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.”
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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.
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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.