Q1 Beats: Revenue $631M, EPS $0.89, GMS Up 5.5%, Price Target Rises
Etsy's Q1 revenue rose to $631.3 million, exceeding estimates, while EPS of $0.89 outpaced the $0.62 consensus and drove a 10% stock jump. Gross merchandise sales climbed 5.5% to $2.5 billion with active buyers increasing sequentially to 86.6 million, prompting Evercore ISI to raise its price target to $72.
1. Q1 Earnings Beat Expectations
Etsy reported first-quarter revenue of $631.3 million versus analysts’ $620 million estimate and delivered EPS of $0.89 against a $0.62 consensus. Gross merchandise sales rose 5.5% year-over-year to $2.5 billion, while active buyer counts grew sequentially for the first time in two years to 86.6 million and mobile app GMS accounted for 47% of volume, up 11.2%.
2. Analyst Raises Price Target to $72
Following the strong quarter, Evercore ISI lifted its price target on Etsy shares from $56 to $72, implying roughly 3% upside. The move came as the stock rallied about 10% to near $70 on investors’ positive response to the beat and renewed confidence in growth initiatives.
3. Guidance and Capital Allocation
Etsy forecasts second-quarter marketplace GMS of $2.48 billion to $2.53 billion, reflecting 3%–5% year-over-year growth, with an expected take rate of 25.7% and adjusted EBITDA margin of 27%–29%. The company repurchased $145 million of stock, ended the quarter with $1.6 billion in cash and investments, and anticipates closing its $1.2 billion Depop sale by Q3.