An exceptional fourth-quarter supported by consolidated GMS and revenue growth of 118% and 129%, respectively, is the reason Etsy Inc. (NASDAQ:ETSY) is trading at all-time highs. Shares of the online retailer rallied by more than 11%, as the company reported fourth-quarter results that topped Wall Street estimates on all metrics.
Record Results
The fantastic results came on Etsy, benefiting millions of buyers, choosing it for their everyday needs. Record gross merchandise sales of $10.3 billion and $1.7 billion in revenue all but affirmed how the platform has become a preferred destination for online shopping.
The impressive results also came on the online retailer investing deeply in technology, which helped it draw more customers and fill more orders. Improved customer experiences on the platform also ensured the company attracted more customers and held on to loyal customers amid stiff competition from another online retailer.
Earnings per share in the quarter totaled $1.08, a share beatings consensus estimates of 59 cents. Similarly, the company reported fourth-quarter revenues of $617.4 million against $516 million expected. Likewise, full-year revenue jumped 111% to $1.7 billion as net income increased 264% to $349
Some of the factors that propelled Etsy to better than expected results include strong performance on non-mask product categories, better than expected macro condition as more people resorted to online shopping. Successful product and marketing initiatives and extended holiday buying season also had an impact on sales growth.
Etsy Outlook
Buoyed by the strong fourth-quarter results, Etsy has already issued impressive guidance for the first quarter. The e-commerce company expects revenue to range between $513 million and $536 million, way ahead of the $383 million expected by analysts. However, the company is yet to issue full-year guidance citing uncertainty on macroeconomic conditions.
The 11% price bump in the aftermath of the stellar fourth-quarter results has again affirmed the stock's bullish momentum. Going by recent price action activity, Etsy looks set to continue powering high given the solid fundamental strengthening investors sentiments in the stock.