An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Shares of Etsy fell more than 4% in extended trading Wednesday after the company released third-quarter results that missed analysts’ estimates for revenue, and forecast a decline in gross merchandise sales, or GMS.
Here’s how the company did:
Earnings per share: 64 cents vs. 51 cents expected by LSEG, formerly known as RefinitivRevenue: $636 million vs. $641 million expected by LSEG
Revenue rose 7% during the third quarter, up from the $595 million the company reported a year earlier. Etsy reported a net income of $87.9 million, or 64 cents per share, while it reported a net loss of $963.1 million during the same period last year.
GMS, which measures the total number of goods sold over a certain period, came in at $3 billion. Etsy said it expects GMS to decline slightly on a year-over-year basis for its fourth quarter.
“There’s no doubt that this is an incredibly challenging environment for spending on consumer discretionary items,” Etsy CEO Josh Silverman said in a release. “It’s therefore important to acknowledge that this volatile macro climate will make it challenging for us to grow this quarter.”
Services revenue, which includes advertising, grew 16% in Etsy’s third quarter. The segment also served as a major sales catalyst during the company’s second quarter, as it grew roughly 21% year over year.
Excluding the after-hours move, shares of Etsy are down more than 49% year to date, while the Nasdaq is down more than 20% for the same period. The stock hit a 52-week low of $59.27 in intraday trading Wednesday before closing at $60.66.
Etsy will host its quarterly call with investors at 5:00 p.m. ET.
Don’t miss these stories from CNBC PRO:
This article was originally published by a Cnbc.com. Read the Original article here. .