Etsy ( NASDAQ: ETSY ) shares rose by as much as 8% in Wednesday’s extended session after the company posted stronger than expected quarterly sales
The Brooklyn-based online retailer reported $0.77 in earnings per share for the fourth quarter on $807.2M in revenue. Analysts had expected the company to report $0.80 in earnings per share and $751.65M in revenue for the quarter.
“Despite significant macroeconomic headwinds, we maintained the vast majority of our pandemic gains and delivered double digit revenue growth and excellent profitability for the year,” CEO Josh Silverman said. "We believe our strong and steady performance proves the relevancy of our 'Right to Win' strategy, the focus and investment discipline of our teams, and the resiliency of our business model.”
The company’s take rate also increased sharply to 20%, exceeding the 19.4% consensus. Additionally, 95M active buyers on the platform outpaced expectations by 1M while 7.5M active sellers came just short of the 7.7M consensus estimate.
“We are now nearly three times the size we were pre-pandemic, and we’ve been careful about how we have grown our cost basis to catch up with the size of the business - visible in our sustained profitable growth and strong free cash flow,” CFO Rachel Glaser commented.
Moving forward, the company expects gross merchandise sales in the first quarter between $2.95B and $3.15B, just short of the $3.17B consensus. A revenue forecast of $600M to $640M came in-line with the $621M consensus. Adjusted EBITDA margin was guided to a range between 26% and 27% against a 26.9% analyst expectation.
Shares of Etsy ( ETSY ) rose 4.47% in after hours trading on Wednesday, paring some gains from the pop for the stock directly after the print .
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Etsy stock rises on revenue beat