During the last three months of 2022, Etsy (NASDAQ: ETSY) reported revenue growth of 12.6% to $807 million, which was above the $755 million that Wall Street analysts were expecting. However, diluted earnings per share of $0.77 not only missed analysts' expectations of $0.80, but they were 30.6% lower than the year-ago period. The stock is down about 8% since the Feb. 22 announcement.
But while most investors probably immediately focus on the top and bottom lines, two other important metrics caught my attention about Etsy. Continue reading to find out what they are and what they could mean for the top e-commerce company's prospects.
In the fourth quarter, Etsy's gross merchandise sales (GMS), which is a measure of the entire transaction volume on its various marketplaces, totaled just over $4 billion. During the year, this is generally the strongest three-month period for the business, thanks to the busy holiday shopping season. But that GMS amount was 4% lower than Q4 2021. On a full-year basis, GMS was down 1.3%.
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What These 2 Major Indicators Could Mean for Etsy's Future