Etsy Earnings Q2 21, stock down on poor forecast
At the company’s Brooklyn headquarters, an employee walks past a quilt that has Etsy Inc. signs on it.
Victor J. Blue / Bloomberg via Getty Images
Etsy reported better-than-expected second-quarter results after the bell on Wednesday, but gave an outlook for the current quarter suggesting the pandemic-fueled e-commerce boom may stall.
The share lost up to 14% in extended trading.
Here’s how the company performed compared to the expectations of the analysts surveyed by Refinitiv:
- Merits: 68 cents per share vs. 63 cents per share expected
- Revenue: Expected $ 528.9 million versus $ 524.7 million
Revenue growth slowed quarter-on-quarter to 23.4% year-on-year. That’s a significant slowdown from the last few quarters, when revenue growth exceeded 100% in each of the last four quarters.
The results highlight concerns that the pandemic surge in e-commerce activity is easing as vaccinated consumers spend less online and more on travel and other services. Last week, Etsy, eBay, and Wayfair stocks were all dragged down after Amazon reported sales and issued a forecast that fell below expectations.
Etsy, which runs an online marketplace known for handcrafted and personalized goods, has been one of the biggest beneficiaries of the pandemic, with shoppers visiting the site for things like face masks and housewares.
“Etsy performance in the second quarter of 2021 is quite remarkable considering how dramatically the world has changed over the same period last year,” said Etsy CEO Josh Silverman in a statement. “I and our entire team are deeply pleased that we can report strong growth compared to the previous year, with GMS and sales increasing by approx. 13% and 23% respectively second quarter by 31%. “
For the current quarter, Etsy expects revenue between $ 500 million and $ 525 million, a year-over-year growth rate of 13.5% as of mid-year. Analysts polled by StreetAccount expected third-quarter revenues of $ 527.5 million.