Etsy reports solid third quarter, revenue up 21%
today Nov 7, 2017
Etsy announced a solid third quarter on Monday posting earnings of 21 cents per share and revenues of $106.4 million.
The craft-focused e-commerce marketplace saw revenue rise $106.4 million for the third quarter of 2017, ended September 30, 2017.
GMS (gross merchandise sales) was $766.4 million, up 13.2 percent, compared with the third quarter of 2016, boosted by a 10.8 percent year-over-year growth in active sellers and 16.7 percent year-over-year growth in active buyers.
International GMS was approximately 34 percent in the third quarter of 2017, up from approximately 30 percent in the third quarter of 2016.
"In the third quarter, we executed on our strategic initiatives, accelerated GMS and revenue growth and achieved our highest ever Adjusted EBITDA margin since becoming a publicly-traded company," said Josh Silverman, Etsy, Inc. CEO. "We will continue to make progress on our strategy to own 'special' shopping occasions by delivering a more engaging experience for our buyers, and providing our sellers with the tools they need to compete. Looking ahead, we believe our sharpened focus will enable us to build on our momentum, support our sellers throughout the holiday season, and advance our new mission to keep commerce human."
Following a slow 2016, Etsy launched a number of experiments and launches focused on four key initiatives—trust and reliability on Etsy.com, search and discovery, world-class marketing capabilities, and best-in-class seller tools and services.
Looking ahead, Etsy still expects total 2016 GMS to grow 12-14 percent, while revenue should rise 18-20 percent and adjusted EBITDA margin from 16-18 percent.
The online portal, however, will have to factor in stronger competition in Amazon, who in late October launched a separate storefront for its Amazon Handmade gift shop, in an attempt to woo the Etsy customer; those who prefer to shop on a smaller scale and support local artisans with their purchases.
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