(Image Source: CNBC)
Etsy is an online marketplace dedicated to handmade and personalized products. Along with other e-commerce giants like Amazon and Walmart, Etsy benefited greatly from the pandemic-driven shift towards online shopping.
In the fourth quarter, Etsy’s revenue was expected to exceed Wall Street’s forecast of $383 million. The e-commerce company has reported a surge of revenue by 129% and expects its revenue to be between $513 to $536 million. The positive result leads to the surge of Etsy’s stock. Following the report, the stock increased by 8% in extended trading. 61 million new and reactivated accounts have been added to the platform and the rate of frequent buyers has grown by 160%.
However, Etsy had refused to provide any predictions for 2021 since it depends on the pandemic’s situation. It is hard to say how sustainable pandemic-fueled growth will be in the long-term. Etsy CEO Josh Silverman is well aware that this surge will likely tone down in 2021:
“While Etsy’s growth in 2021 is likely to decelerate off of last year’s high levels along with the rest of e-commerce, we have more conviction than ever to invest in our business for the long-term, building top of mind awareness in the hearts and minds of consumers, with an ambition to outperform e-commerce and gain market share.” – Josh Silverman, CEO at Etsy