Etsy grew revenue 23% in the 2nd quarter of 2021, though in comparison it grew Gross Merchandise Sales 13%, it reported on Wednesday.
An excerpt of the company’s financial press release follows.
Etsy, Inc. Reports Second Quarter 2021 Results
Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its second quarter ended June 30, 2021, including the following highlights:
Consolidated GMS was $3.0 billion, up 13.1% year-over-year; while Etsy marketplace GMS was $2.8 billion, up 14.2% year-over-year.
GMS per active buyer for the Etsy marketplace on a trailing twelve month basis grew 22% year-over-year.
GMS from paid channels was 19% of overall GMS, decreasing 200 basis points compared to the second quarter of 2020.
Consolidated revenue was $528.9 million, up 23.4% versus the second quarter of 2020, with a take rate (i.e., Consolidated revenue divided by Consolidated GMS) of 17.4%.
Net income was $98.3 million, up 1.9% year-over-year, with diluted earnings per share of $0.68.
Non-GAAP Adjusted EBITDA was $139.5 million, with Non-GAAP Adjusted EBITDA margin (i.e., Non-GAAP Adjusted EBITDA divided by Consolidated revenue) of 26%, down 900 basis points compared to the second quarter of 2020, as the Company invested in the business.
We ended the second quarter with $2.5 billion in cash, cash equivalents, and short-term investments. In early July Etsy completed the acquisitions of Depop and Elo7 for $1.625 billion and $217 million, respectively, both consisting primarily of cash.
“Etsy’s second quarter 2021 performance is quite remarkable when viewed in context of how dramatically the world changed during the year-ago period,” said Josh Silverman, Etsy, Inc. CEO. “It is deeply gratifying to me and our entire team that we are able to report strong year-over-year growth, with GMS and revenue up approximately 13% and 23% respectively. In fact, excluding facemasks, which were an important driver of the prior year period, second quarter GMS for the Etsy marketplace increased 31%. We’re demonstrating just how many purchase occasions Etsy sellers can meet in truly delightful ways, attracting millions of new buyers and engaging our customers more than ever before. We’re seeing measurable results from deepened investments in our ‘Right to Win’ strategy, which provides a clear roadmap for product and marketing investments to make it easier to shop on Etsy, build top of mind awareness, and solidify buyer trust.”
“In the second quarter we also announced two strategic acquisitions, both completed in July,” continued Mr. Silverman. “Depop and Elo7 further extend our total available market opportunities in resale, a large and fast growing apparel segment, and in Brazil, Latin America’s largest e-commerce market. In addition to driving growth in our core Etsy.com marketplace, we are now focusing on integrating these exciting businesses into our ‘House of Brands.'”
“Underlying growth and buyer cohort trends in our core Etsy marketplace remain encouraging as the world reopens and consumer spending patterns shift,” said Rachel Glaser, Etsy, Inc. Chief Financial Officer. “For example, despite a decline in new buyer growth, which we anticipated as we emerge from the pandemic, in the second quarter we still added 8 million new buyers to the Etsy marketplace – nearly double the number of new buyers acquired in the second quarter of 2019. Furthermore, GMS per active buyer on a trailing twelve month basis was up 22% as compared to the second quarter of 2020, another record high for this important metric. We’re also leveraging our strong financial position to invest in people, product, marketing, and infrastructure to support future growth. We believe our capital light business model will enable us to make these investments while continuing to deliver healthy levels of adjusted EBITDA.”
You can find the full press release and presentation on the Etsy Investor Relations website.