Etsy (NASDAQ:ETSY) shares are down -4% within the last 48 hours, with its stock selling at $20.75. This is down from its year-high reached on December 21st at $21.76, a share. Etsy is an e-commerce website and app that focuses specifically on handmade and vintage items. It’s a platform for small businesses to sell their products, very similar to Amazon (NASDAQ:AMZN), and takes a small percentage of each sale.
For the year, the stock is up 76.4%, with its Q3 figures being the biggest turnaround for the stock. This year, the company focused heavily on corporate restructuring, as the stock had consistent bearish movement, since Q3 in 2015.
Year-on-year, gross merchandise sales for the company are up 13% at $766 million USD. Etsy’s revenue is up 22% at $106 million and its net income is $26 million from a loss us $2 million. Etsy is a growth stock, not a value stock, so one would expect high valuations.
CEO, Josh Silverman, took over Etsy this year and produced a sharp management culling. The culling ended up cutting the workforce by 22%. Another focus they had was saving on over-indulgent company costs, such as their yoga-centric Brooklyn office, which saved them $35 million this year alone.
The company’s international brand remains strong and holds offices in four different European countries as well as Canada. Etsy’s CFO, Rachel Glaser, stated in Etsy’s Q3 analyst call, “We look forward to continuing to make focused investments in our international opportunities and believe that the dynamics in our core geographies provide significant headroom for growth.”
The company this year has made practical measures to extend their “Etsy payments” to various international markets. In its Q3 turnaround, its international revenue grew a staggering 43% year-on-year, forcing management to shift its sails. International merchandise sales with 34% of the companies total sales. International potential is the main focus for the coming year and many investors should monitor the growth or movement in the international component of Etsy before investing.
Featured Image: depositphotos/vdovichenko
