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Jun 30, 2020
Etsy Q2 2020 Earnings Report
Etsy's Q2 2020 financial results were reported, showing significant growth in GMS and revenue.
Key Takeaways
Etsy, Inc. reported extremely strong second-quarter results, with consolidated GMS increasing by 146% and revenue increasing by 137%. The company's success is attributed to the agility of their team, the strength of their brand, the innovation of their sellers, and the unique inventory on the Etsy marketplace.
Consolidated GMS increased by 146% year-over-year.
Total revenue increased by 136.7% year-over-year.
Net income increased by 429.1% year-over-year.
Active buyers grew 41.0% year-over-year.
Etsy
Etsy
Etsy Revenue by Segment
Etsy Revenue by Geographic Location
Revenue by Segment
Marketplace Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Consolidated Revenue
CapyFin.com Forward Guidance
Etsy provided guidance for the third quarter of 2020, anticipating continued strong growth in GMS and revenue, driven by shifts in consumer shopping habits and the company's competitive advantages.
Positive Outlook
- GMS Year-Over-Year Growth: 80% - 110%
- Revenue Year-Over-Year Growth: 85% - 115%
- Adjusted EBITDA Margin: 28% - 32%
- Events of the last few months have driven dramatic shifts in consumer shopping habits, which we believe will increase the total available market opportunity for Etsy
- Strong second quarter trends extended through July.
Challenges Ahead
- Uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic.
- Limited visibility for the fourth quarter, particularly related to macro trends and consumer spending around Holiday.
- The COVID-19 pandemic continues to impact GMS and results of operations in numerous ways that remain volatile and unpredictable
- Fluctuation of quarterly operating results
- Failure to meet publicly announced guidance or other expectations
Revenue & Expenses
Visualization of income flow from segment revenue to net income