NEW YORK - Etsy Inc . (NASDAQ:ETSY) shares jumped 11% in after-hours trading Wednesday after the e-commerce company reported better-than-expected third quarter revenue, despite earnings falling short of analyst forecasts.
The online marketplace for handmade and vintage goods posted revenue of $662.4 million for the quarter, surpassing the consensus estimate of $653.45 million. However, adjusted earnings per share came in at $0.45, below the $0.53 analysts were expecting.
"Our third quarter consolidated results came in roughly as anticipated, with some incremental pressure on Etsy marketplace year-over-year GMS, healthy growth in revenue, and continued strength in our adjusted EBITDA profitability," said Josh Silverman, Etsy's CEO.
Gross merchandise sales (GMS) declined 4.1% year-over-year to $2.9 billion, with the company citing challenging conditions for discretionary goods. However, Etsy's take rate improved to 22.7% from 20.9% a year ago, helping drive the revenue beat.
For the fourth quarter, Etsy expects GMS to decline in the low to mid single digit percentage range YoY. The company forecasts a take rate of 22.3% and adjusted EBITDA margin of 28-29%.
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