Online crafts marketplace Etsy this afternoon reported Q1 revenue and profit that topped analysts’ expectations, and an outlook for this quarter’s revenue that was higher as well.
However, Etsy forecast its profit margin may be lower this quarter than last, and Etsy shares sank by 7% in late trading .
CEO Josh Silverman remarked that the “incredible momentum” of the preceding year had continued into the quarter
Added Silverman, “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.”
Revenue in the three months ended in March rose by 142%, year over year, to $550.6 million, yielding a net profit of $1 a share.
Analysts had been modeling $530 million and 92 cents per share.
Etsy’s volume of total goods transacted for on its site, the gross merchandise sales, rose 132.3%, year over year, to $3.14 billion, it said.
Etsy’s “active sellers” rose by 67%, it said to 4.7 million, while buyers rose 90% to 90.6 million.
Non-GAAP profit, reported as adjusted Ebitda, in the quarter rose by 234%, year over year, to $184 million, for an Ebitda margin of 33%, which was an expansion of nine percentage points.
For the current quarter, the company sees revenue of $493 million to $536 million, above consensus for $494 million.
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