Etsy is well known and a major player in the handmade and vintage arena with a marketplace that offers curated collections and suggestions.
Etsy Q2 results see sales growth, but missed estimates send shares down
Etsy Q2 results excited the marketplace sellers with a year-on-year (YoY) growth but disappointed investors with hit shares after missing analysts’ estimates.
The marketplace announced their second-quarter financial results measured on a three-month basis, with total revenue of $181.1 million in comparison to estimates of $183 million which created turbulence of stocks, sending them down by 7%.
The picture for the marketplace sellers looked more positive as Growth Merchandise Sales (GMS) saw a spike of 21.4% on the YoY rate during the collective months of April, May and June. That’s up from 20.2% growth reported last year. The sellers’ hard work was mentioned in the result’s announcement as a “marketplace’s” key growth driver for Etsy’s 36.8% revenue growth.
Etsy’s chief executive officer puts down the GMS growth success to “making great progress improving our product experience and marketing capabilities.” He sparked curiosity by promising merchants “a number of bold new initiatives which we believe will fuel our growth even further, including enhancing the shipping experience, helping our sellers better market and grow their businesses, and our planned acquisition of Reverb.”
The move will see 2,333 active sellers of Etsy, a 17.7% YoY growth, having a possibility to trade on the new, used, and vintage music gear Reverb marketplace, highlighting Etsy’s efforts to popularise sales of vintage goods.
Reverb will continue to operate as a standalone marketplace after the acquisition and will provide support, guidance, and resources to capitalize on areas like improving search and discovery, making selling and buying easier as well as building a global brand and user community.