Earnings roundup: Etsy shares tank with job cuts on deck, GoDaddy Q1 solid
Etsy delivered flat first quarter earnings and announced that CEO Chad Dickerson is stepping down as of May 3. Etsy board member Josh Silverman is slated to replace Dickerson as chief executive.
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The Brooklyn-based crafts vendor also announced that it plans to eliminate approximately 80 jobs, or eight percent of its total workforce, as it looks to make expense reductions. John Allspaw, Etsy's chief technology officer, is also leaving the company.
"Early in the second quarter of 2017, we also looked for opportunities to increase efficiency and streamline our cost structure," the company said. "As a result of this process, we have identified savings that will be realized through a combination of headcount reductions and a reduction in internal program expenses."
As for the numbers, Etsy reported a Q1 net loss of $421,000, or a penny a share.
Non-GAAP earnings were flat at zero on revenue of $96.9 million, up 18.4 percent from the previous year. Wall Street was expecting revenue of $ 98.4 million million.
"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 said in prepared remarks.
Small business domain host GoDaddy also reported first quarter financial results Tuesday.
For Q1, the company delivered a net loss of $3.1 million, or a penny a share, on revenue of $489.7 million, up 12.9 percent from a year ago. By segment, domains revenue was up 10 percent to $240.8 million, hosting revenue was $178.3 million and business applications was $70.6 million.
Wall Street was expecting second quarter sales of $487.9 million and a net loss of six cents a share.
"We are off to a strong start in 2017 with the delivery of GoCentral, our new mobile-optimized website builder, and the acquisition of Host Europe Group, which significantly expands our presence internationally," said GoDaddy CEO Blake Irving. "We continue to see tremendous opportunity for solid growth over the long-term, as we expand both our product offerings and the markets we serve."
For the current quarter, GoDaddy expects revenue in the range of $548 million to $553 million. Analysts are looking for at least $545 million in revenue. GoDaddy's shares were up just over four percent in late trading.