Why Etsy (ETSY) Stocks Are Soaring After Hours

  • Etsy Inc. ETSY reported second-quarter revenue growth of 10.6% year-over-year to $585.14 million, beating consensus of $557.25 million.
  • Revenue performance reflects increased Etsy marketplace transaction fees.
  • EPS of $0.51 beat the consensus of $0.34.
  • Consolidated GMS was $3 billion, down 0.4% year-on-year, while Etsy Marketplace GMS was $2.6 billion, down 6% year-on-year and up 141 % compared to 2Q19.
  • The Etsy Marketplace acquired approximately 6 million new buyers. Non-US GMS for the Etsy marketplace accounted for 44% of overall GMS, growing 3% year-over-year on a currency-neutral basis.
  • Adjusted EBITDA was $162.7 million (+16.7% year-over-year) and margin was 28%, up 200 basis points.
  • Gross margin contracted by 113 basis points to 70.7%. Operating margin fell 18.6% year-on-year to $72.56 million, and margin contracted 445 basis points to 12.4%.
  • Net cash provided by operating activities year-to-date was $185.29 million for the quarter, compared to $270.16 million in 2Q21. The company ended the quarter with $764.22 million in cash and cash equivalents.
  • Etsy repurchased a total of approximately $62 million, or 690,992 shares, of its common stock during the quarter.
  • “Despite headwinds caused by macroeconomic and geopolitical factors, we believe that the improvements we have made to the customer experience in the Etsy marketplace and our House of Brands, coupled with a continued focus on our ‘Right to Win’ strategy , will allow us to unlock the huge long-term opportunities we see before us,” commented Josh Silverman, CEO of Etsy, Inc.
  • 3Q22 outlook: Etsy expects GMS of $2.8-3 billion and revenue of $540-575 million against a consensus of $570.27 million. He expects an adjusted EBITDA margin of around 26%.
  • Price action: ETSY shares are trading up 14.70% at $109.50 in Wednesday’s aftermarket session.
  • Photo via Wikimedia Commons
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