ETSY Q1 2021 Earnings

Call Details

• Call Title: Etsy, Inc. Q1 2021 Earnings Call
• Date: May 5, 2021 at 9:00 PM UTC
• Management Team:
  • Deb Wasser (Vice President of Investor Relations and ESG Engagement)
  • Josh Silverman (Chief Executive Officer)
  • Rachel Glaser (Chief Financial Officer)
  • Gabe Ratcliffe (Director of Investor Relations)

Call Summary

Financial Performance

• Consolidated GMS grew 132% year over year to $3.1B in Q1 2021.
• Consolidated revenue grew 141% year over year to $551M in Q1 2021.
• Adjusted EBITDA was $184M in Q1 2021, representing an adjusted EBITDA margin of about 33%.
• Consolidated advertising revenue increased 93% year over year, and onsite advertising ex-Google Shopping grew 138% year over year.
• Etsy payments processed 92% of Etsy-standalone GMS in Q1 2021, up from 89% in Q1 2020.
• Cash and short-term investments totaled $1.7B as of March 31, 2021, and the company had an undrawn $200M revolver.

Guidance

• Company provided Q2 2021 guidance for consolidated GMS of approximately $2.8B to $3.1B, implying about 5% to 15% growth versus Q2 2020.
• Revenue guidance for Q2 2021 is $493M to $536M, implying up 15% to 25% versus Q2 2020.
• Adjusted EBITDA guidance for Q2 2021 is $129M to $144M, implying a margin range of 25% to 28%.
• Company capped forward guidance to Q2 only due to volatile macroeconomic conditions and flux in external e-commerce forecasts.
• Management estimated that U.S. government stimulus contributed approximately eight percentage points of GMS growth in Q1 2021 and that stimulus impact has already waned in April and early May.
• Company cautioned that year-over-year growth rates may decelerate through 2021 due to stimulus waning, declining mask sales, and potential reopening headwinds.