Etsy Third-Quarter Revenue Rises 11 Percent to $692.5 Million

Etsy Inc reported third-quarter revenue of $692.5 million, an 11% increase that exceeded Wall Street expectations. The company's total net income surged to $853.5 million, driven largely by an $839.7 million gain from the sale of the secondhand fashion marketplace Depop, which was completed on July 30.

Operational growth included an 8.8% rise in gross merchandise sales to $2.65 billion and an 8.6% increase in net income from continuing operations to $113.6 million. The company recorded its first year-on-year growth in active buyers in two years, reaching 87.5 million, while active sellers grew 6.5% to 5.8 million.

Chief Executive Kruti Patel Goyal attributed these results to a strategy centered on discovery, marketing, and personalization. Looking ahead to the fourth quarter, the company forecasts an adjusted EBITDA margin of approximately 30% and gross merchandise sales growth between 5% and 7%.