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ETSY Q1 2021 Earnings. Should you Buy?

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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 first quarter ended March 31, 2021, including the following highlights:

  • Consolidated revenue was $550.6 million, up 141.5% versus the same period of 2020, with a take rate (i.e., Consolidated revenue divided by Consolidated GMS) of 17.5%.
  • Net income was $143.8 million, up 1,048.1% year-over-year, with diluted earnings per share of $1.00.
  • Non-GAAP Adjusted EBITDA was $184.1 million, with Non-GAAP Adjusted EBITDA margin (i.e., Non-GAAP Adjusted EBITDA divided by Consolidated revenue) of 33%, up 900 basis points compared to the first quarter of 2020.
  • We ended the first quarter with $1.7 billion in cash, cash equivalents, and short-term investments.

“Last year the world took notice of Etsy’s highly differentiated value proposition, and that incredible momentum has continued into the first quarter of 2021,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “We moved the needle by growing our team to deliver an exciting product roadmap aligned with our Right to Win strategy, and are executing a dynamic marketing strategy focused on driving frequency and keeping our buyers engaged. In a time when human connection is so vital, Etsy provides a one-of-a-kind community where sellers are empowered to grow their businesses,  reaching buyers who value finding items that express their unique identity, while putting their money where their heart is.”

  • Consolidated GMS was $3.1 billion, up 132.3% year-over-year; while Etsy marketplace GMS was $2.9 billion, up 144.1% 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 16.3 million new and reactivated buyers who haven’t purchased in a year or more. Habitual buyers, those with 6 or more purchase days and $200 or more in spend in the trailing twelve months, grew 205% year-over-year, our highest ever growth for this buyer segment.
    • GMS from paid channels was 21% of overall GMS, expanding 500 basis points compared to the first quarter of 2020.


CWEB Analyst’s have initiated a BUY Rating for  (NASDAQ: ETSY) and potential upside of $179 in 2021. The fundamentals of the company are to strong and even after the hard hit post pandemic recovery. We believe Q2 will beat expectations due to the solid cash base numbers coming in but user base will be important. If Etsy looses user bases will be important in Q2. Strong user base will indicate positive return on GMS.



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