NYSE$ETSY

Etsy Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Etsy maintained most of its pandemic gains and delivered strong bottom line performance while investing in key initiatives.

Etsy's second quarter results showed a revenue increase of 10.6% year-over-year, driven by the Etsy marketplace transaction fee increase and the addition of Depop and Elo7. Despite facing macroeconomic headwinds, the company maintained profitability and continued to invest in customer experiences and growth initiatives.

  • Consolidated GMS was $3.0 billion, down 0.4% year-over-year but up 2.6% on a currency neutral basis.
  • Consolidated revenue was $585.1 million, up 10.6% versus the second quarter of 2021.
  • Net income was $73.1 million, down 25.6% year-over-year, with diluted earnings per share of $0.51.
  • Non-GAAP Adjusted EBITDA was $162.7 million, with Non-GAAP Adjusted EBITDA margin of 28%.

Headline financials

Total Revenue

$585M

Previous: $529M+10.6%
EPS (adj)

$0.51

Previous: $0.68-25.0%
Gross Merchandise Sales

$3.03B

Previous: $3.04B-0.4%
Active Sellers

7.4K

Previous: 5.2K+41.5%
Active Buyers

93.9K

Previous: 90.5K+3.8%
Capital Expenditures

-$5.63M

Previous: -$1.92M-193.8%
Free Cash Flow

$67.5M

Previous: $96.3M-29.9%
Net Income

$73.1M

Previous: $98.3M-25.6%
Operating Income

$72.6M

Previous: $89.1M-18.6%
Gross Profit

$414M

Previous: $380M+8.9%
Cash & Equivalents

$759M

Previous: $2.05B-63.1%
Total Assets

$3.61B

Previous: $3.29B+9.6%
Stock-Based Comp

$64.4M

Previous: $27.4M+134.5%

Revenue & EPS history

Etsy · Revenue · Quarterly

$585M

Q2 2022+10.6%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Etsy · $585M total across 2 segments · Q2 2022

  • Marketplace Revenue
    $440M+11.1%
  • Services Revenue
    $146M+9.1%

Forward guidance

Etsy’s guidance for the third quarter of 2022 is: GMS: $2.8B to $3.0B, Revenue: $540M to $575M, Adjusted EBITDA margin: Approximately 26%.

Tailwinds

  • Focusing on driving great customer experiences.
  • Investing with discipline and care.
  • Helping the team minimize distractions.
  • Driving value for sellers.
  • Giving buyers experiences they can't find anywhere else.

Headwinds

  • Multiple scenarios possible for the remainder of 2022.
  • Guidance assumes currency exchange rates remain unchanged at current levels.
  • Macroeconomic uncertainty.
  • Political instability.
  • Changes in overall levels of consumer spending

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 2022

Historical avgQ2 2022

-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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