Stock Analysis on Net
Stock Analysis on Net

Etsy Inc. (NASDAQ:ETSY)

$22.49

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Etsy Inc., consolidated income statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Revenue
Cost of revenue
Gross profit
Marketing
Product development
General and administrative
Asset impairment charges
Operating expenses
Income from operations
Loss on extinguishment of debt
Interest expense
Interest and other income
Foreign exchange gain (loss)
Other income (expense)
Income before income taxes
(Provision) benefit for income taxes
Net income

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue and Gross Profit
There is a consistent and significant upward trend in revenue from 2017 to 2021, increasing from approximately $441 million to nearly $2.33 billion, reflecting strong growth over the five-year period. Gross profit similarly increased steadily, rising from about $290 million to over $1.67 billion, which indicates improving scale and profitability in core operations.
Cost of Revenue
Cost of revenue increased in absolute terms each year, rising from roughly $151 million in 2017 to about $655 million in 2021. While this represents higher costs parallel to growth in sales, the faster growth rate in revenue relative to cost of revenue suggests improvement in gross margin efficiency over time.
Operating Expenses

Operating expenses, including marketing, product development, and general and administrative costs, have also escalated substantially:

Marketing
Marketing expenditures nearly sextupled over the period, increasing from approximately $109 million to $655 million, reflecting an aggressive spending strategy likely aimed at fueling growth.
Product Development
Product development costs nearly quadrupled, rising steadily from about $75 million to $272 million, indicating increased investment in innovation and platform enhancement.
General and Administrative
General and administrative expenses more than tripled, growing from approximately $91 million to $283 million, which may be attributed to scaling organizational infrastructure and administrative requirements.

Overall operating expenses grew significantly, from $278 million in 2017 to nearly $1.21 billion in 2021, an increase consistent with expanding operations and increased investment to support growth.

Income from Operations
Income from operations experienced notable growth, increasing from about $12 million in 2017 to $466 million in 2021. This marked improvement suggests that despite rising operating expenses, revenue growth and gross profit expansion have driven enhanced operational profitability.
Non-Operating Items

Interest expense initially grew, peaking in 2020 at $42 million before dropping sharply to under $10 million in 2021, possibly reflecting debt management initiatives. Interest and other income showed fluctuations, peaking in 2019 at about $13 million before declining subsequently.

Foreign exchange gains and losses were volatile, with significant swings including a large gain in 2017 and losses in some subsequent years; however, a positive gain occurred again in 2021.

Other income and expenses varied, with losses in several years and a positive amount in 2021, reflecting some non-recurring or irregular items influencing earnings.

Income Before Taxes and Net Income
Income before income taxes followed a consistent positive trajectory, growing from approximately $32 million in 2017 to nearly $472 million in 2021. Net income demonstrated strong growth as well, rising from roughly $82 million to nearly $494 million during the same period. The profitability trend is indicative of effective cost control relative to revenue and successful scaling.
Provision for Income Taxes
The provision for income taxes showed variability, including negative tax benefits in 2020 and positive amounts in other years. Despite fluctuations, this line item remains a relatively small proportion of pre-tax income, suggesting efficient tax management or impacts from tax credits or carryforwards.