Etsy Inc. reported first-quarter revenue that surpassed Wall Street estimates on Tuesday, as the online marketplace for handmade and vintage goods benefited from steady demand despite a challenging economic environment.
Financial Performance
The Brooklyn, New York-based company posted revenue of $648.3 million for the quarter ended March 31, compared with the average analyst estimate of $634.7 million, according to data compiled by Bloomberg. Net income rose to $78.5 million, or $0.62 per share, from $72.1 million, or $0.55 per share, a year earlier. Excluding certain items, earnings were $0.71 per share, beating the $0.66 average estimate.
Key Drivers
Gross merchandise sales, the total value of goods sold on the platform, increased 3.5% to $3.1 billion. Active buyers grew 2.1% to 92.3 million, while active sellers rose 4.3% to 7.8 million. Etsy's marketplace saw particular strength in home decor, craft supplies, and personalized gifts, categories that have remained resilient amid inflation concerns.
"Our results demonstrate the enduring appeal of handmade and vintage products, even as consumers face higher prices for everyday essentials," said CEO Josh Silverman in a statement. "Sellers on our platform continue to innovate and offer unique items that resonate with shoppers seeking meaningful purchases."
Outlook and Strategy
For the second quarter, Etsy forecast revenue between $640 million and $660 million, with the midpoint slightly above analyst expectations of $648 million. The company also announced plans to invest in artificial intelligence tools to improve search and personalization, as well as expand its advertising services for sellers.
Etsy shares rose 4.2% in after-hours trading following the earnings release. The stock has gained 12% this year, outpacing the broader market.
