-Etsy up 12% after hours due to blow out earnings, 129% revenue growth for Q4 (vs 70%-90% Guidance) and strong Guidance of 115%-125% revenue growth in Q1. Net was up income up 375%!
Total revenue was $617.4 million, up 128.7% year-over-year, driven by growth in both Marketplace and Services revenue.
• Consolidated take rate (i.e., revenue divided by GMS) was 17.1%, up 80 basis points year-over-year, driven by Etsy Ads, Offsite Ads, and the expansion of Etsy Payments platform.
• Gross profit was $466.6 million, up 160.4% year-over-year, and gross margin was 75.6%, up 920 basis points compared with 66.4% in the fourth quarter of 2019. The increase in gross margin was primarily driven by our shift to Offsite Ads, which drives revenue growth without an equal offset in cost of revenue.
• Total operating expenses were $305.2 million, up 98.0% year-over-year. The increase in operating expenses was driven primarily by growth of our investments in marketing and, to a lesser extent, product development.
• Net income for the fourth quarter of 2020 was $148.5 million, up 374.7% year-over-year, with diluted earnings per share of $1.08.
• Non-GAAP Adjusted EBITDA was $192.0 million. Non-GAAP Adjusted EBITDA margin (i.e., non-GAAP Adjusted
EBITDA divided by revenue) was 31.1%, up 1,090 basis points year-over-year. Adjusted EBITDA performance was driven primarily by revenue growth and increased efficiencies in our operating structure.
• Cash and cash equivalents, short- and long-term investments were $1.7 billion as of December 31, 2020. Under Etsy’s stock repurchase program, during the quarter Etsy repurchased an aggregate of approximately $77.5 million, or618,841 shares, of its common stock. Etsy’s Board of Directors has approved an additional stock repurchase program that will enable the Company to repurchase up to $250 million of its common stock.
• For the full year of 2020 Etsy acquired 61 million new and reactivated buyers, and saw nearly 160% growth in our habitual buyers
Financial Guidance and Outlook
Given the continued uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic, Etsy will currently not issue guidance for the full year 2021, and will continue providing guidance on a quarterly basis until otherwise stated. Below is Etsy’s guidance for consolidated GMS, revenue and Adjusted EBITDA for the first quarter of 2021.
Q1 2021 Guidance
February 25, 2021
GMS ~$2.9B - $3.1B
GMS growth 115% - 125%
Revenue ~$513M - $536M
Revenue growth 125% - 135%
Adjusted EBITDA $168M - $178M
Adjusted EBITDA margin* ~32% - 34%