Etsy Inc (ETSY)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,033,780	1,919,700	1,821,520	1,674,600	1,260,880
Revenue	US$ in thousands	2,808,330	2,748,380	2,566,110	2,329,110	1,725,620
Gross profit margin		72.42%	69.85%	70.98%	71.90%	73.07%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,033,780K ÷ $2,808,330K
= 72.42%

Etsy Inc's gross profit margin has shown a gradual decline over the years, starting at 73.07% as of December 31, 2020, and decreasing to 69.85% by December 31, 2023. However, there was a slight improvement in the gross profit margin to 72.42% by December 31, 2024. This metric indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's efficiency in managing production costs and pricing strategies. The downward trend observed until 2023 may suggest challenges in maintaining profitability, but the uptick in 2024 signifies a potential recovery or improved cost controls. Further analysis of factors impacting the cost structure and pricing mechanisms would provide additional insights into Etsy's overall performance and competitiveness.