ETSY Q4 2020 Earnings

Call Details

• Call Title: Etsy, Inc. Q4 2020 Earnings Call
• Date: February 25, 2021 at 10:00 PM UTC
• Management Team:
  • Deb Wasser (VP 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 2020 was $10.3B, up 106% on a currency-neutral basis.
• Consolidated revenue for 2020 was $1.7B, up 111% year over year, and the company reported an EBITDA margin of approximately 32% for the year.
• Etsy consolidated Q4 GMS grew 118% to $3.6B and Etsy standalone Q4 GMS grew 127% to $3.4B.
• Consolidated Q4 revenue was $617M, up 129% year over year, and adjusted EBITDA for Q4 was nearly $192M.
• Gross margin improved to 76%, which is up 920 basis points year over year.
• Active buyers for the marketplace increased 77% year over year to approximately 81M in Q4.
• Trailing 12-month GMS per active buyer increased 13% year over year.
• Habitual buyers grew 157% year over year in Q4 and reached 6.5M buyers.

Guidance

• Etsy provided only Q1 2021 guidance and did not provide full-year 2021 guidance due to ongoing macro uncertainty.
• Q1 consolidated GMS is estimated at approximately $3.0B, representing growth of about 115% to 125% versus Q1 of last year.
• Q1 revenue guidance is $513M to $536M, representing growth of 125% to 135% versus last year.
• Q1 adjusted EBITDA is guided to $168M to $178M, implying a margin of 32% to 34%.
• Management called out that January's strength benefited from stimulus checks and that February was weaker relative to January without that boost.
• Management cautioned that comping the unusual pandemic lows in late March 2020 and the large face mask sales in 2020 will make year-over-year comparisons volatile.
• Management stated that Q1 may represent the high watermark for 2021 take rate due to seasonality and one-time contributors such as expanded offsite ads and Reverb fee changes.