. LYT’s system uses automotive data in an actionable way as it takes a broader traffic pattern ecosystem into account to have an impact on other surrounding signals, not just the one signal that traffic is heading toward.
“As the Southern California region continues to thrive, it is essential to implement advanced traffic signal prioritization technology to improve the daily commutes of Orange County residents,” said Tim Menard, CEO and Founder of LYT. “Our cutting-edge AI-powered technology ensures smoother traffic flow, reduces congestion, and enhances safety on today’s roads. By prioritizing public transportation and optimizing traffic signals, we are committed to creating a more efficient and sustainable transportation network that benefits all residents and businesses throughout Orange County.”
Gabriel Murillo, ITS and Connected Mobility Market Leader at Arcadis, said: “We are pleased to partner with LYT on LYT.transit, to help ease the impacts of traffic congestion for buses in Orange County. By harnessing the power of advanced AI and machine learning, LYT.transit is set to elevate transit efficiency, enhance safety, and contribute to a more sustainable transportation network for the residents and businesses of Orange County.”
About LYT
LYT is the leading provider of smart cities NextGen intelligent connected traffic technologies that orchestrates today’s Intelligent Transportation Systems. LYT’s AI-powered, open architecture, machine learning technology enables a suite of transit signal priority and emergency vehicle preemption solutions that utilize pre-existing vehicle tracking sensors and city communication networks to dynamically adjust the phase and timing of traffic signals to provide sufficient green clearance time while minimally impacting cross traffic. LYT is headquartered in Silicon Valley and serves municipalities across the US and Canada. Learn more at LYT.ai.
ABOUT ARCADIS
Arcadis is the world’s leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets. We are more than 36,000 architects, data analysts, designers, engineers, project planners, water management and sustainability experts, all driven by our passion for improving quality of life. As part of our commitment to accelerating a planet positive future, we work with our clients to make sustainable project choices, combining digital and human innovation, and embracing future-focused skills across the environment, energy and water, buildings, transport, and infrastructure sectors. We operate in over 30 countries, and in 2023 reported €5.0 billion in gross revenues. www.arcadis.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/lyt-announces-deployment-of-transit-priority-solutions-by-partnering-with-orange-county-transportation-authority-octa-302252300.html
SOURCE LYT
Technology
Safire Group Raises $8 Million in New Financing to Deliver Lithium-ion Battery Safety Technology to Government, Automotive Markets
Published
22 mins agoon
September 19, 2024By
Canaan Partners Leads Round to Establish SAFIRE™ Technology as New Benchmark for Battery Safety
KNOXVILLE, Tenn., Sept. 20, 2024 /PRNewswire/ — Safire Technology Group, Inc. (“Safire Group”), today announced $8 million in new financing led by Canaan Partners, with participation from Correlation Ventures, Higher Life Ventures, Ajinomoto Co., Inc., Automotive Ventures, Outpost Ventures, Potomac Angel Capital, and MaC Venture Capital. This Pre-Series A priced round of financing brings total funding to $11 million and fuels continued development of the company’s Safe, Impact-Resistant Electrolyte (SAFIRE™) technology to transform the safety benchmarks of Lithium-ion (Li-ion) batteries across government and automotive industries. Canaan’s Hrach Simonian will join co-founders John Lee and Mike Grubbs on the board of directors.
“We are grateful to have a highly regarded, deeply experienced, and values-aligned investor in Canaan, and we are eager to continue building Safire Group together,” said Mike Grubbs.
“Safire Group is revolutionizing Li-ion battery technology with a focus on safety. Their innovative solutions are addressing the critical issue of battery volatility and setting new standards in the industry,” said Hrach Simonian, General Partner of Canaan Partners. “Safety should be intrinsic to battery design, not an afterthought. Safire Group’s commitment to redefining how these batteries are used in mobility and government applications promises to unlock unprecedented opportunities on a global scale.”
SAFIRE is the world’s only patented and proprietary drop-in additive for Li-ion batteries that prevents fires through an instantaneous liquid to solid transformation upon kinetic impact, such as an electric vehicle (EV) crash or ballistic event. During an impact, Safire Group’s shear thickening electrolyte technology enables the battery to resist deformation and prevents a short circuit – providing EV makers with lightweight crash protection and enabling Li-ion batteries to be used in novel ways.
Invented after nearly a decade of research and development by the U.S. Department of Energy’s Oak Ridge National Laboratory (ORNL), SAFIRE is currently being deployed by the company in four distinct use cases across broad domains: a ruggedized electric motorcycle, a rapidly deployable sensor tower, an unmanned ground vehicle, and multifunctional body armor.
“There is significant demand across the government to integrate SAFIRE technology into novel, ruggedized applications. This financing allows us to expand our operations in the Knoxville, Tennessee area, continue collaboration with ORNL, and further demonstrate the benefits of SAFIRE in government and automotive markets,” said John Lee, CEO of Safire Group. “We are excited about our partnership with Canaan and the opportunities it brings for the next stages of growth in deploying safety solutions for energy systems. Our focus remains on protecting people and critical assets while driving innovation in safety.”
