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Sep 30, 2020
Etsy Q3 2020 Earnings Report
Etsy's GMS and revenue experienced substantial growth, driven by focused execution and strong brand engagement.
Key Takeaways
Etsy, Inc. reported a strong third quarter in 2020, with significant growth in consolidated GMS and revenue, increasing by 119% and 128% respectively. The company's performance was driven by increased buyer retention and frequency, as well as successful investments in product and marketing.
Consolidated GMS increased by 119% year-over-year.
Revenue grew by 128% compared to the previous year.
Active buyers increased by 55.4% year-over-year.
Net income saw a substantial increase of 520% 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 fourth quarter of 2020, expecting continued growth in GMS and revenue.
Positive Outlook
- GMS year-over-year growth is expected to be between 65% and 85%.
- Revenue year-over-year growth is projected to be between 70% and 90%.
- Adjusted EBITDA margin is anticipated to be between 24% and 27%.
- Investments in technology, marketing, product, and people are expected to yield near and long-term benefits.
- October GMS growth trends for both Etsy and Reverb have been similar to September.
Challenges Ahead
- 2021 is extremely hard to predict
- The company will be lapping enormous 2020 growth.
- Guidance assumes the midpoint of the revenue guidance.
- Uncertain impacts that the COVID-19 pandemic may have on our business
- Changes in overall level of consumer spending and volatility in the global economy
Revenue & Expenses
Visualization of income flow from segment revenue to net income