Loading...
•
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.
Revenue by Segment
Revenue by Geographic Location
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
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
Loading earnings performance data...
Loading earnings reaction data...