Shares of online retailer Etsy (NASDAQ:ETSY) were sharply higher in pre-market trading after the company reported better-than-expected fourth-quarter results, including revenue growth of 129%.
Etsy stock was up more than 5% ahead of the opening trading bell Friday after the strong financial results.
Earnings for Etsy in the fourth quarter of 2020 came in at $1.08 per share versus 59 cents per share that had been expected by analysts. Revenue was $617.4 million compared to $516 million expected by analysts. Fourth-quarter revenue was up 129% compared to a year earlier.
Looking forward, the e-commerce company said it expects revenue in the current first quarter to be between $513 million and $536 million, way ahead of Wall Street’s forecast of $383 million in revenue. Etsy declined to give guidance for the full year of 2021, citing future macroeconomic conditions tied to the global pandemic.
Etsy, which operates an online marketplace known for handmade goods and crafts, has been one of the biggest beneficiaries of the pandemic, as stay-at-home shoppers turned to the company for both essential and non-essential items.
Face masks are one category that has thrived on Etsy during the pandemic. Masks made up 4% of total gross merchandise in the fourth quarter. In the fourth quarter, Etsy said it attracted 61 million new or reactivated shoppers to its site and recorded nearly 160% growth in "habitual buyers."
In a statement, Etsy Chief Executive Josh Silverman said that growth will likely temper in the second half of 2021 compared to last year.
