Etsy delivers first-ever billion dollar quarter
today Mar 1, 2018
Etsy ended the year on a high note, reaching for the first time the $1 billion sales mark in its fourth quarter alone.
The craft-focused e-commerce marketplace announced gross merchandising sales (GMS) of 1 billion in the fourth quarter ended December 31, 2017, up 17.8 percent compared with 16.7 percent in the fourth quarter of 2016, driven by strong holiday sales and the successful launch of new services and tools.
International GMS was 33 percent in the fourth quarter of 2017, up from 30 percent.
Total revenue was $136.3 million in the fourth quarter, up 23.6 percent year-over-year. The growth was driven by both Marketplace and Seller Services revenue, where Marketplace revenue grew 15.6 percent and Seller Services revenue grew 33.3 percent.
Meanwhile, net income in the fourth quarter of 2017 was $44.8 million, compared with a $21.4 million net loss in the fourth quarter of 2016.
"Etsy had a good fourth quarter and helped our sellers achieve a meaningful acceleration in sales growth during an important holiday season," said Josh Silverman, Etsy, Inc. CEO, in a news statement.
"We created a more engaging experience for our buyers, and delivered our first-ever billion dollar quarter of GMS, reflecting strong growth across all of our core markets. We believe we're well positioned heading into 2018 and we're looking forward to a great year."
Following a slow 2016, Etsy launched a new strategy focused on growing the Etsy.com marketplace in their six core geographies and owning special purchase occasions throughout the year. The strategy is focused on four key initiatives—trust and reliability on Etsy.com, search and discovery, world-class marketing capabilities, and best-in-class seller tools and services.
CFO Rachel Glaser said that the brand is entering 2018 with positive momentum and is well-positioned for a strong 2018.
Looking ahead, Etsy expects 2018 year-over-year revenue growth of 21 to 23 percent, or $533.6 million to $542 million.
Copyright © 2020 FashionNetwork.com All rights reserved.