Etsy delivered better-than-expected second quarter financial results on Wednesday, with growth leveling off after its facemask-fueled sales boom in 2020.
The company posted a Q2 net income of $98.2 million, with non-GAAP earnings of 68 cents a share on revenue of $528.9 million, up 23% from the previous year. Wall Street was expecting earnings of 63 cents a share on revenue of $524.8 million million.
Etsy said revenue growth was driven by both Marketplace revenue. The company's Gross Merchandise Sales (GMS increased by 13.1% to $3 billion, while Etsy marketplace GMS was $2.8 billion, up 14.2% year-over-year.
Etsy ended the quarter with 90.4 million active buyers, up from 60.2 million in the second quarter of 2020.
In prepared remarks, Etsy CFO Rachel Glaser said the company remains encouraged by Etsy's underlying growth and buyer trends despite the post-pandemic shift in consumer spending patterns.
"For example, despite a decline in new buyer growth, which we anticipated as we emerge from the pandemic, in the second quarter we still added 8 million new buyers to the Etsy marketplace - nearly double the number of new buyers acquired in the second quarter of 2019," Glaser said. "Furthermore, GMS per active buyer on a trailing twelve month basis was up 22% as compared to the second quarter of 2020, another record high for this important metric. We're also leveraging our strong financial position to invest in people, product, marketing, and infrastructure to support future growth. We believe our capital light business model will enable us to make these investments while continuing to deliver healthy levels of adjusted EBITDA."
Looking ahead, the company expects third quarter revenue in the range of $500 million to $525 million, compared to analyst estimates for revenue of $524.9 million.
The company declined to provide full-year guidance, citing "continued uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic."
Shares of Etsy dropped more than 13% in after hours trading on the light guidance.