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Mar 31, 2020
Etsy Q1 2020 Earnings Report
Etsy demonstrated resilience amidst the global crisis, with GMS and revenue growing year-over-year.
Key Takeaways
Etsy reported a 32.2% increase in consolidated GMS and a 34.7% increase in revenue year-over-year. The company's marketplace model allowed it to respond rapidly to changing conditions, resulting in solid profitability for the quarter, despite a decline in net income due to foreign exchange losses.
Etsy's GMS grew by 32.2% year-over-year, including Reverb's GMS of $168.3 million.
Revenue increased by 34.7% year-over-year, driven by growth in both Marketplace and Services revenue.
Active buyers increased by 16.4% year-over-year, and active sellers grew by 26.4% year-over-year.
Etsy quickly adapted to the COVID-19 pandemic by forming a task force, transitioning to remote work, and supporting its seller community.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Etsy anticipates that the recent surge in demand is likely to ease, but GMS strength in April will support strong top-line growth for the second quarter. They will continue to manage spending while investing in key initiatives for long-term growth.
Positive Outlook
- GMS Year-Over-Year Growth 80-100%
- GMS ~$2.0B - $2.2B
- Revenue Year-Over-Year Growth 70-90%
- Revenue ~$310M - $340M
- Adjusted EBITDA Margin 23-27%
Challenges Ahead
- It is quite challenging for us to forecast, even in the near term, given the extreme shifts in demand we have seen over the past eight weeks.
- recent surge in demand is likely to ease
- The combination of one time investments to support our sellers and communities totaled approximately $11-13 million, the majority of which will be incurred in the second quarter of 2020.
- macro dynamics
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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