Stock Monitor: FTD Cos. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 11, 2018 / Active-Investors.com has just released a free earnings report on Etsy, Inc. (NASDAQ: ETSY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ETSY. The Company reported its fourth quarter fiscal 2017 operating and financial results on February 27, 2018. The online crafts marketplace outperformed top- and bottom-line expectations, and crossed gross merchandise sales of $1.0 billion for the first time in a quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for FTD Cos. Inc. (NASDAQ: FTD), which also belongs to the Services sector as the Company Etsy. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Etsy most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=ETSY
Earnings Highlights and Summary
For the quarter ended December 31, 2017, Etsy's total revenues surged 23.6% to $136.3 million compared to $110.21 million in Q4 2016, driven by a growth in both Marketplace and Seller Services revenues. The Company's revenue numbers beat analysts' estimates of $132.6 million.
During Q4 2017, Etsy's Marketplace revenues advanced 15.6% to $54.25 million on a y-o-y basis, primarily due to a growth in transaction fee revenues and to a lesser extent, due to a growth in listing fee revenues. The Company's Seller Services revenues rose 33.3% to $82.32 million on a y-o-y basis, driven primarily by a revenue growth in Etsy Payments. The Company's Seller Services revenues also benefited from a revenue growth from Promoted Listings, and to a lesser extent, from Shipping Labels, as well as a modest contribution from Pattern by Etsy.
Etsy's gross profit was $92.0 million in Q4 2017, up 25.7% on a y-o-y basis, and its gross margin was 67.5%, up 110 basis points (bps) compared to 66.4% in the prior year's same quarter. The Company's gross profit grew faster than revenues in Q4 2017, due to lower net fees from its payment processors.
Etsy's total operating expenses were $73.8 million in Q4 2017, representing 54.1% of revenues; up 5.7% on a y-o-y basis compared to $69.8 million in Q4 2016, representing 63.3% of revenues. The decrease in operating expenses as a percentage of revenues was primarily due to the decrease in employee-related expenses, related to the impact of the Company's actions to streamline its cost structure.
For Q4 2017, Etsy reported a net income of $44.75 million, or $0.36 per diluted share, compared to a net loss of $21.38 million, or $0.19 loss per diluted share, in Q4 2016. The Company's net income for the reported quarter included a tax benefit of $26.5 million, primarily due to the impact of the US Tax Cuts and Jobs Act 2017 (TCJA); interest expenses of $2.2 million associated with the build-to-suit lease accounting related to Etsy's new headquarters; and a foreign exchange gain of $2.2 million, primarily non-cash. The Company's earnings numbers beat Wall Street's estimates of $0.10 per share.
Etsy recorded adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $34.8 million in Q4 2017, up 127.9% on a y-o-y basis. The Company's non-GAAP adjusted EBITDA margin was 25.6% in the reported quarter, up 11.7% on a y-o-y basis. Etsy's improved adjusted EBITDA performance was driven primarily by revenue growth and increased efficiencies in the Company's operating structure which led to lower employee-related costs.
Operating Results
During Q4 2017, Etsy's gross merchandise sales (GMS) was $1.0 billion, up 17.8% compared to $865.2 million in Q4 2016. This was the first quarter that Etsy achieved $1.0 billion in GMS. The Company's GMS growth was supported by a growth in active sellers of 10.6% to 1.93 million y-o-y, and a growth in active buyers of 16.8% to 33.36 million y-o-y.
During Q4 2017, Etsy's aggregate conversion rate increased on a y-o-y basis, reversing a trend the Company had observed in the past two quarters. The Company's percent mobile visits were approximately 67% in Q4 2017 compared to approximately 65% in Q4 2016. Etsy's percent mobile GMS was approximately 52% in the reported quarter compared to approximately 49% in the prior year's corresponding quarter. Etsy reported that mobile web visits were approximately 46% of overall visits, and mobile app and mobile web GMS each grew significantly faster than desktop GMS in Q4 2017.
For Q4 2017, Etsy's percent international GMS was 33%, up from 30% in Q4 2016. International GMS growth accelerated to approximately 28% on a y-o-y basis, and grew faster than overall GMS in the reported quarter for the seventh consecutive quarter. The Company's US GMS growth gained 13% on a y-o-y basis. The Company's GMS between international buyers and sellers in the same country grew 43% on a y-o-y basis.
Cash Matters
Etsy's net cash provided by operating activities was $35.1 million in Q4 2017 compared to $20.1 million in Q4 2016, principally driven by revenue growth and lower employee-related costs. The Company's cash, marketable securities, and short-term investments were $340.6 million as of December 31, 2017.
Under the stock repurchase program announced in November 2017, Etsy repurchased an aggregate of approximately $10.3 million, or 586,231 shares, of its common stock in Q4 2017.
Stock Performance Snapshot
April 10, 2018 - At Tuesday's closing bell, Etsy's stock climbed 8.33%, ending the trading session at $29.90.
Volume traded for the day: 5.60 million shares, which was above the 3-month average volume of 2.67 million shares.
Stock performance in the last month - up 7.05%; previous three-month period - up 47.15%; past twelve-month period - up 185.58%; and year-to-date - up 46.21%
After yesterday's close, Etsy's market cap was at $3.75 billion.
Price to Earnings (P/E) ratio was at 71.70.
The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 1.4% at the end of the session.
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