ETSY Inc.(ETSY) – New product launches, new customers, new growth

ETSY Inc.(ETSY)(Q2FY23)

Stock performance: ETSY stock gave returns of -24.6% and -37.2% in the period of three months and one year. The stock has a 52-week high of $149.91 and a 52-week low of $62.89. It gave returns of -43.9% and CAGR of -17.5% over a period of three years. It had a 200-day Moving Average of $102.78 and a 50-Day Moving Average of $79.61.

Quarter Performance: In Q2FY23, revenue increased by 7% to $628.9mn, compared to $ 585.1mn in Q2FY22, of which 72.0% consisted of Marketplace revenue and 28.0% consisted of Services revenue.

Guidance: For Q3FY23, ETSY expects its GMS to be in the range of $2.95bn to $3.10bn and revenue to be in the range of $610mn to $645mn. An adj. EBITDA margin in the range of 27% -28% is expected by the company in Q3FY23. The guidance assumes currency exchange rates remain unchanged at current levels. In the guidance, ETSY has assumed that the pending sale of Elo7 is completed during the middle of the third quarter.

Highlights

ETSY has announced an agreement to sell its Brazil-based handmade goods marketplace, Elo7 to Enjoei a Brazilian company, which operates an online marketplace for clothes and furniture. This decision was made because Elo7’s performance wasn’t as good as expected over the past two years due to economic conditions in Brazil, and because it’s a smaller-scale business.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Price Performance

Crispidea Coverage

No of Pages: 41

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