NYSE$ETSY

Etsy Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Etsy's Q4 2021 performance was marked by record levels of GMS, revenue, and adjusted EBITDA, driven by strong consumer demand and successful holiday season initiatives.

Etsy, Inc. reported a strong fourth quarter and full year 2021, with record GMS of $4.2 billion, up 16.5% year-over-year, and revenue of $717.1 million, up 16.2% year-over-year. Net income increased to $161.6 million, and non-GAAP Adjusted EBITDA reached a record $218.8 million.

  • Consolidated GMS reached a record $4.2 billion, up 16.5% year-over-year.
  • Consolidated revenue was a record $717.1 million, up 16.2% year-over-year.
  • Net income increased to $161.6 million, up 8.8% year-over-year.
  • Non-GAAP Adjusted EBITDA was a record $218.8 million, with a margin of 31%.

Headline financials

Total Revenue

$717M

Previous: $617M+16.2%
EPS (adj)

$1.11

Previous: $1.08+2.8%
Gross Merchandise Sales

$4.2B

Previous: $3.61B+16.5%
Active Sellers

7.5K

Previous: 4.4K+72.3%
Active Buyers

96.3K

Previous: 81.9K+17.6%
Capital Expenditures

$5.51M

Previous: $1.06M+421.1%
Free Cash Flow

$285M

Previous: $243M+17.5%
Net Income

$162M

Previous: $149M+8.8%
Operating Income

$142M

Previous: $161M-11.8%
Gross Profit

$508M

Previous: $467M+8.9%
Cash & Equivalents

$780M

Previous: $1.24B-37.3%
Total Assets

$3.83B

Previous: $2.4B+59.4%
Stock-Based Comp

$49.9M

Previous: $17.5M+185.7%

Revenue & EPS history

Etsy · Revenue · Quarterly

$717M

Q4 2021+16.2%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Etsy · $717M total across 2 segments · Q4 2021

  • Marketplace Revenue
    $541M+14.3%
  • Services Revenue
    $176M+22.3%

Forward guidance

Etsy’s guidance for the first quarter of 2022 includes GMS of $3.2B to $3.4B, Revenue of $565M to $590M, and Adjusted EBITDA margin of approximately 26%.

Tailwinds

  • Etsy can become the starting point for a buyer’s e-commerce journey.
  • Double down on frequency and trust building initiatives that inspire buyers with an Etsy that feels more ‘made for you’ and reliable, to drive buyer and seller loyalty.
  • Strengthening the foundation of our ‘House of Brands,’ scaling our infrastructure and safeguards to efficiently and sustainably power our growth.
  • Fostering an equitable and productive environment for our people.
  • Long-term growth strategy, focused on highly differentiated and defensible competitive advantages within what we believe is an enormous, $2 trillion total available retail market for our relevant categories in our core markets

Headwinds

  • Times remain uncertain
  • Assuming stable macroeconomic conditions, we currently expect lower GMS growth year over year in the first half of 2022 and higher GMS growth in the second half, given the more challenging comparisons in the first half.
  • Continue to invest in our people, product development, marketing, technology, and important infrastructure to scale our business.
  • High variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures
  • Unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted.

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 2021

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro