2023-08-02 16:32:33 ET
Etsy ( NASDAQ: ETSY ) fell sharply in late trading on Wednesday after setting guidance below expectations.
For Q2 , Etsy's ( ETSY ) consolidated GMS was down 0.6% year-over-year to $3.0B down and was 0.4% lower on a currency-neutral basis. Etsy marketplace GMS was down 0.7 to $2.6B and down 0.4% on a currency-neutral basis. Growth in active buyers accelerated to a 3% pace in the quarter and reached a new all-time high of 91. "We acquired 6 million new buyers, reactivated 21% more buyers than during the prior year period, and retained active buyers at levels above pre-pandemic rates on a trailing twelve month basis," updated the company. On a quarterly basis, active buyer retention trends were noted to have improved both from the prior year and prior quarter.
GMS per active buyer on a trailing twelve month basis for the Etsy marketplace declined 6% Y/Y to $128 in the quarter, but the trend began to stabilize on a sequential basis. Active sellers were up 12.3% to 8.31M at the end of the quarter and active buyers were 2.5% higher to 96.3M.
Total revenue was up 7.5% during the quarter to $628.9M, while net income fell 14% to $61.9M.
Etsy ( ETSY ) ended the quarter with $1.2B in cash and short- and long-term investments.
CFO update: "We gained leverage on marketing, helping to drive very strong adjusted EBITDA margin of 26.4%. We are encouraged to report the second consecutive quarter of positive year-over-year growth in Etsy marketplace active buyers, improvement in GMS trends in some of our top categories, and early signs that both GMS per buyer and habitual buyer trends are stabilizing. At the midpoint, our third quarter consolidated GMS guidance assumes slightly positive year-over-year GMS growth."
Looking ahead, Etsy ( ETSY ) guided for Q3 revenue of $610M to $645M vs. $633M consensus and GMS of $2.95B to $3.10B vs. $3.07B consensus
Shares of Etsy ( ETSY ) traded down 5.48% in after-hours trading to $91.00 after shedding 2.57% during the regular session. The 52-week trading range for Etsy ( ETSY ) is $80.44 to $149.91.
More on Etsy:
- Etsy: Holding Steady, But No Reason To Buy Yet
- Recent options trades
- Growth metrics on Etsy
- Seeking Alpha's Quant Rating for Etsy
For further details see:
Etsy falls after guidance lands sort of expectations