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Wed May 4 2022 15:50:49

Etsy GMS Down 2 Percent in First Quarter from a Year Ago

By: Ina Steiner

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Etsy marketplace Gross Merchandise Sales (GMS) was down 2% in the first quarter, year-over-year. It added 7 million new buyers to the Etsy marketplace during the quarter.

Consolidated GMS (Etsy also owns Reverb, Depop, and Elo7) was up 3.5% in the quarter, year-over-year.

The company said in today's press release announcing earnings: "In addition to comparing to very high growth in the prior year period, Etsy marketplace GMS performance was impacted by headwinds related to consumer discretionary spending, continued reopenings, and geopolitical events."

Additional highlights provided in the press release included the following:

- Non-U.S. GMS for the Etsy marketplace was 45% of overall GMS, and increased 5% year-over-year on a currency-neutral basis

- Consolidated revenue was $579.3 million, up 5.2% versus the first quarter of 2021, with a take rate (i.e., Consolidated revenue divided by Consolidated GMS) of 17.8%.

- Net income was $86.1 million, down 40.1% year-over-year, with diluted earnings per share of $0.60. The decline in net income was primarily due to increased employee compensation-related expenses, as total employee headcount increased approximately 71% year-over-year, which includes increased headcount from the acquisitions of Depop and Elo7.

- Non-GAAP Adjusted EBITDA was $159.2 million, with Non-GAAP Adjusted EBITDA margin (i.e., Non-GAAP Adjusted EBITDA divided by consolidated revenue) of 27.5%, down 600 basis points compared to the first quarter of 2021.

- Etsy ended the first quarter with $1.0 billion in cash and cash equivalents and short- and long-term investments. Under Etsy's stock repurchase program, during the first quarter of 2022 Etsy repurchased an aggregate of approximately $63 million, or 420,398 shares, of its common stock.

Etsy CEO Josh Silverman was quoted in today's earnings press release:

"Despite continued uncertainty and macroeconomic headwinds, Etsy continues to rise to the occasion to deliver solid results that show us maintaining most of the gains reported during the extremely strong year-ago period. We kicked off 2022 with product and marketing investments aligned with our 'Right to Win,' with a keen focus on delivering value to our sellers by attracting new buyers to Etsy and increasing buyer purchase frequency. In addition, we are particularly proud of our efforts to support our community in Ukraine through a combination of efforts in keeping with our core mission and fundamental values."

The full press release including guidance and charts is available on PR Newswire.

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Perminate Link for Etsy GMS Down 2 Percent in First Quarter from a Year Ago   Etsy GMS Down 2 Percent in First Quarter from a Year Ago

by: LDWCallsOut This user has validated their user name.

Wed May 4 16:38:05 2022

The ''geopolitical events'' impacting business on Etsy are the ongoing lockdowns in China due to COVID.  Reports dated today say that lockdown areas include those involved with 80 percent of exports.  While that may include supplies used by artisans and crafting supply shops on Etsy, a majority of items listed on Etsy are new mass manufactured ''handmade'' and fake dated ''vintage'' coming from Asian factories.

I've never seen any evidence that Etsy had enough Russian and Ukrainian owned shops to have a major impact on sales site-wide.

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by: Shanna This user has validated their user name.

Wed May 4 18:02:23 2022

If you go to the end of the news release it says."I ran out of gas! I got a flat tire! I didn’t have change for cab fare! I lost my tux at the cleaners! I locked my keys in the car! An old friend came in from out of town! Someone stole my car! There was an earthquake! A terrible flood! Locusts! IT WASN’T MY FAULT, I SWEAR TO GOD!"

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This user has validated their user name. by: epuise

Thu May 5 09:02:48 2022

I've CUT my Etsy footprint from 3 distinct merch vintage Shops...
to ONE...
Why ?
The 20% relist fee, the 6.5% on item, postage...
Makes under $20 items no longer profitable.
A year of 20c renewals is $0.80
Add that to the 6.5% on item, on postage...
You can easy hit a take of 14% on net item result.
And, every UNSOLD item, FURTHER reduces profit.
In order to get a boost on Etsy... you need a lot of sales.
It is no longer viable to post cheap items to boost popularity.

Perminate Link for Etsy GMS Down 2 Percent in First Quarter from a Year Ago   Etsy GMS Down 2 Percent in First Quarter from a Year Ago

by: Stone Cutter This user has validated their user name.

Thu May 5 09:37:50 2022

***Wages grow in U.S.***

As the economy reopens, consumers are spending their money in different ways. And what about Wayfair? Wayfair stock took a major tumble as consumers aren’t spending money on their homes as they did during Covid lockdowns.

Etsy has 1 billion in cash, yet, expects their seller base to pay an additional 12% for off-site Ads they didn’t sign up for... what a greedy company!

Etsy should change their name to “Etsy India” or “Etsy China”. As wages grow in the U.S., it won’t be worth the U.S. seller to open a shop as fees are too high and wages elsewhere are better.

Etsy has a TV commercial that says “turn your passion in a business”...yeah, right!

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by: Stone Cutter This user has validated their user name.

Thu May 5 10:42:56 2022

***U.S. Stock Market tumbles***

Etsy took another 16% tumble today trading down to 91. Today’s talk on CNBC is that consumers are spending their money on “services” instead of “goods”. Money is being spent on travel and even with inflation, consumers will spend more to finally get out of the house after 2 years of Covid lockdowns. The U.S. economy has slowed but is still considered strong with strong savings accounts for consumers.  

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by: Stone Cutter This user has validated their user name.

Thu May 5 11:19:01 2022

****More data...Big losses in Nasdaq****

For those who “choose” to believe that Etsy is sliding because they are built from bad management, should think twice. Just heard on CNBC this morning, that since November 2021, stocks that trade under the Nasdaq index have seen $7 trillion dollars in losses.

Etsy too, began to slide in November as the Nasdaq takes ANOTHER 5% plunge, today.  

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This user has validated their user name. by: The End

Fri May 6 10:35:18 2022

Etsy stock has just now hit 2019 territory.
Take the WRECKING BALL to Etsy.
Time for a positive change.

Perminate Link for Etsy GMS Down 2 Percent in First Quarter from a Year Ago   Etsy GMS Down 2 Percent in First Quarter from a Year Ago

by: Stone Cutter This user has validated their user name.

Fri May 6 21:55:07 2022

The pressure is on. Etsy CEO “Gold & Silverman” led Etsy when economic times were good, but can he perform when the economy begins to contract? He’s too much of a salesman without any vision!

Yes, time for a positive change.  



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