Etsy, Inc. ($ETSY) Earnings (Q1 FY22)

 Etsy, Inc. ($ETSY) Earnings and Opinion:


Etsy is a company in the Consumer Cyclical sector and operates in the Internet Retail industry. The company operates an online marketplace that connects sellers to buyers in different regions across the world. Etsy was founded in 2006 and is currently headquartered in Brooklyn, New York. The company was first traded on the stock market in 2015.

Etsy EPS and Revenue (Q1 FY22):

  • EPS of $0.92 beating expectations of $0.76
  • Revenue of $579.27M beating expectations of $574.71M
Etsy Q1 Financial Highlights:
  • Revenue was up 5.2% Y/Y
  • Net income of $86.11M, down 40.1% Y/Y
  • Active sellers up 62.8%
  • Active buyers up 4.2%
Opinion:
Etsy is currently moving lower after reporting earnings after the closing bell rang today. The company was able to beat expectations for both EPS and Revenue by some good margins. They did report a lower Net income compared to the same time last year. They had active sellers up 62.8% and the active buyers were also up by a slim margin. The thing that is really driving the stock lower, is the fact that the outlook was so called "conservative". We are seeing this approach by a lot of companies right now, due to the fact that the economic conditions are so uncertain. A lot of companies set goals that are attainable, and if they aren't in line with what Wall Street has expected from them, it will cause the stock to sink like we are seeing with Etsy. Etsy is currently way off their all-time highs and are moving lower and lower every time I check them. They are trading at two year lows, so I'm hoping they can turn it around soon. The valuation is at lower levels, but is still relatively high. With a P/E ratio around 30 and P/S ratio of around 6. The P/S ratio doesn't seem to be in a bad place, but is still high in my opinion. Personally, I own a small share in this company. I am down a huge percentage at this point, but I have nothing to do but hold. Sure it was probably a bad investment, I had some FOMO when I was first hearing about this stock. I hope they can pick up some steam and start back on their growth track and keep growing the company.

*Information from MacroTrends, Etsy, Google, Yahoo Finance

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