NYSE$ETSY

Etsy Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Etsy's Q4 2019 financial results were released, showcasing significant growth in GMS and revenue.

Etsy reported a strong Q4 2019 with consolidated GMS growing by 32.8% and revenue increasing by 35.0%. The company's investments in marketing, product development, and technology drove the positive results.

  • Consolidated GMS increased by 32.8% year-over-year.
  • Revenue grew by 35.0% compared to the previous year.
  • Active buyers and sellers increased by 17.5% and 27.6% year-over-year, respectively.
  • The transition to the cloud played a key role in product development efforts.

Headline financials

Total Revenue

$270M

Previous: $200M+35.0%
EPS (adj)

$0.25

Previous: $0.32-21.9%
Gross Merchandise Sales

$1.66B

Previous: $1.25B+32.8%
Active Sellers

2.7K

Previous: 2.1K+27.6%
Active Buyers

46.4K

Previous: 39.4K+17.5%
Capital Expenditures

$1.64M

Previous: $577K+184.1%
Free Cash Flow

$76.9M

Previous: $101M-24.0%
Net Income

$31.3M

Previous: $41.2M-24.1%
Operating Income

$25M

Previous: $29.5M-15.1%
Gross Profit

$179M

Previous: $143M+25.4%
Cash & Equivalents

$443M

Previous: $367M+20.8%
Total Assets

$1.54B

Previous: $902M+71.0%
Stock-Based Comp

$13.3M

Previous: $14.2M-6.4%

Revenue & EPS history

Etsy · Revenue · Quarterly

$270M

Q4 2019+35%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Etsy · $270M total across 2 segments · Q4 2019

  • Marketplace Revenue
    $190M+25.3%
  • Services Revenue
    $80.3M+65.2%

Forward guidance

Etsy expects to continue improving search and discovery, building trust and human connections, expanding its integrated marketing approach, and investing to fuel sellers’ success. Etsy marketplace is expected to grow 16-20% in 2020, outpacing e-commerce growth, and revenue is expected to grow at a faster rate.

Tailwinds

  • Continue improving search and discovery
  • Building trust and human connections in the marketplace
  • Expanding our integrated marketing approach
  • Investing to fuel our sellers’ success
  • Etsy marketplace expected to grow 16-20% in 2020

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 Q4 2019

Historical avgQ4 2019

-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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