Etsy Stock Falls After-Hours On Q2 Earnings: What's Going On

Etsy, Inc. ETSY shares are trading lower in Wednesday's after-hours session following the company's second-quarter earnings. Find out what's going on.

What Happened: Etsy reported quarterly earnings of $0.45 per share, which beat the analyst consensus estimate of $0.41, an 11.76% decrease over earnings of $0.51 per share from last year. The company reported quarterly sales of $628.88 million, which beat the analyst consensus estimate of $621.87 million, a 7.48% increase over sales of $585.13 million in the same period last year.

Consolidated GMS was largely flat at $3.0 billion, down 0.6% year-over-year and down 0.4% on a currency-neutral basis. Etsy marketplace GMS was $2.6 billion, down 0.7% year-over-year and down 0.4% on a currency-neutral basis.

The company issued guidance for the third quarter of 2023, with GMS between $2.95 billion and $3.10 billion and revenue between $610 million and $645 million, versus a consensus of $631.04M.

"The Etsy marketplace's active buyers reached an all-time high in the second quarter, signaling the relevance of our brand and our ability to create opportunities for our sellers. This growth in buyers helped our core marketplace return to year-over-year GMS growth in May and June, and we are pleased to see GMS growth continue into the beginning of the third quarter," said Josh Silverman, Etsy, Inc. CEO.

"We believe we can unlock significant growth opportunities by making Etsy a more organized, curated, and reliable place to shop, and we are aligning our investments and efforts with initiatives that move us toward this vision. Our teams are working with speed and agility to execute on our ambitious roadmap and continue serving our global community."

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ETSY Price Action: ETSY shares were down 5.59% after hours at $90.70 at the time of publication, according to Benzinga Pro.

Image by Mohamed Hassan from Pixabay