Etsy posts solid Q2 revenues after raising seller fees
Etsy posted its second quarter financial results on Monday, beating the market's revenue expectations. The revenue growth followed the Brooklyn-based firm's decision to raise fees on its sellers for the first time ever.
Etsy earningscame to 3 cents per share. Revenue climbed 30.2 percent year-over-year to $132.4 million.
Wall Street was looking for earnings of 4 cents per share on revenues of $127.12 million.
Etsy's GMS (sales on its platform) came to $901.7 million in Q2, up 20.4 percent year-over-year. In another good sign for the marketplace, the year-over-year aggregate conversion rate increased for the third consecutive quarter with strong performance across desktop, mobile web and the Etsy app.
"Etsy delivered another quarter of strong performance, including our fourth consecutive quarter of GMS acceleration, continued evidence that increased investments in our core marketplace are working," CEO Josh Silverman said in a statement. "We announced the first pricing change in the history of the company, further improving our ability to reinvest in our seller community."
The increased seller fee was announced in June and went into effect on July 16. Etsy said it would use the boost in revenues to invest in marketing strategies, improve customer support, and drive product innovation.
Etsy has raised its guidance for full-year 2018 revenue growth to between $587 million and $596 million.