By Dhirendra Tripathi
Investing.com – Etsy stock (NASDAQ:ETSY) soared more than 14% Thursday as the online place for craft and vintage items reported third-quarter sales and profit that were ahead of estimates.
Even as the platform company suggested growth will be hard to sustain, traders chose to look at the momentum it carried in the third quarter. Chief Executive Officer Josh Silverman said buyers who had “found’ it during the pandemic are “sticking with us."
Gross merchandise sales, the total value of goods sold on the company’s marketplaces, increased 18% to $3.1 billion. Growth in non-mask GMS (NYSE:GMS) was even higher, at 24%. GMS per active buyer jumped more than 20%, to $132, in July through September.
Etsy said active sellers rose to 7.46 million while active buyers jumped to about 96 million.
Supply chain issues and labor and material shortages seemed to have left little impact on the company, unlike the blow they dealt to other retailers, offline or online.
The company is now guiding for GMS of $4 billion at the midpoint in the ongoing quarter, up 12% on-year. Revenue is projected to come in at $675 million, 10% more than last time’s quarter.
According to Silverman, the company is now moving in a different direction, straddling the commoditized marketplaces -- for the Etsy marketplace -- as well as its full ‘House of Brands’ — Reverb, Depop, and Elo7.
Etsy acquired Gen-Z thrift app Depop for $1.6 billion and Elo7, a Brazilian-based marketplace, for $217 million, both deals happening in July. The former is the 10th-most visited shopping site among Gen Z in the U.S., Etsy said at the time of the deal.
Depop and Elo7 will run as independent brands along with Reverb, the company’s online music marketplace.