Etsy Shares Tumble After Q1 Loss

Shares of

dropped more than 14 percent in after-hours trading after the company reported a loss in the first quarter. The Brooklyn, New York-based company posted a quarterly net loss of $36.6 million, or $0.84 per share, versus a year-ago loss of $0.5 million, or $0.01 per share. Its revenue rose 44.4 percent year-over-year to $58.5 million from $40.5 million. Gross merchandise sales surged 28.2 percent to $531.9 million. Active sellers rose 25.8 percent, while active buyers climbed 36.5 percent. Percent mobile visits rose 750 bps to 57.7 percent, versus 50.2 percent in the year-ago quarter. Non-GAAP adjusted EBITDA rose 9.3 percent year-over-year to $6.7 million. Total operating expenses rose 72.6 percent to $42.7 million in the quarter. Gross profit for the first quarter climbed 50.5 percent to $37.8 million, while gross margin widened to 64.6 percent from 62.0 percent. As of April 30, 2015, the company had $293.5 million in cash and marketable securities. The average estimate among 10 Estimize users was for a loss of $0.03 per share and revenue of $64.50 million. Chad Dickerson, Etsy, Inc. CEO and Chairman said, "At the end of the first quarter of 2015, the Etsy community included more than 1.4 million active sellers and 20.8 million active buyers. We made progress down our path to make Etsy an everyday experience, build local marketplaces, globally, offer high-impact seller services, and expand the Etsy economy. We will continue to concentrate on creating long-term value for Etsy and our community, which we believe will result in sustainable long-term returns for our investors." Etsy shares dipped 14.29 percent to $18.00 in the after-hours trading session.