Etsy Q1 2022 Earnings Report
Key Takeaways
Etsy, Inc. reported a 5.2% increase in consolidated revenue to $579.3 million and a 3.5% increase in consolidated GMS to $3.3 billion for the first quarter of 2022. Net income was $86.1 million, with diluted earnings per share of $0.60.
Consolidated GMS increased by 3.5% year-over-year to $3.3 billion.
Consolidated revenue grew by 5.2% year-over-year to $579.3 million.
Net income decreased by 40.1% year-over-year to $86.1 million, with diluted earnings per share of $0.60.
Etsy marketplace acquired approximately 7 million new buyers.
Etsy
Etsy
Etsy Revenue by Segment
Etsy Revenue by Geographic Location
Forward Guidance
Etsy’s guidance for the second quarter of 2022 includes GMS between $2.9B and $3.2B, revenue between $540M and $590M, and an Adjusted EBITDA margin of approximately 25%.
Positive Outlook
- Etsy is focused on delivering value to sellers by attracting new buyers.
- Etsy is increasing buyer purchase frequency.
- Etsy has a world-class team with the creativity and conviction to invest with purpose.
- Etsy believes they offer something different across every brand in their House.
- Etsy sees the size of the prize as enormous.
Challenges Ahead
- Guidance implies a decline of low to high single digits for Etsy marketplace GMS year-over-year.
- Consumers have less disposable income.
- Consumers have many more places to spend their disposable income.
- Macroeconomic uncertainty.
- Etsy is emerging from an unprecedented time of unprecedented growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income