Etsy Revenue Continues to Grow, But Losses Linger
The online marketplace posted revenue of $365 million for a year that still ended with a net loss of $30 million and said a search continues to replace its outgoing chief financial officer.
Etsy Inc. saw revenue grow by double digits over 2016 and the fourth quarter, but still ended with a sizable net loss.
The retail and craft marketplace, which went public in 2015, posted revenue of $365 million for the year, an increase of 33 percent over 2015, but its net loss came in at about $30 million.
While the loss is down from the $54 million loss Etsy realized in 2015, the company had a range of expenses last year, including the acquisition of artificial intelligence company Blackbird Technologies for an undisclosed price.
For the fourth quarter, revenues grew by more than 25 percent to $110.2 million, but the $21.4 million net loss for the period far outstripped the $4.2 million net loss seen at the end of 2015.
Nevertheless, Etsy’s chairman and chief executive officer Chad Dickerson said the company exited 2016 “with strong momentum.”
“We delivered fourth-quarter and full-year financial results that exceeded our guidance, introduced new products such as Google Shopping and launched our first-ever global brand campaign,” Dickerson added.
He also pointed to Etsy Studio, a stand-alone online craft supply marketplace billed as a rival to in-store craft leaders such as Jo-Ann Fabrics and Michaels Stores, and efforts the company has made to improve the shopping and selling experience on the main site.
“These announcements underscore our bold, ambitious efforts to support creative entrepreneurs and we believe they create new long-term growth opportunities for Etsy,” Dickerson said.
The company also said that its chief financial officer Kristina Salen is leaving at the end of March “to pursue other professional opportunities” and a search for her successor is ongoing.
In 2017, Etsy said it expects revenue to continue to grow by between 20 and 22 percent, but said it could not provide net income targets for the year. However, Etsy does expect expenses, including marketing and product development, to increase.