Profit came in at $96.4 million, or 75 cents a share, in the latest quarter, five times the $18 million, or 14 cents a share, of the year-earlier period. Analysts expected net income of 39 cents a share in the latest quarter.
The Brooklyn, N.Y., company’s revenue more than doubled to $429 million in the quarter from $181 million in the year-ago quarter. The FactSet analyst consensus called for sales of $330 million in the latest quarter.
Etsy shares recently traded at $129.12, down 4.72%. The stock has nearly tripled this year, compared with a rise of 3% for the S&P 500.
“Events of the last few months have driven dramatic shifts in consumer shopping habits, which we believe will increase the total available market opportunity for Etsy," Chief Executive Josh Silverman said in a statement.
Etsy enjoyed an increase of 18.7 million new buyers and reactivated buyers in the quarter. Reactivated means consumers who hadn't purchased anything on Etsy for at least a year.
Etsy refrained from offering guidance for the whole year, thanks to the pandemic, but it estimates third-quarter revenue of 85% to 115%.
After the earnings report, Cannacord Genuity analyst Maria Ripps raised her share-price target for Etsy to $160 from $130, maintaining her buy rating.
"We are increasing our ... revenue estimates, reflecting strong recent active buyer growth and ongoing e-commerce tailwinds," she wrote in a commentary.
"We are also raising profitability estimates to reflect our increased scale and operating leverage in the near term."
On July 20, Jefferies analyst Brent Thill said that in the e-commerce space, Etsy and Amazon.com (AMZN) - Get Amazon.com, Inc. Report "are best positioned to benefit over the long-term from behavioral changes resulting from the pandemic."
Also last month, Jefferies analyst John Colantuoni raised his price target for Etsy stock to $125 from $110.