Shares of e-commerce company Etsy were up over 8 percent on Wednesday after-trading hours after the company released its second-quarter earnings which surpassed estimates.
For the second quarter, Etsy reported earnings per share of $0.51 beating the estimate of $0.3, according to Refinitiv. Revenue for the quarter came in at $585 million beating the $556 million that analysts had forecasted, according to Refinitiv.
Etsy’s second-quarter revenue was up more than 10 percent despite the raging macroeconomic conditions. The company’s Chief Financial Officer Rachel Glaser attributed this growth to a rise in Etsy marketplace transaction fees, the addition of Depop and Elo7 to the company’s House of brands portfolio, and the strength of its Etsy Ads product.
The company’s marketplace increased by almost 6 million new buyers. This, the company said is still a meaningfully increased rate when compared to pre-pandemic levels.
The company’s CEO, Josh Silverman, said in a press release, “Our second quarter results once again reflect that Etsy has maintained most of our pandemic gains and that we are able to deliver strong bottom line performance while simultaneously investing in key initiatives.”
The company’s rival Shopify failed to meet estimates and issued weak guidance for the next quarter. Shopify reported a loss of 3 cents per share, adjusted, compared to a profit of 2 cents per share that analysts had expected for the quarter, according to Refinitiv. Second quarter revenue came in at $1.3 billion falling slightly below analysts’ forecast of $1.33 billion, according to Refinitiv.
Shopify also said it expects to generate an adjusted operating loss for the second half of 2022. While the company’s CFO Amy Shapero was speaking on a conference call with analysts, she noted that for the rest of the year, the company plans “to slow hiring to only the most strategic,” adding that Shopify will also reduce spending in “lower priority areas and non-core activities,” as well as target sales and marketing spend on “activities with shorter payback periods.”
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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