Etsy Inc (ETSY)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	410,775	341,610	364,767	291,204	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
Revenue (ttm)	US$ in thousands	2,808,332	2,798,492	2,772,384	2,753,454	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
Pretax margin		14.63%	12.21%	13.16%	10.58%	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%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $410,775K ÷ $2,808,332K
= 14.63%

Etsy Inc's pretax margin has shown fluctuating trends over the period analyzed. The pretax margin started at 6.72% as of March 31, 2020, and steadily increased, reaching its peak at 25.08% by March 31, 2021. However, there was a subsequent decline in the pretax margin to 16.04% by June 30, 2022.

Notably, there was a sharp negative turn in the pretax margin in the latter part of 2022, with margins falling to around -26% for the quarters ending September 30, 2022, December 31, 2022, and March 31, 2023. This negative trend continued until June 30, 2023 when the pretax margin hit a low of -27.49%.

From September 30, 2023, there was a significant rebound in the pretax margin, climbing back into positive territory, reaching 14.63% by December 31, 2024.

Overall, the pretax margin performance indicates that Etsy Inc experienced periods of both growth and decline in profitability before eventually recovering and showing positive momentum, albeit with fluctuations along the way.