Etsy Plummets On Revenue Guidance

Etsy Plummets On Revenue Guidance

Photo: Kelly Sikkema on Unsplash

Online marketplace Etsy Inc ETSY reported second-quarter earnings after hours Wednesday.

What Happened: Etsy reported second-quarter revenue of $528.9 million, up 23.4% year-over-year. The revenue figure beat the street consensus of $524.8 million.

The company reported quarterly earnings per share of 68 cents, beating estimates by a nickel.

Etsy’s second-quarter gross merchandise sales were $3 billion, up 13% year-over-year.

The company added 8 million new buyers in the quarter and saw 11.9 million total new and reactivated (over one year inactive) accounts.

Habitual customers who make six or more purchases in a 12-month period were up 115% year-over-year and represent the company’s fastest-growing segment.

What’s Next: Etsy is guiding for third-quarter revenue to come in a range of $500 million to $525 million. The revenue guidance represents year-over-year growth of 13.5% at the mid-point of the range.

The street was estimating revenue to be $524.9 million in the third quarter.

The company’s third-quarter guidance for gross merchandise sales of $2.9 billion to $3.0 billion represents year-over-year growth of 13.5%, but would be down from the second quarter.

Etsy is not issuing guidance for the full fiscal year. The weaker revenue guidance could show the company’s growth is slowing down and lead to analyst downgrades Thursday.

ETSY Price Action: After closing up 6%, Etsy shares are down 13% to $175.85 in after-hours trading.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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