Etsy Rises As Vintage Items From Small Sellers Solve Supply Shortages By Investing.com

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© Reuters.

By Dhirendra Tripathi

Investing.com – Shares of Etsy, Inc. (NASDAQ:) soared 17% in premarket trading on Friday after the online marketplace for handmade and vintage items easily beat sales and price estimates. earnings in the fourth quarter.

Consolidated gross merchandise sales (GMS) reached a record $4.2 billion, up more than 16%. CEO Josh Silverman attributed this to the company’s business model that connects buyers and small and large sellers of unique and creative goods. GMS is the total value of goods and services sold on an online platform.

“During the holiday season, our sellers – most one-stop businesses and insulated from widespread supply shortages or complex fulfillment processes – brought the benefits of small-scale purchasing,” he said. said in a statement.

By comparison, large and complex supply chains have troubled major online platforms like Amazon (NASDAQ:), especially in the past year.

Marketplace Etsy acquired about 10 million new buyers in the fourth quarter, while reactivating 6.8 million. Repeat buyers increased by 26%. It closed December at 90 million active buyers.

Several holiday records were set on Black Friday and Cyber ​​Monday, the company said. GMS per active buyer has thus increased by 16% over 12 rolling months. Higher marketing spend has boosted buyer retention and frequency.

The company now expects GMS of $3.3 billion in the middle of its guidance range and revenue of $565-590 million in the current quarter.

Etsy said it optimized Reverb for online searches, which led to a significant increase in Google search traffic. The company had acquired the musical instruments market during the September 2019 quarter.

increased by more than 16% to exceed $717 million. Net income rose about 9% to about $162 million.

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