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Etsy (ETSY) Reports Q3: Everything You Need To Know Ahead Of Earnings


Kayode Omotosho /
2023/10/31 3:11 am EDT

Online marketplace Etsy (NASDAQ:ETSY) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter Etsy reported revenues of $628.9 million, up 7.48% year on year, beating analyst revenue expectations by 1.86%. It was a weaker quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. The company reported 96.3 million active buyers, up 2.45% year on year.

Is Etsy buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Etsy's revenue to grow 6.04% year on year to $630.4 million, slowing down from the 11.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 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 3.84%.

Looking at Etsy's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 7.99% year on year, missing analyst estimates by 0.43% and Chegg reported revenue decline of 4.18% year on year, exceeding estimates by 3.76%. Teladoc traded down 4.3% on the results, and Chegg was down 9.6%.

Read our full analysis of Teladoc's results here and Chegg's results here.

The fears around raising interest rates have been putting pressure on tech stocks, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 7.35% over the last month. Etsy is down 5.17% during the same time, and is heading into the earnings with analyst price target of $93.6, compared to share price of $61.31.

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.

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