Etsy for the first time in the black - net profit amounted to $ 1.2 million

The public offering of shares of the company does not always indicate positive results - Etsy, which provides services for trading between users, last month reported on profits for the first time since April 2015. Up to this point, the Etsy management quarterly reported on the growing profits and the number of active users of the platform.

Over the first quarter of 2016, Etsy's profit grew by 40% to $ 81.8 million, surpassing analysts' expectations, which predicted a profit of $ 75 million. After this news, Etsy shares rose 12% to $ 9.41, which is still much lower than the cost shares after placement - then the securities could be purchased at a price of $ 16.
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“We began to increase marketing spending, which grew more slowly than revenues,” said Etsy representatives.

In the last quarter, marketing costs rose by 30% to $ 15.8 million, which was partly the reason for such an increase in revenues. Compared to the same period in 2015, when Etsy reported a loss of $ 36.6 million, revenue for the past quarter was $ 1.2 million. The base of active sellers increased by 12% to 1.6 million, while the number of buyers increased by 25% to 25 million with an increase in the share of mobile visitors to the platform to 63% against 59% a quarter earlier. Turnover from items sold during this time amounted to $ 629.9 million.

Etsy’s monetization is based on the concept of charging each item sold. Recently, the service has managed to run into competitors in the face of Amazon - in October last year, the Internet giant launched a section in its online store dedicated to hand-made goods. It is precisely this audience that is designed for Etsy, which loses Amazon in terms of popularity and trust in the brand from buyers and sellers. Despite this, Etsy predicts annual profit growth of 20-25% over the next three years.