Etsy's third-quarter revenue is $636 million, with 6 million new active buyers

It is learned that according to foreign media reports, on November 1, the American handicraft e-commerce platform Etsy released its third-quarter performance report as of September 30. As revenue fell short of analysts' expectations, Etsy's stock price fell more than 4% in after-hours trading.

Here's what Etsy said about its third-quarter results:

Earnings per share: 64 cents, below LSEG (formerly Refinitiv) expectations of 51 cents

Revenue: $636 million, below LSEG's estimate of $641 million

However, Etsy's revenue in the third quarter increased by 7% compared to the same period last year (US$595 million). In addition, Etsy's net profit was US$87.9 million, an increase of US$1.1 billion from the same period last year (net loss of US$963.1 million).

The financial report also showed that in the third quarter of 2023, Etsy's comprehensive GMS (global gross merchandise sales) was US$3 billion, a year-on-year increase of 1.2%; Etsy market GMS was US$2.7 billion, a year-on-year increase of 1.0%.

It is worth mentioning that Etsy's service revenue, including advertising, grew 16% this quarter, which was also the main factor driving Etsy's sales in the previous quarter, up about 21% year-on-year. In addition, the number of active buyers on Etsy increased again, reaching a record high of 92 million. Compared with the same period last year, Etsy added 6 million new buyers.

"There is no doubt that the current macroeconomic environment is extremely challenging for discretionary consumer spending," said Etsy CEO Josh Silverman. "The volatile macro environment will continue to challenge our revenue growth in the fourth quarter."

Looking ahead, Etsy expects a low single-digit year-over-year decline in GMS in the fourth quarter of 2023. However, if economic trends deteriorate, a mid-single-digit year-over-year decline is possible, and if economic trends improve, GMS is likely to be flat compared to the same period last year. In addition, Etsy also expects a post-adjustment EBITDA margin of between 26% and 27%.

Excluding after-hours trading, Etsy's stock price has fallen more than 49% so far this year, while the Nasdaq has fallen more than 20% over the same period. On Wednesday, the stock price hit a 52-week low of $59.27 during intraday trading, but eventually closed at $60.66.

Editor ✎ Nicole/

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