Is Etsy Growing Fast Enough For Investors?

Etsy, Inc. (NASDAQ: ETSY) released its third quarter financial results after the markets closed on Wednesdafy. The company said that it had $0.12 in earnings per share (EPS) and $197.95 million in revenue, compared with consensus estimates that called for $0.12 in EPS and $193.89 million in revenue. The same period from last year had $0.15 in EPS and $150.37 million in revenue.

In the third quarter, active buyers and active sellers increased 19.1% and 19.3% year over year, respectively. Overall, Etsy acquired approximately 4.2 million new buyers in the third quarter.

International GMS grew approximately 31% year over year and was 38% of total GMS. U.S. domestic GMS growth accelerated for the second consecutive quarter to nearly 17%.

Looking ahead to the 2019 full year, the company expects to see revenue in the range of $809 million to $815 million with adjusted EBITDA in the range of $179 million to $167 million. Consensus estimates are calling for $0.70 in EPS and $806.56 million in revenue for the full year.

Josh Silverman, Etsy CEO, commented:

During the third quarter we launched several transformative initiatives to serve as the building blocks for long-term, sustainable growth. The core Etsy marketplace continued to perform well, with third quarter GMS and revenue growth of approximately 22% and 28% respectively. Through innovative solutions such as Etsy Ads and our new free shipping initiative, we are continuing to improve the core marketplace for buyers, while enhancing value for sellers and helping them grow. We are just beginning to see the impact of these initiatives, which we believe further our competitive advantages and will have a more meaningful contribution to our results in 2020 and beyond.

Shares of Etsy were last seen down about 16% at $44.15, with a 52-week range of $39.88 to $73.35. The consensus analyst price target is $74.27.