Shares of Etsy soared on Thursday after the popular e-commerce platform published its third quarter earning results, beating Wall Street estimates.
Etsy shares were up more than 15%, closing at $271.27 after the company reported revenue growth that was up 17.9% from a year ago, to $532.4 million. For the fourth quarter, Etsy guided revenue growth of about 10% year-over-year or between $660 and $690 million.
With consumers still flocking to buy pandemic essentials such as handmade face masks, the company added 61 million new and reactivated buyers to its platform in the fourth quarter.
Etsy is an American global online marketplace which has about 1.7 million users who are selling to over 33 million buyers. Its platform enables independent artisans, crafters and collectors to sell their handmade or custom-made products such as clothing, jewelry and accessories, toys, home decor and more.
Honouring Black History Month, Etsy also offers products made exclusively by Black-owned shops.
With the Christmas season fast approaching, Etsy is counting on its extensive Christmas collection to lure more buyers in.
According to Etsy’s CEO Josh Silverman, many buyers who discovered Etsy during the pandemic have remained loyal, and therefore the predicted post-pandemic slowdown has not been as significant as it was initially feared.
“Last year, Etsy dramatically outperformed e-commerce industry benchmarks, and now, in 2021, we’re lapping that performance with flying colors, reinforcing the significant market share gains we have made.” Silverman said.
He added that this holiday season, Etsy anticipates that its highly distributed supply chain with creative entrepreneurs located around the globe is ready to serve the world in ways many others can’t.