Etsy has been one of the stand out performers of 2020 and it is looking to bring that momentum into 2021. They have just published their latest investor presentation which gives the deepest insight into the current state of the Etsy marketplace.
We are going to share with you the they key statistics from the presentation that we feel paints the most clear picture of Etsy in 2021. The two core statistics for any marketplace will always be the number of buyers and sellers. As of the 31st December 2020, Etsy had 81.9 Million active buyers, and 4.4 Million active sellers.
The Etsy Opportunity
Etsy identified there Total Addressable Market (TAM) in 2019 as a $1.7 Trillion market spread across their 6 core geographies; United States, United Kingdom, Canada, Germany, Australia and France.
In 2019 Etsy achieved a global Gross Merchandising Sales (GMS) figures of $5 Billion which means they have an estimated market share of 5% showing the huge opportunity left for Etsy to impact their TAM.
eCommerce had a great 2020, but Etsy out performed the eCommerce growth rate by 2.5% and is now the 4th largest eCommerce website in the U.S.
When looking at their next two biggest international markets, in 2020 Etsy in the UK saw a GMV growth of 189% and Germany experienced 109% growth.
Strong Financial Position
Key financial statistics for Etsy in 2020:
- GMS – $10.3 Billion (106% yoy)
- Revenue – $1.7 Billion (111% yoy)
- Adjusted EBITDA – $549 Million
Key statistics for Q4 2020:
- GMS – $3.6 Billion (118% yoy)
- Revenue – $617 Million (129% yoy)
- Adjusted EBITDA – $192 Million
Etsy has also diversified their revenue model by increasing their value added services offering including ads and shipping labels.
The current split of their revenue model is 76.7% Marketplaces and 23.3% services revenue.
Due to the capital light business model and a strong EBITDA and free cash flow has resulted in Etsy having a cash balance of $1.7 Billion by the end of December 2020.
Outside of the company, Etsy has also had a positive impact on the wider U.S Economy. In 2020 Etsy sellers contributed $13 Billion to the U.S economy which was a 142% increase on the 2018 numbers, and created approximately 2.6 million jobs.
Etsy is in a really strong position entering 2021 and if they continue on the same path they will have a fantastic year with so much potential for growth left.
If you are interested in looking at the full slide deck published by Etsy, you can check it out here.
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