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Etsy CEO: Q2 Was A 'Breakthrough' Quarter

Jayson Derrick

Etsy Inc (NASDAQ: ETSY) on Aug. 1 reported earnings that came in mixed versus expectations but marks a "breakthrough" quarter, according to company CEO Josh Silverman.

What Happened

Etsy showed a miss on the revenue line while revenue growth on a year-over-year base decelerated from 40% in the first quarter to 37% in the second quarter. Investors showed displeasure with the report by punishing the stock lower throughout Friday's session but Silverman told CNBC's Jim Cramer the company reported a "great quarter."

Beyond the headline numbers, Etsy's fundamentals remained strong, Silverman said during Cramer's "Mad Money" show Tuesday evening. Among the multiple encouraging metrics, gross merchandise sales grew 21% from successful marketing initiatives and an improved delivery process.

Why It's Important

Investors will ultimately view the earnings report as a key point in the company's history as management announced multiple initiatives to support growth. Free shipping will be offered on all orders of $35 or more. This is an aspect of e-commerce buyers expect to receive, the CEO said.

Etsy's 2.3 million sellers will now be able to advertise on the platform in search results to better target the 43 million active buyers.

"Our sellers are hungry to invest in their own success," the CEO told the CNBC audience.

What's Next

Etsy is looking to take a leadership position in emission reduction through setting an example. The company is focused on powering its offices and computing infrastructure through 100% renewable electricity by less year.

Etsy's stock traded around $56.14 per share at time of publication.

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