Etsy’s sales grow 22.6% in Q2
August 3, 2016 01:01 PM
Sales on Etsy Inc., the operator of an online marketplace for hand-crafted goods, grew 22.6% in Q2, driven by a 20.3% growth in active buyers and an 11.5% increase in active sellers from the same period in 2015.
For the quarter ended June 30, Etsy reported gross merchandise sales, of$669.7 million, up from $546.2 million in Q2 2015. Not including the impact of currency exchange rates, Etsy says gross merchandise sales increased 23.1%.
Etsy ended the quarter with 1.65 million active sellers, up 11.5%, from 1.48 million a year ago, and 26.10 million active buyers, an increase of 20.3%, from 21.70 million. Active buyers are those who have bought on Etsy at least once in the past 12 months.
“By better connecting our existing base of active buyers to the more than 35 million items for sale in Etsy.com with search enhancements, we’re successfully encouraging the 53% of Etsy buyers who made just one purchase in 2015 to come back to Etsy more frequently,” CEO Chad Dickerson told analysts during the earnings call Tuesday, according to a transcript from Seeking Alpha.
Etsy’s total revenue, which includes listing fees, seller services and commissions on sales, grew 39.1% in Q2 compared with a year ago. Revenue from services Etsy offers to its sellers grew 58.1% in the quarter.
Etsy’s mobile and international sales are showing the best growth rates. Mobile represented 64% of web visits in Q2, compared with 60% in the same period a year ago. Sales through mobile devices were 47% of total sales, up from 43% in Q2 2015.
International sales were 30.7% of all sales in the second quarter, up from 30.2% a year ago—the first year-over-year increase in the percent of international sales since 2014. “We believe we just scratched the service when it comes to realizing our global potential,” Dickerson said. “Our ability to scale internationally is driven in part by our powerful technology platform. One example of this is our innovative use of machine translation, which helps localize the Etsy experience and making it easier for Etsy sellers and Etsy buyers to transact when they don’t share the same native language.”
Etsy’s long-term goal is to grow international transactions to 50% of gross merchandise sales, Dickerson told analysts, though he did not offer a timeline. Doing so will involve a continued focus on marketplaces and communities in Australia, Canada, France, Germany and the United Kingdom, he says.
For the second quarter ended June 30, Etsy also reports:
- Revenue of $85.35 million, up 39.1% from $61.37 million a year ago. Marketplace revenue of $37.5 million, up 22.9% from $30.5 million. Seller services revenue of $47.1 million, up 58.1% from $29.8 million.
- Net loss of $7.3 million compared with a net loss of $6.4 million a year ago.
For the six months ended June 30, Etsy reports:
- Gross merchandise sales of $1.29 billion, up 20.6% from $1.07 billion in the same period in 2015.
- Revenue of $167.2 million, up 39.4% from $119.9 million. Marketplace revenue of $73.1 million, up 20.6% from $60.6 million. Seller services revenue of $90.6 million, up 58.8% from $57.05 million.
- Net loss of $6.1 million compared with $42.9 million a year ago.