2023-05-03 16:25:06 ET
Etsy ( NASDAQ: ETSY ) jumped after reporting gross merchandise sales in Q1 above expectations. The online retailer saw consolidated GMS decline 4.6% year-over-year to $3.1B vs. $3.0B consensus.
Etsy marketplace GMS was down 4.7% to $2.7B and was 2.6% lower on a currency-neutral basis.
The online retailer said the Etsy marketplace grew active buyers by 1% to 89.9M, the first time the metric has grown on a year-over-year basis since Q4 of 2021. On a quarterly basis, retention trends were noted to have improved both from the prior year and the prior quarter.
Total revenue was up 10.6% during the quarter to $640.9M, while net income fell 13.4% to $74.5M.
Etsy ( ETSY ) ended the quarter with $1.1B in cash and short- and long-term investments.
CFO update: "While we remain cautious on the broader macroeconomic climate, we are pleased to see positive trends in our first quarter 2023 buyer data, particularly the return to year-over-year growth in the Etsy marketplace's active buyer base... We believe that our disciplined investment approach can enable above e-commerce industry growth and best-in-class profitability on average and over time."
Looking ahead, Etsy ( ETSY ) guided for Q2 GMS of $2.85B to $3.10B and revenue of $590M to $640M vs. $625M consensus.
Shares of Etsy ( ETSY ) jumped 5.48% in after-hours trading to $104.70 after trimming 0.23% during the regular session. The 52-week trading range for Etsy ( ETSY ) is $67.01 to $149.91.
More on Etsy:
- Etsy: Great Company, Expensive Stock
- Read more breakdowns on Etsy from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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Etsy rallies after positive buyer trends leads to earnings topper