The Etsy 2020 full year results are out along with their fourth quarter earnings and it was another bumper set of numbers with triple digit growth across the board. We’re not particularly surprised (although we remain impressed), because we’ve already noted that traffic to Etsy was up over 100% so it’s natural that sales would follow.
The great news for Etsy sellers is that sales are bouyant and accelerating in categories other than fabric facemasks. Facemasks were the boost Etsy saw at the start of the pandemic, but buyers are now purchasing across other verticals which bodes well for them hanging around and becoming regular buyers into the future.
Etsy 2020 financials
Etsy GMS reached $3.6 billion (up nearly 118% y-o-y), revenue climbed to $617 million (up 129% y-o-y), and adjusted EBITDA margin was 31.1% (up 1,090 bps).
These outstanding fourth quarter results led Etsy to deliver full year consolidated GMS of $10.3 billion (up 107% y-o-y) and revenue of $1.7 billion (up 111% y-o-y). Etsy’s community expanded to 82 million active buyers, shopping from 4.4 million active sellers around the world as of 12/31/2020.
For the current quarter, Etsy are forecasting revenue in the range of $513M – $536M, well above what might previously have been anticipated. Due to continued uncertainty of future macroeconomic conditions as a result of the ongoing COVID-19 pandemic, Etsy will currently not issue guidance for the full year 2021.
Etsy 2020 highlights
- Factors contributing to Etsy’s exceptional fourth quarter performance included acceleration in non-mask product categories, better than expected macro conditions, successful product and marketing initiatives and an extended holiday buying season including a record-setting ‘Cyber Five’ on Etsy.com. Etsy’s peak holiday shopping day was Small Business Saturday — growth was up 150% year-over-year, and we generated over $50,000 in GMS per minute!
- Many of these factors drove traffic of new and repeat buyers, positively impacting conversion rate and GMS.
- Etsy brought in more than 61 million new and reactivated shoppers in 2020.
- Active sellers grew by 62% and, notably, GMS per seller was up 22
“As Etsy has earned the right to be top of mind for global consumers, we will build loyalty and trust with our buyers through delightful shopping experiences that are unlike those you can find elsewhere. We stand for something different. An important focus for 2021 is on frequency – to be a global brand buyers come back to more than ever through more personalized and engaging experiences, while giving sellers more opportunities to grow.
The beauty of our business model is that success is a virtuous cycle – frequency leads to higher lifetime value of buyers, which allows us to invest more in the marketplace – and our team is executing an exciting and focused plan to do just that.
While Etsy’s growth in 2021 is likely to decelerate off of last year’s high levels along with the rest of ecommerce, 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, Etsy