NYSE$ETSY

Etsy Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a significant increase in GMS and revenue, driven by investments in product and marketing.

Etsy reported strong first-quarter results, with significant growth in GMS, revenue, and net income. The company's investments in product and marketing drove increased buyer engagement and frequency, contributing to healthy adjusted EBITDA margins.

  • Consolidated GMS increased by 132.3% year-over-year to $3.1 billion.
  • Consolidated revenue grew by 141.5% year-over-year to $550.6 million.
  • Net income increased by 1,048.1% year-over-year to $143.8 million, with diluted earnings per share of $1.00.
  • Active buyers reached 90.7 million, up 89.9% year-over-year.

Headline financials

Total Revenue

$551M

Previous: $228M+141.5%
EPS (adj)

$1.00

Previous: $0.10+900.0%
Gross Merchandise Sales

$3.14B

Previous: $1.35B+132.3%
Active Sellers

4.7K

Previous: 2.8K+67.1%
Active Buyers

90.7K

Previous: 47.7K+89.9%
Capital Expenditures

-$526K

Previous: -$567K+7.2%
Free Cash Flow

$143M

Previous: $12M+1098.2%
Net Income

$144M

Previous: $12.5M+1048.1%
Operating Income

$151M

Previous: $25.4M+493.9%
Gross Profit

$408M

Previous: $146M+180.0%
Cash & Equivalents

$1.16B

Previous: $442M+163.1%
Total Assets

$2.5B

Previous: $1.52B+64.6%
Stock-Based Comp

$20.4M

Previous: $13.8M+47.4%

Revenue & EPS history

Etsy · Revenue · Quarterly

$551M

Q1 2021+141.5%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Etsy · $551M total across 2 segments · Q1 2021

  • Marketplace Revenue
    $414M+165.3%
  • Services Revenue
    $137M+89.9%

Forward guidance

Etsy is not issuing guidance for the full year 2021 and will continue providing guidance on a quarterly basis until otherwise stated. For the second quarter of 2021, Etsy expects GMS year-over-year growth of 5% - 15%, revenue year-over-year growth of 15% - 25%, and an adjusted EBITDA margin of 25% - 28%.

Tailwinds

  • GMS Year-Over-Year Growth: 5% - 15%
  • GMS: ~$2.8B - $3.1B
  • Revenue Year-Over-Year Growth: 15% - 25%
  • Revenue: ~$493M - $536M
  • Adjusted EBITDA Margin: 25% - 28%

Headwinds

  • Uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic.
  • Expects Q2 2021 GMS to decelerate along with the rest of e-commerce
  • Lapping the tremendous 2020 growth rates.
  • Not issuing guidance for the full year 2021.
  • Providing guidance on a quarterly basis until otherwise stated.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.8%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

45%

20 / 44 earnings

Positive

+27.8%

Q4 2021

Best reaction

-32.8%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.2%+1.4%+7.4%
Q4 2025+9.3%+23.5%+20.0%
Q3 2025-12.5%-18.3%-27.5%
Q1 2025-5.7%-2.3%+20.0%
Q4 2024-10.1%-7.1%-21.3%
Q3 2024+8.3%+10.1%+15.5%
Q2 2024-6.8%-14.1%-14.6%
Q1 2024-13.7%-9.0%-7.6%
Q4 2023-6.9%-5.2%-10.6%
Q3 2023-1.1%+1.3%+31.7%
Q2 2023-15.9%-14.4%-24.3%
Q1 2023-6.7%-6.5%-14.3%
Q4 2022+5.4%-3.4%-14.4%
Q3 2022+9.4%+8.5%+53.7%
Q2 2022+12.5%+11.1%+11.7%
Q1 2022-9.5%-14.1%-19.4%
Q4 2021+27.8%+35.2%+13.6%
Q3 2021+12.7%+8.4%-3.9%
Q2 2021-4.2%-3.9%+15.7%
Q1 2021-16.3%-11.3%-12.9%
Q4 2020+5.3%+14.0%-3.2%
Q3 2020-9.2%-13.3%+10.1%
Q2 2020+0.7%+3.8%-13.7%
Q1 2020+5.2%+10.3%+8.1%
Q4 2019+16.1%+17.9%-22.5%
Q3 2019-18.2%-17.8%-20.3%
Q2 2019-10.9%-17.4%-21.2%
Q1 2019-9.3%-14.5%-4.6%
Q4 2018+21.1%+28.4%+15.6%
Q3 2018+18.7%+23.5%+31.7%
Q2 2018+5.5%+10.9%+14.1%
Q1 2018-4.6%-4.5%+6.4%
Q4 2017+19.8%+21.7%+32.9%
Q3 2017+1.6%+0.8%+13.0%
Q2 2017+8.1%+11.4%+16.3%
Q1 2017-5.0%+5.4%+22.5%
Q4 2016-16.4%-20.3%-18.7%
Q3 2016-13.2%-11.8%-8.1%
Q2 2016+16.7%+16.1%+16.2%
Q1 2016+3.6%
Q4 2015-0.6%
Q3 2015-6.7%
Q2 2015-32.8%
Q1 2015-16.3%
Q4 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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