Etsy rallies after posting a better-than-feared earnings report ahead of the holiday season

Etsy (NASDAQ:ETSY) rallied in postmarket trading on Wednesday after a mixed earnings report. The online retailer beat revenue and adjusted EBITDA expectations, but fell short of analyst marks for EPS, gross merchandise sales, and the active buyers tally.

The company said it reactivated 6.4 million buyers, up 5.6% from the prior year period, and acquired 5.3 million new buyers. It was noted that the retention of active buyers remains above pre-pandemic levels on a trailing twelve-month basis, as does Etsy’s (ETSY) quarterly new buyer additions.

Investors may be focused on the Q4 guidance from Etsy (ETSY) for a take rate of 22.3% vs. 21.8% consensus. Etsy (ETSY) also guided for a full-year adjusted EBITDA margin rate of 27.4% to 27.7% vs. 26.8% consensus. Those marks are important as they are for the holiday quarter.

“While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy even more Etsy – which we believe will lift our boat when the tide comes back in again,” noted CEO Josh Silverman.

Shares of Etsy (ETSY) were up 10.7% in postmarket action after falling almost 15% in the six weeks ahead of the earnings report. Short interest on Etsy (ETSY) stands at 14.8% of the total float.