Etsy reports Q1 loss, names new CEO
Etsy announced on Tuesday a new CEO, following quarterly earnings that missed expectations. The move to a new CEO also comes as Etsy is being attacked by the hedge fund Black-and-White Capital to explore sale options.
The online commerce platform reported that Chad Dickerson "will step down as CEO and Chair of the Board of Directors," effective May 3, and named Josh Silverman as the incoming CEO and Fred Wilson as the new chair of the board.
"It has been an honor to lead Etsy as CEO for the past six years and the three years before that as CTO. The Board decided that it was time for new leadership to take Etsy forward and I support that decision,” Dickerson said, in a news statement.
Silverman has been on Etsy’s Board of Directors since November. He previously served as President of Consumer Products and Services at American Express, as well as held the position of CEO for companies like Skype and shopping.com, an eBay company.
For its first quarter, ended March 31, 2017, Etsy reported earnings of zero cents per share. Net loss for the first quarter of 2017 was $0.4 million, compared with net income of $1.2 million in the first quarter of 2016. The company also reported revenue below expectations at $96.9 million, still up however by 18.4 percent year-over-year.
In an effort to reduce expenses, Etsy also announced that it will be reducing its staff count by approximately 8 percent. This will include the elimination of approximately 80 positions.
“Etsy's business has evolved significantly over the past 12 years and, while decisions like these are never easy, the Board is confident that this initiative will give the Company greater focus and agility in the near term, while allowing the Company to continue expanding in key growth areas,” Dickerson said.
Earlier on Tuesday, Hedge fund Black-and-White Capital also called on Etsy to explore a sale, saying that the Brooklyn-based company's sales growth had slowed while costs had increased. Black-and-White owns about 2 percent of Etsy.
“Although a challenging February contributed to lower than anticipated first quarter results, I am confident that the fundamental strength of Etsy's business and its unique competitive position will drive long-term growth for all stakeholders," Dickerson added.
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