About SAFIRE
Safire Group is a venture-backed company developing advanced Li-ion battery technologies for government and automotive markets. The company’s core technology, SAFe Impact Resistant Electrolyte (SAFIRE™), is the world’s only patented and proprietary drop-in additive for Lithium-ion (Li-ion) batteries that prevents fire through an instantaneous liquid-to-solid transformation upon kinetic impact, such as an electric vehicle (EV) crash or ballistic event. For more information, visit: www.safire.co.
Media Contact
info@safire.co
Logo – https://mma.prnewswire.com/media/2508443/Safire_Technology_Group_logo.jpg
View original content:https://www.prnewswire.com/apac/news-releases/safire-group-raises-8-million-in-new-financing-to-deliver-lithium-ion-battery-safety-technology-to-government-automotive-markets-302253094.html
SOURCE Safire Technology Group, Inc.
Technology
Logistics Automation Market to Reach $55 Billion by 2030, Driven by E-Commerce and Supply Chain Transformation – LogisticsIQ
Published
22 mins agoon
September 19, 2024By
NEW DELHI, Sept. 19, 2024 /PRNewswire/ — According to LogisticsIQ‘s latest report (5th edition), Logistics Automation Market is expected to grow to $55 Billion by 2030, at a CAGR of 15% between 2024 and 2030. The drivers of growth are the growth in the e-commerce industry, multichannel distribution channels, digital services, increasing e-grocery penetration and dark stores, globalization of supply chain networks, emergence of autonomous mobile robots (AMRs) and increasing demand for same day / same hour delivery.
Market Trends and Key Drivers
E-Commerce Boom and Its Impact on Logistics
The exponential growth of the e-commerce industry has significantly transformed the $5 trillion global logistics industry. Online retail requires more complex logistical processes, including individual picking, packing, and shipping, which contrasts with the bulk transportation model of brick-and-mortar retail. This surge in online retail, coupled with the increasing need for faster delivery times, is putting immense pressure on logistics providers to automate.Challenges and Market Conditions (2021-2025)
In 2021, logistics automation companies had a huge order intake, however, revenue growth was constrained by supply chain disruptions. Thus, the industry entered in 2022 with a backlog of orders, which was eventually reduced by 2023 due to macroeconomic uncertainties. In 2024, order volumes began to rise again, but cautious capital expenditure from retailers slowed down investments due to inflation, low consumer spending, and geopolitical tensions. We expect order volumes expected to rebound in 2025 as retailers aim to meet increasing consumer demand.Emerging Technologies and Market Players
The past few years have seen the emergence of cutting-edge technologies like automated picking systems, mobile manipulators, and automated cold storage solutions. Significant investments in companies like Symbotic, Geek+, Fabric, and Exotec Solutions reflect this growth. At the same time, established players such as Dematic, Honeywell Intelligrated, SSI Schafer, and Toyota Advanced Logistics continue to innovate. Additionally, major retailers including Walmart, Kroger, Amazon, Ocado, and Carrefour are actively adopting these technologies to enhance their supply chain capabilities.Apart this, piece picking players such as Righthand Robotics, Nimble, Fizyr, Kindred, Covariant, OSARO, Plus One Robotics, Berkshire Grey, and AWL have established a new attractive capability for order picking in ecommerce fulfillment as picking is least automated process in existing warehouses.
Download a Free Sample of our report on the Logistics Automation Market
Industry Consolidation in Logistics Automation Market
Over the last decade, the logistics automation market has experienced significant consolidation. Traditional industry players are acquiring innovative technology leaders to stay competitive and address evolving market demands. Notable examples include:
Rockwell Automation’s acquisition of Clearpath Robotics and OTTO MotorsZebra’s acquisition of Fetch RoboticsToyota’s acquisition of Vanderlande, Bastian Solutions and ViaStoreHoneywell’s acquisition of Intelligrated and TransnormJungheinrich acquired Magazino and ArculusSSI Schafer acquired DS AutomotionABB acquired ASTI Mobile Robotics and SevensenseKPI Solutions acquired Kuecker Logistics Group, Pulse Integration, QC SoftwareKörber acquired Cohesio Group, Siemens Logistics, HighJumpTeradyne acquired MiR, Energid, AutoGuide Mobile Robots
These mergers and acquisitions reflect the ongoing shift towards automation and the integration of cutting-edge technologies across the supply chain.
