Esty Inc., the two-sided online marketplace that connects passionate and creative users Q2 results missed sales expectations, according to a press release by Etsy on Thursday.
- The company’s forecast for current-quarter sales was lower than Wall Street’s expectations, indicating a bigger than anticipated slowdown in e-commerce growth.
- Etsy expects third-quarter revenue to come in around $500 million and $525 million, missing Wall Street’s estimates of $527.5 million in sales for the quarter.
- At close to $529 million, Etsy’s second-quarter revenue rose by 23.4% over the last year, over 190% compared to the same period in 2019 pre-pandemic.
- The retention of new buyers and sellers remains a critical factor for the long-term growth potential of the company. Active buyers grew by 50% over the last year to 90.49 million in Q2 but declined to 90.7 million from Q1.
Esty also made a few acquisitions to broaden its reach among domestic and international consumers. Esty shares have risen 13.5% YTD, underperforming the S&P 500’s 17.4% gains.
ETSY up 6.11%.