Etsy saw revenues surge nearly 130 per cent during its fourth-quarter blitzing analyst expectations and driving its stock up over five per cent.
Etsy hailed an “exceptional fourth-quarter performance” bringing the total sales across its platform in 2020 to $10.3 billion, driving full-year revenues of $1.7 billion.
In the three months to December 31 Etsy posted revenue growth of 128.7 per cent year-on-year to $617.4 million, over $100 million more than analysts expected.
Gross profits also jumped 160 per cent to $466 million, while gross margins increased 75.6 per cent during the quarter.
Adjusted EBITDA also rose 31.1 per cent to $192 million “driven primarily by revenue growth and increased efficiencies in our operating structure”.
Etsy has solidified its position as a runaway winner of the pandemic, largely driven by a huge influx of merchants using the platform to sell homemade masks.
After initially seeing a sales decline early in the pandemic, Etsy called on its sellers to address the growing PPE supply chain issues and create homemade masks.
This saw an explosion of face mask sales on its platform during the height of the pandemic, and mask sales continued to make up four per cent of Etsy’s total gross merchandise value during the fourth quarter, dropping from 11 per cent in the previous period.
It also helped drive 61 million new or reactivated shoppers to the platform in its final quarter, including a 160 per cent jump in “habitual buyers”.
“2020 was an inflection point in history for e-commerce and for Etsy, with millions of buyers choosing us for their everyday needs as we lived up to our mission to ‘Keep Commerce Human,’” Etsy’s chief executive Josh Silverman said.
“We are particularly gratified that circumstance met preparedness, highlighting the agility of our team and the power of our differentiated strategy.”
“We are just getting started executing on our long-term growth strategy, focused on highly differentiated and defensible competitive advantages within a $1.7 trillion market opportunity.”