Online hand-crafted marketplace
Etsy completes its initial public offering.

Etsy Inc. reported that its revenue of $81.8 million in the first quarter rose 39.8 percent over last year and beat the FactSet estimate of $75.2 million.

Net income for the quarter came in at $1.2 million, or 1 cent per diluted share, up from a loss of $36 million, or negative 84 cents, a year ago. That helped pushed the stock up over 6 percent to $8.95 in after-hours trading.

“We supported 1.6 million active sellers and 25 million active buyers, who together generated nearly $630 million in [gross merchandise sales],” said Chad Dickerson, chief executive officer of Etsy. “The second quarter is also off to an exciting start with the launch of our newest high-impact seller service, Pattern by Etsy, and a host of other products and seller tools that we believe will build long-term value for our community.”

Etsy’s online marketplace announced its GMS for the three months ended March 31 increased 18.4 percent to $629 million from $531 million a year earlier. The sales were supported by a 12.3 percent increase in active sellers and a 20.1 percent increase in active buyers.

Gross profit for the first quarter was $53.9 million, up 42.6 percent year-over-year. Gross margin was 65.9 percent, up 130 basis points over last year’s 64.6 percent.

Etsy’s new Pattern by Etsy was launched in April and is a new paid seller service that enables Etsy sellers to create a custom website. The company expects modest contributions from the new service.

Etsy reiterated guidance for 2016 and the next 3 years. Over the next 3 years, revenue growth is forecast to be between 20 and 25 percent and GMS is guided to a range between 13 to 17 percent. Revenue growth for 2016 is forecast to be at the high end of the 3 year range and GMS growth should be at the midpoint of the range.

The company plans to move into its new Brooklyn headquarters in the second quarter of 2016.

load comments
blog comments powered by Disqus