NYSE$ETSY

Etsy Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Etsy's business remained strong in a volatile environment, demonstrating its unique position in e-commerce.

Etsy's Q3 2022 results showed a strong business performance despite a volatile environment. Consolidated revenue increased by 11.7% year-over-year to $594.5 million, while GMS decreased slightly by 3.3% year-over-year to $3.0 billion. The company reported a net loss of $963.1 million, primarily due to an impairment charge, but maintained a solid Non-GAAP Adjusted EBITDA of $167.8 million.

  • Consolidated GMS was $3.0 billion, a decrease of 3.3% year-over-year.
  • Consolidated revenue increased by 11.7% year-over-year to $594.5 million.
  • Net loss was $963.1 million, impacted by an impairment charge of $1.0 billion related to Depop and Elo7.
  • Non-GAAP Adjusted EBITDA was $167.8 million, with a margin of 28%.

Headline financials

Total Revenue

$594M

Previous: $532M+11.7%
EPS (adj)

$0.58

Previous: $0.62-6.5%
Gross Merchandise Sales

$3B

Previous: $3.11B-3.3%
Active Sellers

7.4K

Previous: 7.5K-0.9%
Active Buyers

94.1K

Previous: 96.0K-1.9%
Capital Expenditures

-$8.35M

Previous: -$5.74M-45.5%
Free Cash Flow

-$971M

Previous: $84.2M-1253.8%
Net Income

-$963M

Previous: $89.9M-1170.9%
Operating Income

-$955M

Previous: $83.7M-1240.2%
Gross Profit

$420M

Previous: $379M+10.9%
Cash & Equivalents

$790M

Previous: $619M+27.5%
Total Assets

$2.45B

Previous: $3.5B-30.0%
Stock-Based Comp

$52.9M

Previous: $42.3M+25.2%

Revenue & EPS history

Etsy · Revenue · Quarterly

$594M

Q3 2022+11.7%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Etsy · $594M total across 2 segments · Q3 2022

  • Marketplace Revenue
    $443M+12.1%
  • Services Revenue
    $151M+10.3%

Forward guidance

Etsy's guidance for Q4 2022 includes GMS of $3.6B to $4.0B, revenue of $700M to $780M, and an Adjusted EBITDA margin of approximately 27%.

Tailwinds

  • GMS: $3.6B to $4.0B
  • Revenue: $700M to $780M
  • Adjusted EBITDA margin: Approximately 27%
  • Differentiated inventory across our House of Brands
  • Variable cost model

Headwinds

  • Uncertainty in consumer spending on gift giving
  • Uncertainty in online vs. in-mall shopping preferences
  • Continued economic uncertainty
  • Global macroeconomic uncertainty
  • Volatility in general market conditions

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 Q3 2022

Historical avgQ3 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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