Net Profit Margin
since 2015
Calculation
Etsy Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 21.19% | = | 100 | × | 493,507) | ÷ | 2,329,114) |
| Dec 31, 2020 | 20.24% | = | 100 | × | 349,246) | ÷ | 1,725,625) |
| Dec 31, 2019 | 11.72% | = | 100 | × | 95,894) | ÷ | 818,379) |
| Dec 31, 2018 | 12.84% | = | 100 | × | 77,491) | ÷ | 603,693) |
| Dec 31, 2017 | 18.54% | = | 100 | × | 81,800) | ÷ | 441,231) |
| Dec 31, 2016 | -8.19% | = | 100 | × | (29,901) | ÷ | 364,967) |
| Dec 31, 2015 | -19.77% | = | 100 | × | (54,063) | ÷ | 273,499) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in thousands
The financial performance from 2015 to 2021 is characterized by a significant transition from operational losses to sustained and expanding profitability. The trajectory indicates a successful shift in the cost structure and a strong capacity to scale revenue while improving bottom-line efficiency.
- Transition to Profitability
- Between 2015 and 2016, a narrowing of losses is observed, with the net profit margin improving from -19.77% to -8.19%. A pivotal shift occurred in 2017, when the company achieved its first positive net income of 81,800 thousand US$, resulting in a net profit margin of 18.54%.
- Margin Stabilization and Consolidation
- Following the initial move into profitability, the period between 2018 and 2019 shows a slight compression in margins. Despite steady revenue growth—increasing from 603,693 thousand US$ in 2018 to 818,379 thousand US$ in 2019—the net profit margin declined from 12.84% to 11.72%, suggesting a period of increased operational investment or rising costs relative to revenue growth.
- Accelerated Scaling and Operational Leverage
- A sharp acceleration in both revenue and profitability is evident from 2020 to 2021. Revenue grew exponentially from 818,379 thousand US$ in 2019 to 2,329,114 thousand US$ by 2021. This growth was accompanied by a significant expansion in net profit margins, which rose to 20.24% in 2020 and reached 21.19% in 2021. The simultaneous increase in both total net income and the profit margin percentage indicates strong operational leverage, where revenue growth significantly outpaced the growth of operating expenses.
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Comparison to Competitors
Etsy Inc., net profit margin, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 21.19% | 7.10% | 9.74% | 6.51% | 0.28% |
| Dec 31, 2020 | 20.24% | 5.53% | 10.20% | 5.93% | 7.84% |
| Dec 31, 2019 | 11.72% | 4.13% | 10.28% | 3.25% | 7.85% |
| Dec 31, 2018 | 12.84% | 4.33% | 8.55% | 5.02% | 7.27% |
| Dec 31, 2017 | 18.54% | 1.71% | 8.41% | 4.76% | 6.93% |
| Dec 31, 2016 | -8.19% | 1.74% | 7.92% | 4.31% | 7.36% |
| Dec 31, 2015 | -19.77% | 0.56% | 7.63% | 4.80% | 7.62% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Etsy Inc., net profit margin, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Etsy Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 21.19% | 7.21% |
| Dec 31, 2020 | 20.24% | 6.58% |
| Dec 31, 2019 | 11.72% | 5.63% |
| Dec 31, 2018 | 12.84% | 5.65% |
| Dec 31, 2017 | 18.54% | 4.42% |
| Dec 31, 2016 | -8.19% | 4.52% |
| Dec 31, 2015 | -19.77% | 4.30% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Discretionary)
Etsy Inc., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| Etsy Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 21.19% | 9.12% |
| Dec 31, 2020 | 20.24% | 5.18% |
| Dec 31, 2019 | 11.72% | 5.92% |
| Dec 31, 2018 | 12.84% | 6.19% |
| Dec 31, 2017 | 18.54% | 4.38% |
| Dec 31, 2016 | -8.19% | 5.77% |
| Dec 31, 2015 | -19.77% | 6.37% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).