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Etsy Reports 2nd Quarter 2021 Financial Results

Etsy
Etsy Reports 2nd Quarter 2021 Financial Results

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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

4 thoughts on “Etsy Reports 2nd Quarter 2021 Financial Results”

  1. Jee Whiz Beave !
    23%…….
    Coincidentally, that’s the SAME amount they took from me on Every Sale with that new off site advertising scheme.
    Guess they’ve hit the Wall.

    1. EXACTLY! Also this new Star Seller programm is poorly designed and for sellers unmotivating. Why should I as a seller meet certain minimum criteria at all? It is MY business and MY responsibility to make the customer happy. Etsy changes to an autograt, wants to control everything and puts itself above the customer, it is unbearable. For me, only the reviews from my customers are meaningful, everything else is interference on the part of Etsy.
      On what basis does Etsy want to rate anything? I.e. I often write private emails with my customers that are certainly not answered within 24 hours, so I will get a bad rating ..?

  2. Etsy’s stock price took a hit when Pinterest announced their dismal earnings report, this past week, as analysts believe consumers are not currently into the “craft scene”, as Etsy is considered a part of that “craft” group…. Etsy stock price took a hit when Pinterest reported.
    Etsy delivered great earnings for Q2, HOWEVER, warns that this current quarter is slow… Etsy’s stock price took another hit, today. BEWARE TO SELLERS….there is a sign that the more transmissible Covid variant, (Delta), is squashing consumer spending and consumer confidence. The “stay at home”, e-commerce play as seen this past year by the consumer, has come to an end. Etsy will do whatever they need to do, to increase traffic to their site.

    1. Then Etsy better start playing nice.
      My stuff won’t be there to attract people anymore.
      I was one of the Largest attractions to Etsy.

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