Read full report on the Logistics Automation Market Size, Growth, Share, Trends, and Forecast
Key Markets and Growth Opportunities
Top Markets: The United States, China, and Germany account for more than 50% of the demand for logistics automation, with strong market penetration in Europe, particularly in Germany, Italy, France, and the Netherlands. Western Europe represents around 30% of the global market. Emerging markets in APAC, particularly in India and Southeast Asia, are also showing strong growth potential, as are regions like the Middle East and Latin America.Emerging opportunities: Latin America is still under-penetrated with regards to automation; however, things are set to change and market is set to observe a high growth in Brazil and Mexico. Within Europe, Central and Eastern Europe is a fast-growing region, with Poland and Czech Republic emerging as logistics hub and showing good growth prospects.Grocery Industry: The grocery sector is a key area for logistics automation, driven by the need for high-frequency deliveries and the growing demand for online grocery services. Grocery distributors ship high cubic volumes of merchandise to retail stores with frequent deliveries to ensure product freshness. Grocery distribution center operations are amongst the most labour intensive of any industry. Grocery automation market is expected to reach over $7 billion by 2030.AGV and AMR Market Growth: The market for Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) is projected to experience rapid growth, with a CAGR of over 20% by 2030. AMRs, which can operate without external guidance systems like optical tape or sensors, are becoming increasingly popular due to their ease of deployment in existing warehouse infrastructures.We expect AGVs/AMRs to have more than 20% market share by 2030 in this market led by players such as Seegrid, Balyo, Hai Robotics, Geek+, GreyOrange, HikRobot, Quicktron, Locus Robotics, Fetch Robotics (Zebra), 6 River Systems (Ocado), Teradyne (MiR, AutoGuide Mobile Robots), Rocla, JBT, ek-robotics, Omron, Rockwell Automation (Clearpath Robotics, OTTO Motors). We further see more consolidation and M&A in the mobile robots space as larger System integrators look to complete their product portfolios.
Order Picking and Automation Trends
Manual vs. Automated Picking: The order picking process remains one of the most labor-intensive tasks in the warehouse, especially in e-commerce fulfillment. While manual picking is still preferred for operations with a large variety of SKUs, automated picking systems and robotic solutions are gaining traction. Technologies such as RFID, pick-to-light, and pick-to-voice systems help improve efficiency even in semi-automated environments.Piece Picking Robots: Companies such as Righthand Robotics, Berkshire Grey, Osaro, and Covariant are leading the charge in developing piece picking robots that are ideal for e-commerce fulfillment. These robots significantly reduce labor costs and increase throughput, offering a high return on investment for businesses.
What will you get in this report?
500+ Pages, 290+ Exhibits and 350+ Market tables for7 major Industry Verticals (eCommerce, Grocery, General Merchandise, Apparel, Food & Beverage, 3PL, Wholesale)10 Technologies (Mobile Robots, AS/RS, Conveyors, Sortation, Order Picking, Automatic Identification and Data Capture (AIDC), Palletizing and Depalletizing Robots, Overhead systems, Software (Warehouse Management, Warehouse Execution, and Warehouse Control), and MRO services.6 regions and 28 countries (United States, Canada, United Kingdom, Germany, France, Italy, Spain, Netherlands, Nordics, China, Japan, India, Australia, Thailand, Vietnam, Singapore, Indonesia, South Korea, Malaysia, Philippines, Taiwan, Saudi Arabia, UAE, Turkey, South Africa, Argentina, Brazil, Mexico)Pivot-friendly Excel file with 350+ market tables including forecast till 2030In-depth analysis of 700 companies in the ecosystem with more than 140+ company profilesFocus Group Discussion with 100+ key industry stakeholders across the value chain to collect the first-hand information to validate our analysis2 Analyst Sessions to brainstorm furtherInvestment details with 150+ M&A and 750+ funding dealsLogisticsIQ™ Exclusive Market Map (~700 Players across 15+ categories)
About LogisticsIQ
LogisticsIQ is a dedicated market research and advisory firm in Logistics & Supply Chain sector, empowering decision makers from top fortune 1000 companies, financial and research institutions, private equity and high potential start-ups with market insights to make better decisions. We enable this by analysing the right mix of the best data, the best research methodologies, and the best industry panel to deliver value to our clients.
Media Contact
Name: Sunny M.
Email: sunny@thelogisticsiq.com
Phone: +91-952-918-4938
Photo: https://mma.prnewswire.com/media/2509503/Logistics_Automation_Market.jpg
Logo: https://mma.prnewswire.com/media/2320412/LogisticsIQ_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/logistics-automation-market-to-reach-55-billion-by-2030-driven-by-e-commerce-and-supply-chain-transformation—logisticsiq-302252917.html
LYT ANNOUNCES DEPLOYMENT OF TRANSIT PRIORITY SOLUTIONS BY PARTNERING WITH ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA)
Safire Group Raises $8 Million in New Financing to Deliver Lithium-ion Battery Safety Technology to Government, Automotive Markets
Logistics Automation Market to Reach $55 Billion by 2030, Driven by E-Commerce and Supply Chain Transformation – LogisticsIQ
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