Online marketplace Etsy's (NASDAQ: ETSY) second quarter highlighted more strong growth, driven by robust gains in gross merchandise sales (GMS) volume and in the number of active buyers and sellers on its platform.
"Our excellent second quarter growth in revenue and GMS reflects solid execution across our portfolio of product and marketing investments and the strength of our core marketplace," said Etsy CEO Josh Silverman in the company's second-quarter earnings release.
Here's a look at the results.
Image source: Etsy.
Etsy's second-quarter results: The raw numbers
Earnings per share
Data source: Etsy second-quarter earnings release.
What happened with Etsy this quarter?
- Etsy revenue increased 37% year over year, a deceleration from 40% growth in Q1.
- Net income soared 439% to $18.2 million, translating to EPS of $0.14.
- Marketplace revenue increased 47.2%.
- Seller services revenue rose 16.2%.
- Active buyers increased 19.3%, an acceleration from 18.3% growth in Q1.
- Active sellers were up 17.7%, also an acceleration from 13% growth in the prior quarter.
- Total GMS volume rose 21.4%, an acceleration compared to 18.9% growth in Q1.
What management had to say
Perhaps in a nod to Etsy's accelerating growth in active buyers and sellers and its strong gross merchandise sales volume, Silverman said: "We are making great progress improving our product experience and marketing capabilities, and it is paying off."
Other items from Etsy's second quarter that management highlighted in its earnings release include a record high for its pace of product experiments. Further, the company made "significant strides in search and discovery," including a more personalized and dynamic homepage to make it easier for buyers to continue a previous shopping session. The company also said it improved its mobile app by "incorporating signals and nudges throughout the app experience to fuel growth on our highest converting device."
Silverman was optimistic about the company's future, noting that Etsy has "a number of bold new initiatives which we believe will fuel our growth even further, including enhancing the shipping experience, helping our sellers better market and grow their businesses, and our planned acquisition of Reverb."
The company lifted its outlook for full-year GMS volume and revenue growth. Now Etsy expects GMS volume to increase 20% to 22% year over year in 2019, up from a previous forecast for 18% to 21% growth. Management expects revenue in 2019 to rise 32% to 34%, higher than previous guidance for 30% to 32% growth.
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This article was originally published on Fool.com