Etsy Inc (NASDAQ: ETSY) on Wednesday reported market-beating results for its fiscal Q1. Shares still tanked nearly 15% in extended trading on disappointing guidance for the current quarter.
Etsy Q1 earnings snapshot
Earned 60 cents a share in the first quarter versus the year-ago figure of $1.0.Revenue went up 5% YoY to $579.3 million, as per the earnings press release.FactSet consensus was for 56 cents of EPS on $576 million in revenue.Repurchased $63 million worth of its stock in the recent fiscal quarter.About 7 million new buyers joined the Etsy marketplace in Q1.Consolidated GMS noted a 3.5% increase on a year-over-year basis.Had $1.0 billion in cash, cash equivalents, and investments at the end of Q1.
Etsy attributed the decline in net income to higher expenses as total employee headcount went up roughly 71% YoY in the first quarter. The stock is now down over 50% for the year.
Future outlook and CFO’s remarks
According to Etsy, inflation will likely hit its financial performance in Q2. It forecasts revenue to fall between $540 million and $590 million in the current quarter on up to $3.2 billion of gross merchandise sales. The COVID-driven surge in online shopping is also settling down that will further weigh on results, the company added.
In comparison, experts had forecast $627 million in revenue and $3.37 billion of GMS. In the earnings press release, CFO Rachel Glaser said:
In the current macroeconomic environment, consumers have less disposable income and many more places to spend it. While this creates a short-term headwind, we have very strong conviction in the long-term growth potential of our business and remain focused on delivering profitable growth.
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