Etsy (NASDAQ: ETSY) reported Q1 EPS of $0.18, in-line with the analyst estimate of $0.18. Revenue for the quarter came in at $228.06 million versus the consensus estimate of $220.21 million.

"Etsy has demonstrated tremendous resiliency in the wake of a global crisis," said Josh Silverman, Etsy, Inc. Chief Executive Officer. "The COVID-19 pandemic has been a test of our team, our marketplaces, our brand, and the underlying strength of our business. While there was no playbook for this situation, we moved with agility, focus, and purpose to support the Etsy global community and live up to our mission. We are proud that our sellers have yet again displayed their ability to rapidly adapt to changing consumer demands, pivoting product offerings with speed and innovation. It\'s also encouraging to see that during this very difficult time, more and more customers are turning to Etsy to meet their daily needs. I\'m particularly gratified that our employees have risen to the challenge, moving with urgency to adjust and serve our stakeholders when they need us most. This period, while incredibly challenging, has been a testament to the agility and strength of Etsy\'s marketplaces."

GUIDANCE:

In light of the impact of COVID-19, on April 2, 2020 Etsy withdrew its 2020 financial guidance, which was established based upon an assumption of stable macro conditions throughout the year. The Company has temporarily moved to providing quarterly guidance.

Regarding Etsy's second quarter performance, Mr. Silverman commented, "After a volatile March, Etsy experienced a dramatic shift in demand during the month of April as global buyers turned to Etsy for cloth face masks given updated guidelines to slow the spread of COVID-19. Our team mobilized quickly to address the surge in face mask demand, which included creation of on-site banners and automated filters, scaling inventory with a call to action for sellers, retraining our search algorithms, and managing delivery expectations. We also experienced broad-based demand across the marketplace leading to over 100% growth for the Etsy marketplace in April. As consumer mindshare shifted in our direction, we again adjusted our marketing messaging and strategy, creating onsite experiences to engage new buyers, and launched a new TV and digital video campaign with an 'Always Open' theme. Our strong performance is thanks to a combination of macro dynamics and Etsy\'s agility to pivot to meet market demands."

Etsy extended our seller support initiatives in April, including providing listing credits for mask sellers as well as listing and ad credits to some of our hardest hit sellers in categories like weddings and party supplies. We donated thousands of face masks to hospitals and have supported many of our small, contracted vendors by keeping them employed despite our own office closures. The combination of one time investments to support our sellers and communities totaled approximately $11-13 million, the majority of which will be incurred in the second quarter of 2020.

Reverb also reported a strong April, with increased demand from new and existing buyers, as the marketplace leveraged its ability to serve as a primary online channel for sellers and buyers at a time when retail stores are closed or have delayed shipping times. As a result, Etsy's consolidated GMS for April was approximately $860 million, up over 130% from the prior year.

It is quite challenging for us to forecast, even in the near term, given the extreme shifts in demand we have seen over the past eight weeks. Our second quarter guidance is based upon our best view today that the recent surge in demand is likely to ease, but GMS strength in April will support strong top-line growth for the quarter. We will also continue to carefully manage our spending, while at the same time investing in key initiatives to deliver sustainable long-term growth.

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