Etsy has watched its share price climb 18% following an initial dive after the news of Russia’s invasion of Ukraine came to light.
The company’s better-than-expected results for its fourth quarter showed Etsy made $717 million in revenue, exceeding the $685 million that was expected.
Active buyers also beat analysts predictions, coming in at 96.3 million, a touch higher than the projected 95.6 million.
Revenue growth however slowed to 16% year-on-year during the quarter.
The ecommerce giant said it expects first-quarter revenue to come in between $565 million and $590 million, while Wall Street projected revenue of $630 million.
The company’s chief financial officer Rachel Glaser blamed the company’s weak first-quarter outlook on the tough comparisons made with the pandemic-fuelled ecommerce boom that rocked the sector.
Etsy’s rivals including Shopify, Ebay and Wayfair all experienced a revenue lift during the worst months of the coronavirus pandemic as shopping was moved online.
Glaser said she believes Etsy will be able to keep expanding its business in a post-pandemic world.
“Even without the significant tail winds of stimulus checks and lockdowns, our first quarter 2022 guidance reflects our expectation that we will keep all of the gains made in 2021 — indicating our belief in the durability of the last two years’ growth,” Glaser said.
“Furthermore, assuming stable macroeconomic conditions, we currently expect lower GMS growth year over year in the first half of 2022 and higher GMS growth in the second half, given the more challenging comparisons in the first half.”