Back to top

Image: Bigstock

Etsy Shares Pop on Big Earnings Beat, Revenues Up 21.5%

Read MoreHide Full Article

Etsy Inc. (ETSY - Free Report) just released its third quarter fiscal 2017 financial results, posting earnings of 21 cents per share and revenues of $106.4 million. Currently, ETSY is a Zacks Rank #2 (Buy), and is up 4.5% to $17.92 per share in trading shortly after its earnings report was released.

Etsy:

Beat earnings estimates. The craft-focused e-commerce platform posted diluted earnings of 21 cents per share, soaring past the Zacks Consensus Estimate of 5 cents per share. Net income was $25.8 million for the quarter.

Beat revenue estimates. The company saw revenue figures of $106.4 million, surpassing our consensus estimate of $104.59 million and growing 21.5% year-over-year. This was driven by growth in both Markets and Seller Services revenue.

Markets revenue grew 11.2% year-over-year, driven by growth in transaction fee revenue and, to a lesser extent, growth in listing fee revenue. Seller Services revenue grew 30.6% year-over-year, driven mostly by revenue growth in Etsy Payments and Promoted Listings.

Etsy aid that active sellers grew 10.8% year-over-year, while active buyers increased 16.7% from the prior-year period.

Reported gross merchandise sales (GMS) of $766.4 million for the third quarter, up 13.2%.

"In the third quarter, we executed on our strategic initiatives, accelerated GMS and revenue growth and achieved our highest ever Adjusted EBITDA margin since becoming a publicly-traded company," said Josh Silverman, Etsy, Inc. CEO. "We will continue to make progress on our strategy to own 'special' shopping occasions by delivering a more engaging experience for our buyers, and providing our sellers with the tools they need to compete.”

“Looking ahead, we believe our sharpened focus will enable us to build on our momentum, support our sellers throughout the holiday season, and advance our new mission to keep commerce human,” Silverman continued.

Here’s a graph that looks Etsy’s price, consensus, and EPS surprise:

Etsy, Inc. Price, Consensus and EPS Surprise

Etsy, Inc. Price, Consensus and EPS Surprise | Etsy, Inc. Quote

Etsy, Inc. offers e-commerce services. It provides online and offline marketplaces to buy and sell goods. The company's product include art, home and living, mobile accessories, jewelry, wedding, and others. It operates primarily in Berlin, Germany, Dublin, Ireland, Hudson, New York, London, United Kingdom, Melbourne, Australia, Paris, France, San Francisco, California and Toronto, Canada. Etsy, Inc. is headquartered in Brooklyn, New York.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Etsy, Inc. (ETSY) - free report >>