Etsy Rises 20.6% as Q4 Results Surpass Expectations

E-commerce company Etsy, Inc. (NASDAQ: ETSY) has reported outstanding results for the fourth quarter ended December 31, 2021. The robust results were primarily driven by strong growth witnessed in revenues.

Following the upbeat earnings, shares of the company popped 20.6% to close at $154.50 in Thursday’s extended trading session.

Revenue & Earnings

Etsy recorded quarterly revenues of $717.1 million, up 16.2% year-over-year. Further, the figure outpaced the consensus estimate of $684.66 million. A 14.3% and 22.3% year-over-year rise in marketplace revenue and services revenue, respectively, drove the overall growth in revenues.

The company’s quarterly earnings per share (EPS) of $1.11 rose 2.8% year-over-year and surpassed the consensus estimate of $0.78 per share.

Other Operating Metrics

Etsy reported a consolidated GMS of $4.2 billion, up 16.5% from the same quarter last year. Meanwhile, Etsy’s marketplace GMS grew 11.8% year-over-year to $3.8 billion.

The company’s adjusted EBITDA of $218.8 million rose 14% year-over-year, while the adjusted EBITDA margin remained flat at 31%.

Active sellers and active buyers also rose 72.3% and 17.6% year-over-year to 7,522 and 96,336, respectively.

Management Commentary

The CEO of Etsy, Josh Silverman, said, “During the holiday season, our sellers — most businesses of one and insulated from widespread supply shortages or complex fulfillment processes — brought the benefits of shopping small to scale. Shoppers continue to love their experiences with Etsy and are coming back for more. Reflecting on 2021, it is fair to say that Etsy has retained much of the positive impact we’ve seen from the dramatic adoption of e-commerce following the start of the COVID-19 pandemic. In fact, more than half of Etsy’s 2020 active buyers, and 37% of new buyers came back to make a purchase in 2021.”

Stock Rating

Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Etsy stock prediction of $221.27 implies upside potential of 72.7% from current levels. Shares have declined 35.1% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Etsy’s performance this quarter.

According to the tool, year-to-date, the Etsy website traffic recorded a fall of 24.28%, compared to the previous year.

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