Etsy Inc. was among the best performing stocks in the S&P 500 Index during postmarket trading after it reported estimate-beating revenue, underscoring better buyer engagement following platform improvements made amid a broader slowdown in e-commerce spending.
(Bloomberg) — Etsy Inc. was among the best performing stocks in the S&P 500 Index during postmarket trading after it reported estimate-beating revenue, underscoring better buyer engagement following platform improvements made amid a broader slowdown in e-commerce spending.
Shares jumped as much as 11% before paring gains after the close. Etsy is down around 17% this year through Wednesday’s close.
Revenue rose to $640.9 million in the first quarter, from $579.3 million a year earlier, the company said in a statement Wednesday. The company also reported that take rate — the percentage of gross merchandise sales that the company earns as revenue — topped 20% for just the second time in its history, driven by an increased transaction fee implemented in April last year.
“While we remain cautious on the broader macroeconomic climate, we are pleased to see positive trends in our first quarter 2023 buyer data, particularly the return to year-over-year growth in the Etsy marketplace’s active buyer base,” Chief Financial Officer Rachel Glaser said in the statement.
Active buyers in Etsys’ US marketplaces grew for the first time since the fourth quarter of 2021, the company said in its presentation. The company has taken steps to re-engage its buyers through investments in personalization, including exploring generative AI to provide more relevant search results.
The Brooklyn-based online marketplace operator also issued second quarter guidance for revenue, gross merchandise sales and EBITDA margin, all of which were in line with analyst expectations.
Management is scheduled to discuss the results with analysts at 5 p.m. Eastern time.
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