Etsy reports 39 Percent increase in revenue, $629 million in GMS
Etsy, Inc. on Tuesday announced the financial results for its first quarter 2016, ended March 31, 2016.
The company’s gross merchandise sales increased 18.4% to $629.9 million. Total revenue was $81.8 million, up 39.8% year-over-year, and marketplace revenue grew 18.5%, due to growth in transaction fee revenue and listing fee revenue.
Gross profit for the quarter was $53.9 million, up 42.6% year-over-year, and gross margin was 65.9%, up 130 bps compared with 64.6% in the first quarter of 2015. Non-GAAP adjusted EBITDA was $14.8 million and grew 121.1% year-over-year, and net income was $1.2 million, compared with a $36.6 million net loss.
"Our financial results in the first quarter were driven by our strong execution," said Chad Dickerson, Etsy, Inc. CEO and Chair. "We supported 1.6 million active sellers and 25.0 million active buyers, who together generated nearly $630 million in GMS. 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. We are as committed as ever to our vision of reimagining commerce and are looking forward to a productive year."
The company believes that weaker currencies had an indirect impact on international buyer behavior and GMS growth in this quarter. Percent international GMS began to stabilize in the first quarter and is expected to grow over time to represent 50% of the total GMS.
Percent mobile visits also increased to 63% from 59% in the first quarter of 2015. The company said, “Continuing the trend we've seen for multiple quarters, mobile visits once again grew faster than desktop visits and, once again we narrowed the gap between mobile visits and mobile GMS. Further supporting this trend was our strong year-over-year growth in mobile app and mobile web GMS, which each grew faster than desktop GMS during the first quarter.”
Etsy in the first quarter launched a new seller service and new products and seller tools, which are Pattern by Etsy, Shop Home and Shop Videos. Pattern by Etsy allows for users to create their own custom websites.
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