Etsy $ETSY 2Q21 Earnings (on tough comps)ππ»
- Rev $529m +23% βοΈ
- Mktpl Rev $395m +19% βοΈ
- Svcs Rev $133m +38% βοΈ
- Gross Profit $379m +20% βοΈ
- Adj EBITDA $139m -7% βοΈ margin 26% -900bps βοΈ
- Net Income $98m +2% β‘οΈ margin 19% -391bps βοΈ
- Rev $529m +23% βοΈ
- Mktpl Rev $395m +19% βοΈ
- Svcs Rev $133m +38% βοΈ
- Gross Profit $379m +20% βοΈ
- Adj EBITDA $139m -7% βοΈ margin 26% -900bps βοΈ
- Net Income $98m +2% β‘οΈ margin 19% -391bps βοΈ
$ETSY Business Metrics
- GMS $3b +13% βοΈ (high base incl FM)
- Etsy GMS $2.8b +14% βοΈ
- Etsy GMS ex-FM +31% β¬οΈβ
- Face masks (FM) declined to 1.2% of GMV πβ
- Take-rate 17.4% steady β‘οΈ
β‘οΈ GMS ex-Facemasks +31% is actually very solid.
- GMS $3b +13% βοΈ (high base incl FM)
- Etsy GMS $2.8b +14% βοΈ
- Etsy GMS ex-FM +31% β¬οΈβ
- Face masks (FM) declined to 1.2% of GMV πβ
- Take-rate 17.4% steady β‘οΈ
β‘οΈ GMS ex-Facemasks +31% is actually very solid.
Slightly concerned on Flat Buyers Growth QoQ
- QoQ more SellersβοΈ, but Buyers Flat β‘οΈ
- Active Sellers 5.2m +67%YoY +11%QoQ βοΈβ
- Active Buyers 90m +50%YoY -0.2% QoQ β‘οΈ βπ©
- Etsy GMS per buyer +22% βοΈ (less buyers, larger orders)
β‘οΈ Coincides with re-opening, worth watching.
- QoQ more SellersβοΈ, but Buyers Flat β‘οΈ
- Active Sellers 5.2m +67%YoY +11%QoQ βοΈβ
- Active Buyers 90m +50%YoY -0.2% QoQ β‘οΈ βπ©
- Etsy GMS per buyer +22% βοΈ (less buyers, larger orders)
β‘οΈ Coincides with re-opening, worth watching.
β‘οΈ Strength of Habitual Repeat Buyers
ββ¦most valuable cohorts, specifically habitual buyers, which represent on average about 40% of Etsy marketplace GMS and our fastest growing buyer segment.β
ββ¦most valuable cohorts, specifically habitual buyers, which represent on average about 40% of Etsy marketplace GMS and our fastest growing buyer segment.β
β‘οΈ 3Q21 βLowβ Guide
- GMS +5% to +15% β‘οΈβοΈ
- Rev +15% to +25% βοΈβοΈ
- High comps / base effects (vs 3Q20 +116%)
- 11% of GMS in 3Q20 from mask sales
- Comps will be tough still in coming quarters, toughest in 1Q22β¦
- Post 2Q22 could look very differentβ¦
- GMS +5% to +15% β‘οΈβοΈ
- Rev +15% to +25% βοΈβοΈ
- High comps / base effects (vs 3Q20 +116%)
- 11% of GMS in 3Q20 from mask sales
- Comps will be tough still in coming quarters, toughest in 1Q22β¦
- Post 2Q22 could look very differentβ¦
Final Takeaway on $ETSY:
β‘οΈ The investment thesis was never about one-off face-masks / rapid growth, but in a global two-sided online marketplace for unique and creative goods. Yes there will be tough comps near-term, as long as sellers keep growing, buyers &b GMV will return.
β‘οΈ The investment thesis was never about one-off face-masks / rapid growth, but in a global two-sided online marketplace for unique and creative goods. Yes there will be tough comps near-term, as long as sellers keep growing, buyers &b GMV will return.
β’ β’ β’
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