ETSY Q1 2020 Earnings

Call Details

• Call Title: Etsy Q1 2020 Earnings Call
• Date: May 6, 2020 at 9:00 PM UTC
• Management Team:
  • Deb Wasser (Vice President of Investor Relations)
  • Josh Silverman (Chief Executive Officer)
  • Rachel Glaser (Chief Financial Officer)
  • Gabe Ratcliffe (Director of Investor Relations)

Call Summary

Financial Performance

• Consolidated GMS for Q1 2020 was $1.4B, up 32% year over year.
• Consolidated revenue for Q1 2020 was $228M, up 35% year over year.
• Adjusted EBITDA for Q1 2020 was approximately $55M, representing a margin of 24%.
• Consolidated take rate expanded 60 basis points sequentially to 16.9% in Q1 2020.
• Advertising revenue grew approximately 70% year over year in Q1 2020, with Google Shopping contributing about $11M.
• Net income for Q1 2020 was $12.5M, and diluted EPS was $0.10, after non-cash foreign exchange losses of $9.3M.

Guidance

• Q2 2020 consolidated GMS is guided to $2.0B to $2.2B, which implies up 80% to 100% versus Q2 2019.
• Q2 2020 revenue is guided to $310M to $340M, which implies up 70% to 90% versus Q2 2019.
• Q2 2020 adjusted EBITDA is guided to $75M to $90M with a margin range of 23% to 27%.
• Guidance assumes partial quarter impact from offsite ads revenue beginning in early May due to a free trial period and a temporary take-rate contraction from delayed fee charges.
• Q2 guidance includes approximately $10M to $12M of one-time seller support costs predominantly incurred in Q2, and Rachel noted these costs represent about 300 basis points of adjusted EBITDA margin at the midpoint.
• No full-year 2020 guidance was provided due to ongoing uncertainty and scenario variability.