Etsy (ETSY) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y
In This Article:
Etsy, Inc. ETSY delivered fourth-quarter 2020 earnings of $1.08 per share, which surpassed the Zacks Consensus Estimate by 80%. Further, the figure significantly jumped from 25 cents in the year-ago quarter. Also, the bottom line rose 54.3% from the prior quarter.
Revenues advanced 128.7% year over year and 36.7% sequentially to $617.4 million. The figure also outpaced the Zacks Consensus Estimate of $517.4 million.
Top-line growth was driven by accelerating Marketplace and Services revenues. Moreover, solid momentum across both buyers and sellers contributed well. Additionally, strengthening gross merchandise sales (“GMS”) were tailwinds.
Further, the coronavirus pandemic-induced e-commerce boom continued to act as a major tailwind for the company. Moreover, solid holiday performance drove the results. The company witnessed strong momentum from Thanksgiving through Cyber Monday.
Furthermore, benefits from the Reverb acquisition contributed well to the company’s fourth-quarter results.
Additionally, efficient product and marketing initiatives, and improving non-mask sales remained positives. Also, the expanding footprint of Etsy Payments, and solid momentum across Etsy Ads and Offsite Ads were other positives.
The company remains optimistic about its investments across marketing channels. Further, advancing search algorithms, robust Etsy Ads and integration with Etsy Payments remain positives.
Coming to the price performance, Etsy has returned 241.1% over a year, outperforming the industry’s rally of 49.6%.
Top Line in Detail
Marketplace revenues were $473.6million (76.7% of total revenues), which went up 149.7% from the year-ago quarter. This was driven by strong momentum across buyers. The company witnessed 13 million new buyers and 7 million reactivated buyers on its Marketplace platform in the reported quarter. Further, strong traction across habitual and repeat buyers, which grew 157% and 97%, respectively, contributed well.
Services revenues were $143.8 million (23.3% of total revenues), which surged 79% on a year-over-year basis. Solid momentum across sellers, owing to the robust Etsy Ads program, which contributed to 74% year-over-year growth in the on-site advertising revenues in the fourth quarter, remained a major positive.
Quarter in Detail
Etsy’s active buyer base grew 76.7% from the prior-year quarter to 81.9 million. The active seller base stood at 4.4 million, which was up 61.7% year over year.
Notably, GMS of the company was $3.6 billion, which surged 117.7% year over year. Strong holiday sales contributed well. GMS from Thanksgiving through Cyber Monday increased 135% from the year-ago quarter.
Further, non-mask GMS grew 118% year over year in the reported quarter.
Additionally, strong GMS from paid channels, which accounted for 21% of total GMS, expanding 400 basis points (bps) year over year, remained major positive.