Etsy Says New Buyer Additions 'Well-Above' Pre-Pandemic Averages After Upbeat Q3

Etsy Inc ETSY said Wednesday that new buyer acquisition has remained well above where it was before the COVID-19 pandemic.

What Happened: The company said that the number of new buyers touched 6.3 million in the third quarter. New buyers decreased by 10% on a year-over-year basis from 7 million in a similar period in 2021. 

In the second quarter, the e-commerce platform attracted 6.4 million new buyers. 

Etsy considers buyers to be new if they use a unique email address that has never been used on its marketplace.

Source: Etsy Q3 2022 Financial Results Presentation

New buyers remained above the pre-pandemic averages, according to the presentation. The number of new buyers pre-COVID was calculated as the average between the first quarter of 2017 and the fourth quarter of 2019.

The Brooklyn-based company said it is a "community" of 90 million buyers. The company listed 5.1 million "reactivated buyers." Last year in a similar period, reactivated buyers came at 4.1 million.

Etsy describes reactivated buyers as shoppers who didn't make a purchase in a year and then returned to the platform to buy.

See Also: How To Buy Stocks Online: Step-By-Step Guide 

Why It Matters: Etsy's third-quarter revenue rose 11.7% year-over-year to $594.47 million, according to the third-quarter results.

The company's third-quarter earnings per share came in at $0.58, above the $0.37 Street estimate, according to data from Benzinga. 

The e-commerce firm expects fourth-quarter revenue to range between $700 million and $780 million compared with average estimates of $742.04 million.

Price Action: On Wednesday, Etsy shares shot up 10.5% in extended trading to $96.70 after closing 4.25% lower at $87.54 in the regular session, according to Benzinga Pro data. 

Read Next: Amazon Stock Plunges After Q3 Earnings: The Details On Revenue Miss, EPS Beat, New Prime Video Content, Disappointing Guidance

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!