Etsy stock slid 15% after-hours on disappointing guidance


Etsy stock slid 15% after-hours on Q1 results

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >


Wajeeh Khan

May 4, 2022

Etsy Inc reports better-than-expected results for its fiscal first quarter.

The American eCommerce company says sales will decline in Q2.

Etsy stock slid nearly 15% in after-hours trading on Wednesday.

Etsy Inc (NASDAQ: ETSY) on Wednesday reported market-beating results for its fiscal Q1. Shares still tanked nearly 15% in extended trading on disappointing guidance for the current quarter.

Etsy Q1 earnings snapshot

Earned 60 cents a share in the first quarter versus the year-ago figure of $1.0.Revenue went up 5% YoY to $579.3 million, as per the earnings press release.FactSet consensus was for 56 cents of EPS on $576 million in revenue.Repurchased $63 million worth of its stock in the recent fiscal quarter.About 7 million new buyers joined the Etsy marketplace in Q1.Consolidated GMS noted a 3.5% increase on a year-over-year basis.Had $1.0 billion in cash, cash equivalents, and investments at the end of Q1.

Etsy attributed the decline in net income to higher expenses as total employee headcount went up roughly 71% YoY in the first quarter. The stock is now down over 50% for the year.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Future outlook and CFO’s remarks

According to Etsy, inflation will likely hit its financial performance in Q2. It forecasts revenue to fall between $540 million and $590 million in the current quarter on up to $3.2 billion of gross merchandise sales. The COVID-driven surge in online shopping is also settling down that will further weigh on results, the company added.

In comparison, experts had forecast $627 million in revenue and $3.37 billion of GMS. In the earnings press release, CFO Rachel Glaser said:

In the current macroeconomic environment, consumers have less disposable income and many more places to spend it. While this creates a short-term headwind, we have very strong conviction in the long-term growth potential of our business and remain focused on delivering profitable growth.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,


68% of retail CFD accounts lose money

Visit site


North America


Stocks & Shares



Generated by Feedzy