Etsy CEO Josh Silverman discussed his company’s earnings with CNBC’s Jim Cramer on Thursday, noting that the e-commerce platform closed out Q2 with a new all-time high of active buyers, just under 91 million.
Etsy, an online platform where consumers can buy and sell crafts and other homemade goods, reported a better-than-expected quarter Thursday after close, with bottom and top line beats. Etsy reported $629 million in revenue, topping $619 million consensus estimates, according to Refinitiv. However, the platform gave weak third-quarter guidance, and stock plummeted more than 12% Thursday afternoon.
“Etsy experienced extraordinary gains during the pandemic, and unlike so many other companies, we’ve held almost all of those gains,” Silverman said. “And so now, the next step for Etsy is to show that we can grow on top of those enormous gains from the pandemic.”
The pandemic was a boon for Etsy, with its revenue tripling in 2020 alone, largely driven by the sale of face masks, but the company has seen “stiff headwinds and uncertain macroeconomic conditions” since, Silverman said in a Thursday conference call.
Silverman told Cramer that Etsy is driving its revenue growth by encouraging sellers’ success, such as providing pricing and promotional tools.
“If you’re a creator, you can create things, and then, for 20 cents, open a shop on Etsy and sell to the whole world,” Silverman said. “There’s no better place for creative entrepreneurs to be, and we’re seeing that.”
The company is also seeing strong international growth, as well as strong performance during holidays and special occasions, Silverman said. He added that households making over $100,000 are spending more on Etsy, but those with lower total household incomes are spending less on the site.
“We’re doing a lot to make sure you can get to the very best of Etsy easily,” Silverman said. “There’s 115 million things for sale on Etsy right now. So our job is to bring the very best of Etsy to the front.”