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Jun 30, 2022
Etsy Q2 2022 Earnings Report
Etsy maintained most of its pandemic gains and delivered strong bottom line performance while investing in key initiatives.
Key Takeaways
Etsy's second quarter results showed a revenue increase of 10.6% year-over-year, driven by the Etsy marketplace transaction fee increase and the addition of Depop and Elo7. Despite facing macroeconomic headwinds, the company maintained profitability and continued to invest in customer experiences and growth initiatives.
Consolidated GMS was $3.0 billion, down 0.4% year-over-year but up 2.6% on a currency neutral basis.
Consolidated revenue was $585.1 million, up 10.6% versus the second quarter of 2021.
Net income was $73.1 million, down 25.6% year-over-year, with diluted earnings per share of $0.51.
Non-GAAP Adjusted EBITDA was $162.7 million, with Non-GAAP Adjusted EBITDA margin of 28%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Etsy’s guidance for the third quarter of 2022 is: GMS: $2.8B to $3.0B, Revenue: $540M to $575M, Adjusted EBITDA margin: Approximately 26%.
Positive Outlook
- Focusing on driving great customer experiences.
- Investing with discipline and care.
- Helping the team minimize distractions.
- Driving value for sellers.
- Giving buyers experiences they can't find anywhere else.
Challenges Ahead
- Multiple scenarios possible for the remainder of 2022.
- Guidance assumes currency exchange rates remain unchanged at current levels.
- Macroeconomic uncertainty.
- Political instability.
- Changes in overall levels of consumer spending
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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