Etsy raises 2016 guidance as community continues to grow
E-commerce marketplace Etsy said sales (GMS - gross merchandise sales) rose 22.6% to $546.1 million in the second quarter ended June 30, 2016, boosted by a strong 20.3% year-over-year growth in active buyers.
The number of active sellers also increased by 11.5% in the three month period.
In the second quarter of 2016, Etsy introduced new site capabilities within its paid seller service Pattern by Etsy, launched a localized search tool in France and Germany and integrated FedEX as a new carrier option for Shipping Labels.
International GMS (Gross Merchandise Sales) accounted for 30.7% of the total GMS, up from 30.2% in the second quarter of the previous year. Etsy plans to grow cross-border sales to represent 50% of its total GMS.
Total revenue for the period was up 39.1% YoY to $85.3 million, driven by growth in both Marketplace (+22.8%) and Seller Services (+58.1%) revenue.
The company generated $56.3 million in gross profit, up 42.6% year-over-year.
"During the second quarter, we expanded our global community to include approximately 1.7 million active sellers and 26.1 million active buyers," said Chad Dickerson, Etsy, Inc. CEO and Chair. "We accelerated our GMS growth and provided high impact services to help our creative entrepreneurs start, grow and manage their businesses. This continued focus and discipline led to growth across all of our key metrics and, as a result, we are raising our financial outlook for 2016."
Etsy now expects total 2016 GMS to grow 15-17%, while revenue should rise 25-28%. The e-tailer also revised the Adjusted EBITDA margin from 10-11% to 13-14%.
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