In its latest quarter, Etsy saw a rise in revenue driven by higher gross merchandise sales. However, the e-commerce company based in Brooklyn, N.Y. issued a cautionary note regarding its first-quarter performance.
Financial Highlights
- Net Profit: Etsy reported a fourth-quarter net profit of $83.3 million, or 62 cents a share, down from $109.5 million, or 77 cents a share, in the same period last year.
- Revenue: The company’s revenue increased by 4.3% to $842.3 million, surpassing analysts’ expectations of $827.8 million.
- Active Buyers: Etsy reached a record high of 92 million active buyers, marking a 3% increase.
- Gross Merchandise Sales: While gross merchandise sales declined by 0.7% to $4.01 billion, the company remains optimistic about its growth trajectory.
Future Outlook
Etsy anticipates that the first quarter will see a dip in year-over-year growth for both gross merchandise sales and revenue. However, for the rest of the year, the company projects revenue growth to outpace that of gross merchandise sales as it continues to invest in growth initiatives.
It will be interesting to see how Etsy navigates these challenges and capitalizes on its strong user base to drive future success.
