Etsy (ETSY) Q4 Earnings: What To Expect

Anthony Lee 2023/02/21 3:11 am EST

Online marketplace Etsy (NASDAQ: ETSY) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Last quarter Etsy reported revenues of $594.4 million, up 11.6% year on year, beating analyst revenue expectations by 5.4%. It was a mixed quarter for the company, with a solid beat of analyst estimates but slow revenue growth. The company reported 94.1 million active buyers, up 5.31% 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 4.81% year on year to $751.6 million, slowing down from the 16.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.

Etsy Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 5.3%.

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 delivered top-line growth of 24.1% year on year, beating analyst estimates by 2.21% and Roku reported revenues up 0.19% year on year, exceeding estimates by 7.99%. Airbnb traded up 9.24% on the results, Roku was up 10.8%. Read our full analysis of Airbnb's results here and Roku's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.8% over the last month. Etsy is down 6.84% during the same time, and is heading into the earnings with analyst price target of $132.5, compared to share price of $129.6.

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.