Etsy Inc (ETSY)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	292,820	311,532	-734,452	-666,704	-661,988	-645,495	387,321	399,913	471,654	480,588	487,182	513,744	365,709	235,153	154,849	58,902	80,646	80,771	85,278	73,534
Revenue (ttm)	US$ in thousands	2,748,377	2,713,296	2,671,463	2,627,722	2,566,111	2,476,009	2,413,969	2,357,734	2,329,114	2,229,330	2,148,379	2,048,216	1,725,625	1,378,268	1,124,737	877,095	818,379	748,409	700,828	652,120
Pretax margin		10.65%	11.48%	-27.49%	-25.37%	-25.80%	-26.07%	16.04%	16.96%	20.25%	21.56%	22.68%	25.08%	21.19%	17.06%	13.77%	6.72%	9.85%	10.79%	12.17%	11.28%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $292,820K ÷ $2,748,377K
= 10.65%

The pretax margin of Etsy Inc has displayed fluctuating performance over the eight quarters presented. In Q4 2023, the pretax margin stood at 10.65%, showing a slight decline from the previous quarter's 11.48%. However, compared to the same period the previous year, there has been an improvement as Q4 2022 had a lower pretax margin of -25.80%.

The trend over the past year has shown significant variability, with Q2 and Q1 of 2023 exhibiting negative pretax margins of -27.49% and -25.37%, respectively. This indicates challenges in controlling expenses or generating higher revenues during those periods.

Conversely, there were strong performances in Q2 and Q1 of 2022, with pretax margins reaching 16.04% and 16.96%, respectively. This suggests effective cost management or increased revenue generation during those quarters.

Overall, the pretax margin of Etsy Inc has been volatile, reflecting fluctuations in profitability levels. Further analysis of the underlying factors driving these fluctuations would provide valuable insights into the company's financial performance and strategic direction.