Etsy Posts First Quarterly Profit Since Going Public
May 03 2016 - 5:40PM
Dow Jones News
Etsy Inc. reported a quarterly profit for the first time since
its April 2015 initial public offering, as growth in users and
revenue remained strong.
The Brooklyn, N.Y., company, which runs an online marketplace
for handmade and vintage goods, said revenue rose 40% to $81.8
million, outpacing fourth-quarter growth of 35%.
Analysts polled by Thomson Reuters had projected $75
million.
Shares rose 7.3% to $9.01 in after-hours trading, though they
are still sharply below the company's IPO price of $16.
Marketing costs, a factor in Etsy's losses in recent years, rose
30% to $15.8 million. "We began to gain leverage in our marketing
expenses, which grew more slowly than revenue," the company
said.
Etsy makes money charging fees to sellers of such items as
jewelry, housewares and T-shirts for use of its online platform. It
is facing fresh competition from Amazon.com, which in October
launched a new section called Handmade and directly recruited Etsy
sellers.
For the quarter ended March 31, Etsy earned $1.2 million, or a
penny a share, compared with a loss of $36.6 million, or 84 cents a
share, a year earlier. Analysts had expected a loss of 2 cents a
share.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 03, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Apr 2023 to Apr 2024