Etsy Shares Soar After Q2 Results Beat, Upbeat Q3 Outlook

Etsy Shares Soar After Q2 Results Beat, Upbeat Q3 Outlook
  • Etsy Inc ETSY reported second-quarter revenue growth of 10.6% year-over-year to $585.14 million, beating the consensus of $557.25 million.
  • The revenue performance reflects the Etsy marketplace transaction fee increase.
  • EPS of $0.51 beat the consensus of $0.34.
  • Consolidated GMS was $3 billion, down 0.4% Y/Y, while Etsy marketplace GMS was $2.6 billion, down 6% Y/Y and up 141% compared to 2Q19.
  • The Etsy marketplace acquired ~6 million new buyers. Non-U.S. GMS for the Etsy marketplace was 44% of overall GMS, increasing 3% Y/Y on a currency-neutral basis.
  • The adjusted EBITDA was $162.7 million (+16.7% Y/Y), and the margin was 28%, up 200 bps.
  • The gross margin contracted by 113 bps to 70.7%. The operating margin fell by 18.6% Y/Y to $72.56 million, and the margin contracted by 445 bps 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 equivalents.
  • Etsy repurchased an aggregate of ~$62 million, or 690,992 shares, of its common stock during the quarter.
  • "Despite facing headwinds caused by macroeconomic and geopolitical factors, we believe the improvements we've driven in customer experiences across the Etsy marketplace and our House of Brands, coupled with continued focus on our 'Right to Win' strategy, will enable us to unlock the enormous long-term opportunities we see ahead" commented Josh Silverman, Etsy, Inc. Chief Executive Officer.
  • 3Q22 Outlook: Etsy expects GMS of $2.8 billion - $3 billion and Revenue of $540 million - $575 million vs. a consensus of $570.27 million. It expects an Adjusted EBITDA margin of ~26%.
  • Price Action: ETSY shares are trading higher by 14.70% at $109.50 during the post-market session on Wednesday.
  • Photo via Wikimedia Commons

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