Etsy releases 2021 fourth quarter financial report! Seller commissions are about to increase

It is learned that Etsy recently reported its fourth-quarter financial results ending December 31, 2021, and announced that it will increase seller sales commission from 5% to 6.5%. The fee change will take effect on April 11, 2022.

Etsy said it will invest most of the incremental revenue from the fee increase in marketing, seller tools and improving customer experience to further expand the platform's influence.

In the fourth quarter, Etsy achieved record levels of GMV, revenue, and adjusted EBITDA. Etsy reported the following highlights of its fourth quarter 2021 financial results:

Performance data

Consolidated GMV reached a record high of US$4.2 billion, a year-on-year increase of 16.5%; Etsy platform GMV also reached a record high of US$3.8 billion, a year-on-year increase of 11.8%, and a two-year increase of 154%.

Non-U.S. GMV on the Etsy marketplace accounted for 44% of total GMV, up 20% year-over-year.

GMV from paid channels accounted for 19% of overall GMV, down 200 basis points from the fourth quarter of 2020 as the percentage of traffic from non-paid channels increased.

Consolidated revenues reached a record $717.1 million, up 16.2% year-over-year.

Net income was $161.6 million, up 8.8% year-over-year, and diluted earnings per share were $1.11.

Non-GAAP Adjusted EBITDA was a record $218.8 million, and Non-GAAP Adjusted EBITDA margin (Non-GAAP Adjusted EBITDA divided by Consolidated Revenue) was 31%, which was consistent with the prior-year period.

Holiday Sales Data

Etsy’s record fourth quarter GMV results were driven by a strong early start to the holiday season in October, a trend that continued into December.

Multiple metrics reached record levels during the holiday season, including 8% year-over-year growth in GMV per buyer on Black Friday, a record 2,000 orders per minute on Cyber ​​Monday, and nearly 500,000 seller stores participating in its Cyber ​​Week sales, up 27% from last year.

Growth in the number of sellers and buyers

Etsy's marketplace had $136 in GMV per active buyer in the last 12 months, up 16% year over year. On a two-year basis, this metric is up 31%.

The Etsy marketplace acquired approximately 10 million new buyers in the fourth quarter, the highest level of new buyer acquisition since the fourth quarter of 2020, and reactivated 6.8 million buyers who had not purchased in a year or more.

Habitual buyers, defined as those who purchased more than 200 days and spent more than $200 in the past 12 months, grew 26% year-over-year and remain the fastest growing group. On a two-year basis, habitual buyers grew 224%.

The report pointed out that more than half of Etsy's active buyers in 2020 and 37% of new buyers made repeat purchases in 2021. In addition, Etsy's revenue and GMV for the whole year of 2021 increased by more than 30%, and the adjusted EBITDA margin for the whole year reached 31%.

Etsy CFO Rachel Glaser said: "We ended the year with fourth quarter results that exceeded our expectations, driven by Etsy's capital-light business model driving high liquidity of incremental revenue.

Editor ✎ Xiao Zhu/

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