By
Tolu Ajiboye
December 19th, 2023
A keynote in the Q4 resultsis that gross merchandise value increased by 16%. Etsy also confirmed a consolidated gross merchandise value of $4.2 billion, up 16.5%.
Etsy Inc (NASDAQ: ETSY) stock rose 18% in extended trading on the 24th of February, right after it announced impressive fourth quarter (Q4) results. The gain came after the company earlier soared 10% during the day.
During the pandemic in 2020, Etsy sales soared 100% due to the lockdown. Those customers who make up 37% have been active since, while new buyers joined. During Q4, Etsy recorded 96.3 million active buyers and 7.5 million active sellers. Hence, an increased revenue crossing estimations in the quarter.
Etsy Q4 earnings were estimated at 79 cents per share to $685 million. Instead, it adjusted to $1.11 totaling $717 million in revenue. Contrary to the estimations, Etsy made more revenue in Q4 with claims to have onboard new customers.
Expectations for Q1 are between $565 million and $590 million, while analyst’s prediction is $630 million. Both the expectations and estimation for Q1 are lower than Q4 forecasts. Etsy connects the low expectations of Q1 to a relaxed lockdown policy. Unlike during the pandemic, people now do more walk-ins.
One would expect a fierce reaction from investors. Rather, they are focused on the Etsy Q4 results. Etsy and its competitors all experienced increased revenue at the pandemic’s peak. Rachel Glaser, Chief Financial Officer of Etsy, believes it will keep expanding. She said:
“Even without the significant tailwinds of stimulus checks and lockdowns, our first quarter 2022 guidance reflects our expectation that we will keep all of the gains made in 2021- indicating our belief in the durability of the last two years’ growth. Furthermore, 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.”
Etsy Q4 Gross Merchandise Value
A keynote in the Q4 resultsis that gross merchandise value increased by 16%. Etsy also confirmed a consolidated gross merchandise value of $4.2 billion, up 16.5%.
Commenting on the Q4 result release, Etsy’s Chief Executive attributed an early and strong kickoff in October and “extended strength through December” to the performance. Additionally, CEO Josh Silverman noted:
“Reflecting on 2021, it is fair to say that Etsy has retained much of the positive impact we’ve seen from the dramatic adoption of e-commerce following the start of the Covid-19 pandemic.”
The American online retail outlet is best known to offer vintage, handmade, and personalized fashion items that are not as common in other marketplaces. These items fall under a wide range of categories, including bags, clothing, decorative items, art products, tools, as well as craft supplies.
At the time of writing, Etsy’s stock value is $154, making a 20.16% increase in after-hours trading.
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