Stock Monitor: Pier 1 Imports Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 18, 2017 / Active-Investors free earnings report on Etsy, Inc. (NASDAQ: ETSY) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=ETSY. Etsy reported its third quarter fiscal 2017 operating results on November 06, 2017. The global marketplace for unique and creative goods outperformed top- and bottom-line expectations and reiterated its full-year 2017 forecast. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
For its third quarter ended September 30, 2017, Etsy's total revenue surged 21.5% $106.38 million on a y-o-y basis compared to $87.56 million in Q3 2016, driven by growth in both Markets and Seller Services revenue. The Company's revenue numbers exceeded analysts' estimates of $104.6 million.
During Q3 2017, Etsy's Markets revenue grew 11.2% to $42.41 million on a y-o-y basis, driven by growth in transaction fee revenue and, to a lesser extent, growth in listing fee revenue. Etsy's seller Services revenue jumped 30.6% at $63.37 million on a y-o-y basis in the reported quarter, driven primarily by revenue growth in Etsy Payments and Promoted Listings, and represented 60% of total revenue.
For Q3 2017, Etsy's gross profit was $70.0 million, up 20.2% on a y-o-y basis and gross margin was 65.8%, down 70 bps compared to 66.5% in Q3 2016. The Company's total operating expenses were $62.6 million in the reported quarter, up 12.6% on a y-o-y basis.
Etsy reported net income for Q3 2017 of $25.8 million, with diluted earnings per share of $0.21, compared to a net loss of $2.4 million and a net loss per share of $0.02 in Q3 2016. The Company's reported quarter net income included an income tax benefit of $12.6 million, an $8.1 million foreign exchange gain, and $2.4 million in interest expense associated with the build-to-suit lease accounting related to Etsy's new headquarters. Etsy's earnings beat Wall Street's estimates of $0.05 per share.
For Q3 2017, Etsy's non-GAAP adjusted EBITDA soared 74.4% on y-o-y basis to $22.8 million. The Company's non-GAAP adjusted EBITDA margin was 21.4%, up 650 bps y-o-y. Etsy's non-GAAP adjusted EBITDA performance was driven primarily by revenue growth and lower employee-related expenses mainly due to the headcount reductions in May and June 2017.
For Q3 2017, Etsy's gross merchandise sales (GMS) jumped 13.2% to $766.4 million on a y-o-y basis. The Company's GMS growth accelerated by 140 bps on a q-o-q basis, following several successful launches of new features and tools. At the end of the reported quarter, Etsy had 32 million asset buyers, up 17% on a y-o-y basis and over 1.9 million active sellers, up 11% compared to the year-ago same period.
During Q3 2017, Etsy's percent mobile visits was approximately 67% compared to approximately 65% in Q3 2016. The Company's percent mobile GMS was approximately 52% in the reported quarter compared to approximately 49% in the prior year's same quarter. Etsy noted that Mobile web was the largest driver of both overall visit growth and mobile GMS growth. The Company's Mobile web visits were approximately 47% of overall visits and mobile app and mobile web GMS each grew significantly faster than desktop GMS during Q3 2017.
During Q3 2017, Etsy's percent international GMS was approximately 34%, up from approximately 30% in Q3 2016. The Company's net international GMS growth accelerated to approximately 25% y-o-y and grew faster than overall GMS during the reported quarter for the sixth consecutive quarter.
During Q3 2017, Etsy's net cash provided by operating activities was $16.9 million compared to $10.3 million in Q3 2016, primarily driven by revenue growth and savings in employee-related and other costs. The Company's cash, marketable securities, and short-term investments were $310.7 million as of September 30, 2017.
For full-year 2017, Etsy re-affirmed its guidance for GMS revenue and adjusted EBITDA margin. The Company continues to expect GMS growth to be 12% to 14% y-o-y; revenue growth to be 18% to 20% y-o-y; and adjusted EBITDA margin to be 16% to 18%.
Stock Performance Snapshot
December 15, 2017 - At Friday's closing bell, Etsy's stock climbed 1.79%, ending the trading session at $20.50.
Volume traded for the day: 3.10 million shares, which was above the 3-month average volume of 1.93 million shares.
Stock performance in the last month ? up 24.74%; previous three-month period ? up 19.67%; past twelve-month period ? up 63.35%; and year-to-date ? up 74.02%
After last Friday's close, Etsy's market cap was at $2.47 billion.
Price to Earnings (P/E) ratio was at 175.21.
The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 0.7% at the end of the session.
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