Brooklyn-based crafts vendor Etsy delivered another round of surprise profits this quarter.
The online artisanal marketplace reported a Q3 net income of 10 cents a share, or $25.8 million, reversing a net loss of 6 cents a share, or $2.4 million, a year ago. Revenue was $106.4 million, up 21 percent from the previous year. Wall Street was expecting earnings of 6 cents a share on revenue of $104.95 million.
The company said its Gross Merchandise Sales (GMS) were $766.4 million, up 13.2 percent year over year. Etsy said the GMS increase was fueled by the launch of new features and tools on its platform.
Etsy ended the quarter with just more than 31 million active buyers, up from 27 million in 2016. The increase in active buyers shows that Etsy is standing its ground amidst competition from Amazon Handmade, the e-commerce giant's own specialized marketplace for handicrafts launched in 2015. Its number of active sellers, however, has remained steady at 1.89 million, compared to 1.7 million a year ago.
Etsy announced a series of layoffs earlier this year in an effort to create a more nimble cost structure. Last quarter, Esty said the layoffs helped the company identify about $20 million in 2017 expense reductions, which it expected to lead to $35 million in annualized cost savings.
"We will continue to make progress on our strategy to own 'special' shopping occasions by delivering a more engaging experience for our buyers, and providing our sellers with the tools they need to compete," said Etsy CEO Josh Silverman. "Looking ahead, we believe our sharpened focus will enable us to build on our momentum, support our sellers throughout the holiday season, and advance our new mission to keep commerce human."
In terms of guidance, Etsy expects full year revenue growth in the range of 18 percent to 20 percent.