NYSE$ETSY

Etsy Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Etsy's Q2 2020 financial results were reported, showing significant growth in GMS and revenue.

Etsy, Inc. reported extremely strong second-quarter results, with consolidated GMS increasing by 146% and revenue increasing by 137%. The company's success is attributed to the agility of their team, the strength of their brand, the innovation of their sellers, and the unique inventory on the Etsy marketplace.

  • Consolidated GMS increased by 146% year-over-year.
  • Total revenue increased by 136.7% year-over-year.
  • Net income increased by 429.1% year-over-year.
  • Active buyers grew 41.0% year-over-year.

Headline financials

Total Revenue

$429M

Previous: $181M+136.7%
EPS (adj)

$0.75

Previous: $0.15+400.0%
Gross Merchandise Sales

$2.69M

No prior period
Active Sellers

3.1K

No prior period
Active Buyers

60.3K

No prior period
Capital Expenditures

-$209K

Previous: -$3.75M+94.4%
Free Cash Flow

$96.2M

Previous: $14.5M+564.7%
Net Income

$96.4M

Previous: $18.2M+429.1%
Operating Income

$119M

Previous: $17.8M+567.5%
Gross Profit

$317M

Previous: $122M+159.1%
Cash & Equivalents

$678M

Previous: $359M+88.6%
Total Assets

$1.76B

Previous: $1.02B+72.4%
Stock-Based Comp

$16.7M

Previous: $10.8M+54.3%

Revenue & EPS history

Etsy · Revenue · Quarterly

$429M

Q2 2020+136.7%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Etsy · $429M total across 2 segments · Q2 2020

  • Marketplace Revenue
    $332M+145.6%
  • Services Revenue
    $96.7M+110.7%

Forward guidance

Etsy provided guidance for the third quarter of 2020, anticipating continued strong growth in GMS and revenue, driven by shifts in consumer shopping habits and the company's competitive advantages.

Tailwinds

  • GMS Year-Over-Year Growth: 80% - 110%
  • Revenue Year-Over-Year Growth: 85% - 115%
  • Adjusted EBITDA Margin: 28% - 32%
  • Events of the last few months have driven dramatic shifts in consumer shopping habits, which we believe will increase the total available market opportunity for Etsy
  • Strong second quarter trends extended through July.

Headwinds

  • Uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic.
  • Limited visibility for the fourth quarter, particularly related to macro trends and consumer spending around Holiday.
  • The COVID-19 pandemic continues to impact GMS and results of operations in numerous ways that remain volatile and unpredictable
  • Fluctuation of quarterly operating results
  • Failure to meet publicly announced guidance or other expectations

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 Q2 2020

Historical avgQ2 2020

-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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