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137% GROWTH This LITTLE KNOWN #Ecommerce player grew by 137% in Q2 ’20
It is SMALLER than $SHOP $SE $MELI $AMZN with its market cap of $ 14B
Net Income of $ 96.4m on sales of $ 428m GROWTH and NET INCOME are NOT INCOMPATIBLEHere is a SHORT thread
$ETSY is an e-Commerce platform 
where buyers mostly sell handmade or vintage products and crafts
It was launched in 2005 and started trading in 2015
Back in 2015, it had sales of $ 58m
and booked an average loss of $ 7m per Q.
where buyers mostly sell handmade or vintage products and craftsIt was launched in 2005 and started trading in 2015
Back in 2015, it had sales of $ 58m
and booked an average loss of $ 7m per Q.
FAST FORWARD TO Q2 ’20 Revenue grew to $ 428m for a 137% YoY growth coming from $ 181m
Average growth pre-COVID stood at around 35% YoY
GMs of 74% (up from 66% hist.) and OMs of 28% (up from 10% hist.)
$ETSY is sitting on a war chest of $ 1B in cash 
with $ 1.2B in Current Assets vs. $ 279m in Current Liab.
It generated an Operating CF of $ 220m this Q ($ 50m / Q hist.)
with $ 1.2B in Current Assets vs. $ 279m in Current Liab. It generated an Operating CF of $ 220m this Q ($ 50m / Q hist.)
YES BUT that is NOT SUSTAINABLE because they just sold tons of MASKS 
Well, I see you coming
You’d say that $ETSY was the prime supplier of handmade & fancy masks during the pandemic 
Let’s cut the chatter and see what the numbers tell
Non-mask sales are up 93% YoY and Gross Merchandise Sales (GMS) for the following categories are surging
Homeware & furnishings GMS grew 128% YoY
Jewellery & accessories GMS grew 50% YoY
Craft supplies GMS grew 138% YoY
Beauty & Personal Care GMS grew 187% YoY
Homeware & furnishings GMS grew 128% YoY Jewellery & accessories GMS grew 50% YoY Craft supplies GMS grew 138% YoY Beauty & Personal Care GMS grew 187% YoY
$ETSY is thus an #eCommerce platform Not a mere retailer of COVID masks
“Locally produced”
“Vegan” 
“Organic” 
“Reused materials” 
you know what all of these have in common?
They are booming and $ETSY is providing the platform this market needs 
Not a mere retailer of COVID masks“Locally produced”
“Vegan” “Organic” “Reused materials” you know what all of these have in common?They are booming
and $ETSY is providing the platform this market needs
Here are some figures on the world going vegan and organic
There were 20m vegans in the U.S. in 2017, up from 4m in 2914
11k+ vegan food and drink businesses were launched in the EU in 2019, up 93% from 2016
In SEA vegan product launches increased by 440%
There were 20m vegans in the U.S. in 2017, up from 4m in 2914 11k+ vegan food and drink businesses were launched in the EU in 2019, up 93% from 2016 In SEA vegan product launches increased by 440%
Still not convinced? Just look for “Vegan” on Google Trends
COVID gave $ETSY a huge bump forward as many new customers flocked inThe numbers of loyal customers
increased by around 55% A considerably larger customer base making repeat purchases sounds like big cash
As $PINS is growing, $ETSY is “Pinterestifying” itself - enabling users to save and favourite items $ETSY is now enabling sellers to upload videos 
in order to showcase their product with already 700k videos uploaded
Key Risks Q2 ’20 was a very strong quarter for $ETSY, as lockdowns go away, buyers might buy their crafts and vintage goods in brick and mortar shops againThe possibility to buy directly from Instagram $FB and $PINS might be a real threat to $ETSY
The Crunchy Part Stats show, we are just at the beginning of the handmade, local, recycled and vegan trends
Despite fierce competition from larger players, $ETSY still managed to grow its revenues 137% YoY while keeping COSTS CONTROLLED
With a 93% growth YoY without mask revenue, $ETSY has proven they are real #ecommerce players such as $AMZN $SHOP $MELI
Investing in $ETSY today is a way to enter a company with solid financials that is ideally placed in the key trends that will shape the 2020s
For now, we’re entering $ETSY with a medium stake
$MELI is on our watchlist 
To Be Reviewed SOON Please note that this is not a recommendation to buy - You are responsible for conducting your own research
Hope you liked this thread!
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Here is a review for $ETSY - would love to hear your take the matter 
@LiviamCapital
@anandchokkavelu
@willschoebs
@LiviamCapital
@anandchokkavelu
@willschoebs
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Nielsen
✑ TheVeganSociety
✑ TheBeet
✑ TechNavio
Sources
✑ Investor presentation
✑ Company website
✑ Nielsen
✑ TheVeganSociety
✑ TheBeet
✑ TechNavio
