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