Free Research Report as Etsy’s Revenue Surged 24.8%; Recorded GAAP Profit

Stock Monitor: Zumiez Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 13, 2018 / If you want access to our free earnings report on Etsy, Inc. (NASDAQ: ETSY), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ETSY. Etsy reported its first quarter and fiscal 2018 operating and financial results on May 08, 2018. The specialty retailer outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Zumiez Inc. (NASDAQ: ZUMZ), which also belongs to the Services sector as the Company Etsy. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Etsy most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended March 31, 2018, Etsy's total revenue was $120.9 million, up 24.8% compared to $96.9 million in Q1 2017, driven by growth in both Marketplace and Services revenue. The Company's reported numbers exceeded analysts' estimates of $120.2 million.

In Q1 2018, Etsy's Marketplace revenue grew 24.7% to $88.0 million on a y-o-y basis, driven by growth in Etsy Payments, which continued to benefit from the requirement that sellers in eligible countries adopt the service. Marketplace revenue also benefited from growth in transaction fee revenue and, to a lesser extent, growth in listing fee revenue. The Company's reported quarter Services revenue grew 35.0% to $32.6 million on a y-o-y basis, driven primarily by revenue growth in Promoted Listings, and, to a lesser extent, Etsy Shipping Labels.

Etsy's gross profit was $79.6 million for Q1 2018, up 27.9% on a y-o-y basis and gross margin was 65.8%, up 160 basis points (bps) compared to 64.2% in the year earlier same quarter. For Q1 2018, Etsy's total operating expenses were $65.8 million, up 2.3% on a y-o-y basis.

Etsy's net income was $13.0 million for Q1 2018, with diluted earnings per share of $0.10, compared to a net loss of $0.4 million and a net loss per share of $0.00 in Q1 2017. The Company's reported quarter net income included interest expense of $3.8 million, including interest related to its Brooklyn headquarters and Etsy's convertible debt offering in March 2018, and a $1.9 million foreign exchange gain, primarily non-cash. The Company's reported numbers exceeded Wall Street's estimates of $0.05 per share.

For Q1 2018, Etsy's non-GAAP adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $26.4 million and grew 171.8% compared to $9.7 million in Q1 2017. The Company's non-GAAP adjusted EBITDA margin was 21.9%, up 1,190 bps compared to the year ago corresponding period. Etsy's adjusted EBITDA performance was driven primarily by revenue growth and increased efficiencies in the Company's operating structure which led to lower employee-related costs.

Operating Results

During Q1 2018, Etsy's Gross Merchandise Sales (GMS) was $861.1 million, up 19.8% compared to GMS of $719.0 million in Q1 2017. The Company's reported quarter GMS growth was supported by 9.4% y-o-y gain in active sellers and 16.9% y-o-y growth in active buyers. On a currency-neutral basis, Etsy's GMS growth was 17.6% versus 15.2% in the year earlier comparable quarter.

For Q1 2018, Etsy's Mobile GMS percentage was approximately 54%, up from approximately 51% in Q1 2017. The Company attributed the increase to increased mobile traffic, in-line with industry trends, and, to a lesser extent, continued improvements in mobile offerings for Etsy's buyers. The Company's international GMS percent of overall GMS was 35% in the reported quarter, up from 32% in the year earlier same quarter. International GMS growth was up approximately 30% on a y-o-y basis and grew faster than overall GMS in the reported quarter, largely due to currency exchange rates as well as growth in markets where Etsy Payments is not offered, global product work and seller outreach.

Cash Matters

Etsy's net cash provided by operating activities was $26.4 million in Q1 2018 compared to $3.3 million in Q1 2017. The increase in net cash provided by operating activities for the reported quarter was mainly driven by revenue growth and lower employee-related costs.

Under the stock repurchase program announced in November 2017, Etsy repurchased an aggregate of approximately $68.6 million, or 2,807,393 shares of its common stock in Q1 2018, including 1,588,500 shares repurchased concurrently with the convertible debt offering.

As of March 31, 2018, Etsy's cash, marketable securities, and short-term investments were $601.4 million.

Stock Performance Snapshot

June 12, 2018 - At Tuesday's closing bell, Etsy's stock rose 3.65%, ending the trading session at $33.22.

Volume traded for the day: 1.27 million shares.

Stock performance in the last month – up 10.70%; previous three-month period – up 18.98%; past twelve-month period – up 150.53%; and year-to-date – up 62.44%

After yesterday's close, Etsy's market cap was at $4.00 billion.

Price to Earnings (P/E) ratio was at 63.40.

The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 0.6% at the end of the session.

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