If you’re an Etsy investor, you’re somewhere between ecstatic and off the rails after two days of gains totaling more than 23 percent. Fortunately for investors, the fun hasn’t stopped.
The e-commerce site specializing in handmade goods posted its second quarter earnings just after the bell today. Investors reacted by trading shares in the company up in after-hours trading. This comes in the wake of a “buy” rating issued by Citigroup that sparked the greatest spike in value for the company since July 2015.
Initially after the earnings dropped, investors bid the Etsy share price up by more than six percent. Since then, the share price has dropped slightly, but remains above its closing price.
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The company posted revenue of $85.35 million, above analyst forecasts of $80.6 million. Revenue for the same period last year was $61.37 million. This represents year over year growth of 39.1 percent. Earnings per share came in at a loss of six cents, while a Wall Street consensus was expecting them to come in at a loss of one cent per share.
Gross merchandise sales (GMS) for Etsy came in at $669.7 million. This time last year, Etsy was running $546.2 million in goods. This quarter’s GMS is up 22.6 percent compared to 2015. This doesn’t match the 24.6 percent gains the company saw between Q2 2014 and Q2 2015.
Moving forward, GMS guidance has improved to an expected growth of 15-17 percent, while revised revenue guidance indicates 25-28 percent growth. To accomplish this, Etsy plans to focus on mobile sales conversions, seller services and international growth.
“During the second quarter, we expanded our global community to include approximately 1.7 million active sellers and 26.1 million active buyers,” said Etsy CEO, Chad Dickerson, in a statement.
Etsy stock has struggled to find a foothold since the company IPOed back in April of 2015. Etsy ended trading today at $12.71, below its IPO price of $16 per share, despite a strong week.
Amazon is on the heels of Etsy with its own Handmade store. Etsy has also struggled with its payment processor WorldPay over the last month. Millions of transactions ended up being delayed for buyers and merchants in a saga that went on for weeks, although the issues don’t seem to have had a significant negative effect on gross merchandise sales.