Earnings To Watch: Etsy (ETSY) Reports Q4 Results Tomorrow

Adam Hejl /
2022/02/23 6:39 am EST
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Online marketplace Etsy (NASDAQ: ETSY) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Etsy reported revenues of $532.4 million, up 17.9% year on year, beating analyst revenue expectations by 2.55%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter. The company reported 95.9 million active buyers, up 37.8% year on year.

Is Etsy buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Etsy's revenue to grow 11% year on year to $685.4 million, a significant deceleration from the 128% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.98 per share.

Etsy Total Revenue

The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 9.01%.

Looking at Etsy's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Airbnb (NASDAQ:ABNB) delivered top-line growth of 78.3% year on year, beating analyst estimates by 5.02% and Angi (NASDAQ:ANGI) delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.12%. Airbnb traded up 3.6% on the results, Angi traded down 9.9% on results. Read our full analysis of Airbnb's results here and Angi's results here.

Tech stocks have been under pressure since the end of last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.69% over the last month. Etsy is down 14.4% during the same time, and is heading into the earnings with analyst price target of $240.7, compared to share price of $124.55.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.