Sales on Etsy’s marketplace grew 12% in the third quarter year-over-year, while consolidated sales across all its platforms grew 18%.
Excerpts from Etsy’s earnings press release follow:
Etsy, Inc. Reports Third Quarter 2021 Results
Reports 18% Increase in Consolidated Year-Over-Year GMS Growth and 18% Year-Over-Year Revenue Growth
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 third quarter ended September 30, 2021, including the following highlights:
- Consolidated GMS was $3.1 billion, up 17.9% year-over-year; while Etsy marketplace GMS was $2.7 billion, up 12.4% year-over-year. Excluding face masks, Etsy marketplace GMS grew 23.7% year-over-year.
- GMS per active buyer for the Etsy marketplace on a trailing twelve month basis grew 20% year-over-year.
- The Etsy marketplace acquired approximately 11.1 million new and reactivated buyers who haven’t purchased in a year or more. While the growth in new buyers declined year-over-year as anticipated, we added approximately 7 million new buyers in the quarter. The number of new buyer quarterly additions continues to be meaningfully elevated when compared to pre-pandemic levels. Habitual buyers, those with 6 or more purchase days and $200 or more in spend in the trailing twelve months, grew 65% year-over-year, continuing to be our fastest growing buyer segment.
- GMS from paid channels was 17% of overall GMS, decreasing 200 basis points compared to the third quarter of 2020.
- Consolidated revenue was $532.4 million, up 17.9% versus the third quarter of 2020.
- Net income was $89.9 million, down 2.0% year-over-year, with diluted earnings per share of $0.62. The decline in net income was due to acquisition-related expenses and non-cash amortization for the acquisitions of Depop and Elo7.
- Non-GAAP Adjusted EBITDA was $174.2 million, with Non-GAAP Adjusted EBITDA margin (i.e., Non-GAAP Adjusted EBITDA divided by consolidated revenue) of 33%, down 100 basis points compared to the third quarter of 2020, as we invested in the business.
- We ended the third quarter with $907.2 million in cash and cash equivalents and short- and long-term investments.
“Last year, Etsy dramatically outperformed e-commerce industry benchmarks, and now, in 2021, we’re lapping that performance with flying colors, reinforcing the significant market share gains we have made,” said Josh Silverman, Etsy, Inc. CEO. “Our excellent third quarter results further reflect that we’re moving the needle on frequency, and that many of the millions of buyers who found, or re-found Etsy during the pandemic are sticking with us, and performing even better than historical cohorts. We are also making great progress integrating our newest brands, Depop and Elo7, aligning their investment priorities, as well as Reverb’s, to those areas where we see opportunity for significant value creation.”
“Our strong third quarter revenue of $532 million reflects continued consumer demand and increased purchase frequency on the Etsy marketplace,” said Rachel Glaser, Etsy, Inc. Chief Financial Officer. “We have continued to invest in both product and marketing to drive awareness and increase conversion. The strength of these investments is evident in our third quarter adjusted EBITDA margin of 33%, particularly notable given the integration of our newer marketplaces into our consolidated income statement this quarter.”
See the full press release including charts and guidance on the Etsy Investor Relations website.