Etsy earnings Q2 21, stock plunges on weak guidance

An staff walks past a quilt exhibiting Etsy Inc. signage at the firm’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg by using Getty Pictures

Etsy documented greater-than-predicted next-quarter effects just after the bell Wednesday, but it gave advice for the latest quarter that indicates the pandemic-fueled e-commerce boom might be stalling.

The stock slid as significantly as 14% in extended buying and selling.

Here is how the company did, compared with expectations of analysts surveyed by Refinitiv:

  • Earnings: 68 cents for every share vs. 63 cents for every share anticipated
  • Income: $528.9 million vs. $524.7 million anticipated

Earnings progress slowed to 23.4% calendar year over yr during the quarter. That’s a marked deceleration from modern quarters, when revenue development topped 100% for every of the past four quarters.

The success underscore concerns that the pandemic bump in e-commerce action is fading as vaccinated people devote significantly less on the web and a lot more on vacation and other solutions. Final 7 days, shares of Etsy, eBay and Wayfair were being all dragged down right after Amazon described income and gave a forecast that fell quick of anticipations.

Etsy, which operates an online market recognized for handmade and personalised goods, has been 1 of the largest beneficiaries of the pandemic, with shoppers turning to the website for matters this sort of as facial area masks and residence goods.

“Etsy’s 2nd quarter 2021 general performance is quite remarkable when viewed in context of how dramatically the earth changed during the 12 months-ago time period,” Etsy CEO Josh Silverman mentioned in a statement. “It is deeply gratifying to me and our full crew that we are equipped to report powerful 12 months-about-12 months growth, with GMS and earnings up roughly 13% and 23% respectively. In simple fact, excluding facemasks, which have been an significant driver of the prior year time period, next quarter GMS for the Etsy marketplace improved 31%.”

For the latest quarter, Etsy reported it expects earnings to occur in in between $500 million and $525 million, implying a progress amount of 13.5% calendar year more than 12 months at the midpoint. Analysts surveyed by StreetAccount had been wanting for third-quarter income of $527.5 million.