Etsy's first quarter financial report released! 7 million new buyers

It is learned that on May 4, Etsy announced its first quarter financial results ending March 31, 2022, with a consolidated GMV of US$3.3 billion, a year-on-year increase of 3.5%. The GMV of the Etsy market was US$2.8 billion, a year-on-year decrease of 2.0%, and an increase of 177% compared with the first quarter of 2019.

In addition to being impacted by very high growth in the same period last year, the decline in Etsy's marketplace GMV was also impacted by factors including headwinds related to discretionary consumer spending, continued reopening, and geopolitical events.

Etsy's consolidated revenue for the first quarter was $579.3 million, up 5.2% from the first quarter of 2021. Net income was $86.1 million, down 40.1% year-over-year, with diluted earnings per share of $0.60. The decline in net income was primarily due to an increase in employee compensation-related expenses, as the total number of employees increased by approximately 71% year-over-year, including an increase in the number of employees due to the acquisitions of Depop and Elo7.

Etsy’s Chief Financial Officer Rachel Glaser said: “Etsy’s first quarter 2022 consolidated adjusted EBITDA margin was 27.5%, a decrease of 600 basis points compared to the first quarter of 2021, which was consistent with our expectations.”

In the first quarter, Etsy acquired approximately 7 million new buyers, and the rate of new buyer acquisition continues to increase significantly compared to pre-pandemic levels. Non-U.S. GMV on the Etsy platform accounted for 45% of total GMV and increased 5% year-over-year on a currency-neutral basis.

Here are some operational highlights of the Etsy Affiliate Marketplace:

Reverb launched a new Google integration to continue optimizing our performance marketing efficiencies and better target potential buyers with higher potential lifetime value. Reverb also continued to expand testing of new advertising channels, including display advertising, affiliate and influencer marketing.

Depop increased buyer conversion and frequency through its new “Make an Offer” feature, which allows buyers to seamlessly submit offers to sellers for products they are interested in. Depop also increased brand awareness among Gen Z audiences in select local markets in the U.S., launched its first digital video campaign, and continued to develop its influencer marketing strategy.

Elo7 has expanded shipping options for sellers, reducing shipping costs and shortening delivery times, improving the overall buyer experience and driving increased conversions. Elo7 has also enhanced search capabilities, which will be expanded to all searches in the second quarter.

Editor✎ Ashley/

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