(Reuters) -Etsy Inc on Wednesday beat Wall Street expectations for quarterly revenue, helped by demand for home goods, clothes, jewelry and accessories offered on its e-commerce platform, sending its shares up 4% in extended trading.
The results show that Etsy’s e-commerce platform remains popular among cost-conscious consumers, even as the threat of recession weighs on non-essential spending.
Net revenue rose to $807.2 million in the quarter from $717.1 million a year earlier. Analysts on average had expected revenue of about $751.8 million, as per Refinitiv IBES data.
For the first quarter, the arts and craft marketplace platform forecast revenue in the range of $600 million to $640 million, compared with analysts’ average expectation of $621.6 million, according to IBES data from Refinitiv.
The company also expects first-quarter gross merchandise sales, a key industry metric, to be in the range of $2.95 billion to $3.15 billion, compared to $4 billion reported in the fourth quarter ending Dec. 31.
Last week, short seller Citron Research said Etsy had become one of the largest platforms in the world for counterfeit goods.
The percentage of counterfeit goods on Etsy has become too large and the company could no longer defend it as a small percentage of revenue, Citron had said.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)
