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.

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