Etsy revenues fall short of analysts expectations

Etsy revenues have fallen short of analysts expectations as the pandemic-fuelled ecommerce boom rubs off.

Sales will be around $660 million to $690 million in Q4, which is short of the estimated $691.7 million that analysts predicted, according to data from Bloomberg.

The company’s sales more than doubled last year as consumers turned to the platform to keep their revenue streams in tact.

Etsy also acquired Brazilian marketplace for $217 million as well as Depop for $1.6 billion, the latter being the 10th most visited shopping site among Gen Z consumers in the US.

The ecommerce brand said at the time of the deal. Depop and Elo7 will run as independent brands along with Reverb, the company’s online music marketplace.

READ MORE: The Rise of Etsy: From humble handmade goods to billion dollar marketplace

Q3 revenues increased by 18 per cent to $532 million, beating analysts average estimate of $519 million.

Etsy has managed to largely avoid the global supply chain crisis which has crippled retailers worldwide.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $174.2 million, compared with analysts’ average estimate of $129.8 million.

Net income came to $89.9 million, or 62 cents a share, compared with $91.8 million, or 70 cents, year-on-year.

Gross merchandise sales (GMV), the value of goods sold on the company’s marketplaces, increased by 18 per cent to $3.1 billion, compared with the average estimate of $2.97 billion.

The number of active sellers on the platform rose to 7.46 million while the number of active buyers leapt to around 96 million, compared with analysts’ projections of 5.7 million sellers and 91.8 million buyers.

Click here to sign up to Charged’s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.