Etsy Announces Fourth Quarter Financial Results

Etsy, Inc. (NASDAQ: ETSY) share value rose over 10% on after reporting fourth-quarter earnings that beat expectations.

Chief Executive Officer of Etsy, Josh Silverman said “On a currency-neutral basis, 2018 gross merchandise sales grew 20.4% to USD 3.9 Billion for the year, revenue was up 36.8% to USD 603.7 Million for the year, and we improved our margins. We kept our focus on improving search and discovery, building trust in the marketplace, expanding our marketing channels, and investing in services that fuel our sellers’ success.”

During the fourth quarter, the company reported earnings of USD 0.32 per share on revenues of USD 200 Million, which was higher than the initial EPS of USD 0.21 on revenues of USD 194.9 Million by analysts. On top of this, fourth quarter revenue grew 46.8% compared to the same period last year. Additionally, the number of active sellers at the end of the quarter was up 9.4% from the end of 2017 and the number of active buyers grew 18.2%. According to CNBC, “Etsy expects 2019 revenues of between USD 779 Million and USD 797 Million”.

Some other Fourth Quarter 2018 Operational and Financial results reported by PRNewswire:

  • “from Thanksgiving through Cyber Monday, the five key shopping days, was up 30% compared to the same period last year, driven primarily by product launches, marketing, and improved landing page experiences.”
  • “International GMS was 36% of overall GMS, and increased 32% year-over-year on a currency-neutral basis, driven by GMS between U.S. buyers and international sellers and by our fastest growing international trade route, international domestic, which is GMS generated between a non-U.S. buyer and a non-U.S. seller both in the same country.”
  • “GMS from paid channels was 20% of overall GMS in the fourth quarter of 2018, expanding 400 bps year-over-year, and up 55% compared to the fourth quarter of 2017.”
  • “Total revenue was $200.0 million for the fourth quarter of 2018, up 46.8% year-over-year, driven by growth in both Marketplace and Services revenue.”
  • “Gross profit for the fourth quarter of 2018 was $142.9 million, up 55.3% year-over-year, and gross margin was 71.4%, up 390 basis points compared with 67.5% in the fourth quarter of 2017.”
  • “Net income for the fourth quarter of 2018 was $41.3 million, with diluted earnings per share of $0.32, which benefited from the release of a valuation allowance in our foreign jurisdictions.”
  • “Non-GAAP Adjusted EBITDA for the fourth quarter of 2018 was $51.4 million and grew 47.5% year-over-year. Non-GAAP Adjusted EBITDA margin (i.e., non-GAAP Adjusted EBITDA divided by revenue) was 25.7% in the fourth quarter of 2018, up 10 basis points year-over-year. Adjusted EBITDA performance was driven primarily by revenue growth related to changes in the Company’s pricing model.”
3 Comments
  1. Zack Clayton 3 years ago
    Reply

    can Amazon put $ETSY out of business?

    • Paul Rubio 3 years ago
      Reply

      I’ve been saying for a while now, where are the Wall Street analysts? $ETSY out with a good quarter, but the stock is on a rocket ship ride once again. Approaching a 60 PE, is that right, not right? I haven’t seen one headline analysis report. Stock prices moving like crypto.

  2. Dillon Harper 3 years ago
    Reply

    $ETSY this is what i call a bad trading stock for DTs. just look at yesterday AH n prior failed BO attempt. So I have successfully traded this stock 3x (1st on failed BO attempt early Feb, yesterday AH n now this morning). thats why i took profit on freeroll

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