2022Q4 exceeded expectations! Etsy's revenue exceeded US$800 million!

It is learned that on February 22, Etsy released quarterly financial results that exceeded revenue expectations, mainly driven by the continued demand for bags, party supplies and personalized gifts in its online market, which pushed the company's stock price up by more than 5%.

Etsy’s net revenue for the quarter ended Dec. 31 rose 12.6% to $807.2 million, topping analysts’ expectations of $751.8 million, according to Refinitiv data.

Despite concerns about weakening consumer discretionary spending and a shift in consumer spending toward services rather than goods, Etsy delivered strong revenue growth and better-than-expected gross merchandise sales (GMS).

Etsy is a platform for selling handmade or vintage goods. After the outbreak of the epidemic, people frantically snapped up cloth masks and handicraft supplies on this platform. Driven by the epidemic, sales have skyrocketed and it has been popular with cost-conscious consumers.

“Buyers are coming to us more frequently and spending more on Etsy,” CEO Joshua Silverman said on a post-earnings conference call, adding that the company will continue to foster “spending habits on Etsy.”

Still, GMS, a key industry metric, fell 4% to $4 billion in the reported quarter from a year earlier as spending on discretionary items slowed amid the threat of a recession. For the first quarter of 2023, which ends in March, Etsy expects GMS to be between $2.95 billion and $3.15 billion. Revenue will be between $600 million and $640 million, while analysts expected $621.6 million.

Last week, short seller Citron Research said Etsy had become one of the world's largest platforms for counterfeit goods, causing its stock price to fall more than 8%. In response, Etsy said the platform prohibits the sale of counterfeit goods.

Editor ✎Estella/

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