Etsy, Inc. (NASDAQ: ETSY)
Shares of Etsy rose more than 10% in the after-hours trading session on Monday after the online retailer company surpassed Wall Street analysts’ estimates for both earnings and revenue. Etsy runs a website that focuses on selling vintage items and handmade goods.
The New York-based company said adjusted earnings per share benefited from the release of a valuation allowance in its foreign jurisdictions.
Etsy Earnings & Outlook
Etsy reported fourth-quarter net income of $41.3 million, or $0.32 per share, down from $44.8 million, or $0.36 per share, in the same period last year. Analysts were expecting adjusted earnings of $0.21 per share in the quarter, based on figures compiled by Refinitiv.
The e-commerce platform posted revenue of $200 million, compared with $136.3 million in the prior-year period. Analysts surveyed by Refinitiv had called for fourth-quarter revenue of $194.9 million.
Looking into fiscal 2019, the company is anticipating adjusted earnings of $0.13 per share on revenue of $170.2 million for the current quarter. For the full year, Etsy sees revenue in the region of $779 million to $797 million, above analysts’ expectations of $776.2 million.
Etsy Executive Comments
“By making Etsy a great destination for holiday shopping, we delivered strong fourth quarter results to end an excellent year,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “We kept our focus on improving search and discovery, building trust in the marketplace, expanding our marketing channels, and investing in services that fuel our sellers’ success.”
“Our strong financial performance in the fourth quarter and full year of 2018 reflect the successful execution of our product, engineering, and marketing efforts during the period,” said Rachel Glaser, Etsy, Inc. Chief Financial Officer. “We grew and strengthened our business, returned capital to stockholders, and finished the year in a strong cash position enabling continued growth investments.”
Etsy, Inc. Profile
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers.
It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York. – Yahoo Finance
