Revenue up 23.7%
Etsy (ETSY) reported 4Q17 results on February 27, 2018. Revenue came in at $136.3 million, up 23.7% on a YoY (year-over-year) basis and $132.6 million above analyst estimates.
The top line was driven by a strong performance over the holiday season. Driven by strategic initiatives, management expects 2018 revenue to grow in the range of 21% to 23%, while GMS (gross merchandise sales) is expected to be up 14% to 16% on a YoY basis.
4Q17 in detail
Segment-wise, Marketplace and Seller Services revenues rose 15.6% and 33.3%, respectively. Marketplace revenue was primarily driven by higher transaction fees, while Seller Services’ revenue benefitted from growth in Etsy payments. The company’s GMS was up 17.8% to $1.0 billion due to the higher number of active buyers and sellers and the launch of new tools and features like scarcity badges and popular selling item badges.
Moreover, the company added it was the first time that it achieved a quarterly GMS of $1 billion, driven in part by growth in international markets. International GMS was up 300 basis points to 33% in 4Q17. At the end of 4Q17, the company had 33.3 million active buyers and 1.9 million active sellers, YoY increases of 16.8% and 10.6%, respectively.
Mobile continues to be the biggest catalyst
Mobile visits (web and app) rose 67%, a rise of 200 basis points on a YoY basis. Mobile web visits represented 46% of overall visits to the site. Mobile visits were up 27% YoY and accounted for 52% of the overall GMS in 4Q17. Mobile conversion rates were also healthy in 4Q17, but mobile app conversion rates were relatively soft.
For 4Q17, Shopify (SHOP) reported revenue of $222.8 million, up 71% and much better than the analyst consensus estimate of $209.3 million. The company’s performance over the holiday season was strong with $1 billion in GMV earned over a span of four days from Black Friday to Cyber Monday.
For 4Q17, Wayfair (W) saw a 46.2% increase in revenue to $1.4 billion, which easily topped analysts’ estimate of $1.4 billion. The company benefited from expansion in international markets as well as a higher number of active customers in the Direct Retail business.