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Ecommerce company Etsy Inc ETSY reported fourth-quarter financial results after the market close Wednesday. Here are the key highlights.
What Happened: Etsy reported fourth-quarter revenue of $807.24 million, which was an increase of 12.6% year-over-year. The revenue total beat a Street estimate of $751.3 million, according to data from Benzinga Pro.
The fourth-quarter consolidated revenue total was a company record, Etsy said.
The company reported earnings per share of 77 cents in the fourth quarter, missing a Street estimate of 80 cents per share.
Etsy saw gross merchandise sales of $4 billion in the fourth quarter, down 4% year-over-year.
In the fourth quarter, Etsy said it acquired around 9.5 million new buyers. New buyer acquisition was up 60% from the fourth quarter of 2019 and down year-over-year.
Etsy reported full-year revenue of $2.57 billion, up 10.2% year-over-year. Full-year GMS was $13.32 billion, down 1.3% year-over-year.
Etsy ended the fourth quarter with $1.2 billion in cash.
The company purchased 1.34 million shares worth around $150 million in the fourth quarter.
“The Etsy marketplace’s strong holiday performance and accelerating year-over-three-year GMS in the fourth quarter enabled us to end the year on a high note,” Etsy’s Chief Financial Officer Rachel Glaser said.
“We are now nearly three times the size we were pre-pandemic, and we’ve been careful about how we have grown our cost basis to catch up with the size of the business – visible in our sustained profitable growth and strong free cash flow.”
Related Link: Etsy Has Hit A new Low As A Public Company, Why Short Seller Andrew Left Is Sounding Alarm
What’s Next: Etsy is guiding for first-quarter revenue to come in a range of $600 million to $640 million, in the center of a Street estimate of $621.6 million, according to data from Benzinga Pro.
The company sees GMS hitting a range of $2.95 billion to $3.15 billion in the first quarter.
“Etsy’s ‘Right to Win’ strategy remains robust and relevant, and we have deep conviction in our ability to compete by strategically differentiating our value proposition, focusing on our sellers’ unique items, best-in-class search and discovery, human connections and a trusted brand,” Etsy CEO Josh Silverman said.
“This year we’ll be focused on welcoming new buyers to the joy of Etsy.”
Glaser said Etsy will continue to focus on growth investments while protecting its margins.
“We believe that put us in a position of relative strength; and it’s our goal to do that again in 2023.”
ETSY Price Action: Etsy shares were trading 4.92% higher at $134.77 in Wednesday’s after-hours session.
Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.