Nathan Andrada – Fourth Estate Contributor
New York, NY, United States (4E) – Etsy Inc. posted a profit in the first quarter — the first time since April 2015 when it went public — as growth in revenue and users stayed strong, according to a company statement released on Tuesday.
In the first quarter, the company reported an $81.8mn revenue, compared with analysts’ average estimate of $75.2mn. Profit was 1 cent per share, surpassing analysts’ estimate for a 3 cent per share loss.
The company makes money charging fees to sellers of items like T-shirts, housewares and jewelry, and for use of its online platform. Last month, the Brooklyn, New York-based company launched its Pattern by Etsy service, which allows merchants to build customized websites.
Etsy CEO Chad Dickerson is focusing on boosting mobile sales and offering paid services to sellers. The company, however, is facing new competition from Amazon.com, which launched a section called Handmade in October.
The number of active sellers climbed 12 percent to 1.6 million, while active buyers jumped 20 percent to 25 million. Gross merchandise sales were up 18 percent to $629.9mn.