Etsy up 20% on Q4 results: ‘we’re just getting started’

Shares of Etsy Inc (NASDAQ: ETSY) are up nearly 20% in extended trading after the eCommerce company said its Q4 results topped Wall Street expectations, thanks to continued strength in active buyers and sellers.

Key takeaways for investors

Etsy earned $161.6 million versus the year-ago figure of $148.5 million.
Per-share earnings climbed from $1.08 last year to $1.11 in Q4.
Revenue jumped 16.2% to $717.1 million in the recent quarter.
Analysts had forecast 77 cents of EPS on $685.4 million in revenue.
Gross merchandise sales increase 16.5% YoY to handily beat expectations.
Higher marketing and product development spend fuelled a 20% increase in operating expenses.

Etsy is in Jim Cramer’s top two junior growth stocks. Including the after-hours price action, it is still down nearly 50% from its high in late November.

CEO Silverman’s remarks

Active buyers and sellers were up 18% and 72%, respectively. In the earnings press release, CEO Josh Silverman said:

Etsy retained the positive impact from the dramatic adoption of eCommerce amidst the pandemic. Over 50% of 2020 active buyers, and 37% of new buyers came back to shop in 2021. Even in a world of greatly expanded choice, Etsy remained top of mind for customers.

For the current quarter, Etsy forecasts up to $590 million in revenue and $3.2 billion to $3.4 billion in gross merchandise sales. In comparison, analysts had called for $630.4 million in Q1 revenue. Silverman added:

While times remain uncertain, our ambition is steadfast. In 2022, we plan to double down on frequency and trust building initiatives. We’re just getting started executing on our long-term growth strategy within the $2.0 trillion TAM where Etsy represents just 2.6% of the $466 billion online portion.

The post Etsy up 20% on Q4 results: ‘we’re just getting started’ appeared first on Invezz.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 All Rights Reserved.

To Top