Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - Etsy has posted better-than-anticipated second-quarter revenue, as the online marketplace cited benefits from more personalized marketing and emerging artificial intelligence technologies.
Strong performance of on-site advertising and payments for both Etsy (NASDAQ:ETSY) and its online fashion portal Depop combined to help drive the top-line result, the company said in a statement.
Revenue rose by 3.8% versus a year ago to $672.7 million, topping Bloomberg consensus estimates of $646.3 million. Its take rate, or the percentage of revenue the platform retained from each transaction it facilitated, stood at 24% "driven by the expansion of Etsy Ads revenue from continued improvements to our bidding algorithms, as well as some
benefit from payments," Etsy said.
Like much of the retail industry, Etsy, known for its items like demi-fine jewelry and decor, has been grappling with the implications of a recent rise in global trade tensions, which could threaten to lead some shoppers to rein in expenditures.
But Etsy has largely been able to shield itself from the impact of the tariffs on its business because much of its products are bought locally. However, higher levies on the European Union, from which Etsy sources some of its items, could present some headwinds.
Against this backdrop, Etsy has been investing in new areas to help facilitate future growth, even as the additional spending has weighed on margins. Operating expenses climbed by 2.3% to $402,686 million in the three months ended on June 30, while adjusted core income margin dipped to 25.1% from 27.7% in the corresponding period last year.
Adjusted earnings before interest, taxes, depreciation and amortization edged down by 5.8% to $169 million, but was still above projections of $163.5 million.
Shares in Etsy advanced by more than 7% in premarket U.S. trading on Wednesday.