Etsy lifts 2018 guidance after strong first quarter
Etsy has lifted its full-year guidance for the 2018 financial year after reporting a strong first quarter last week.
In the three months ended March 31, 2018, the global online marketplace recorded $861.1 million in gross merchandise sales (GMS), a 19.8 per cent increase over the same period last year.
Revenue was up 24.8 per cent over the same period last year to $120.9 million, while adjusted EBITDA more than doubled to $26.4 million.
This was the third consecutive quarter of growth for Etsy, which was forced to lay off approximately 15 per cent of its total workforce last June as it scaled back marketing spend to refocus on growth initiatives.
Etsy CEO Josh Silverman said the results are evidence of the company’s successful turnaround.
“We believe these results underscore the size of the opportunity ahead for Etsy, as well as the continued momentum we are unlocking from our focused execution,” he said in a statement.
“We are proud of the tremendous progress we have made in a short amount of time executing against our four key initiatives, and believe we are well positioned to capitalize on the many opportunities ahead.”
The four key initiatives include improving trust and reliability, enhancing search and discovery, building world-class marketing capabilities and providing best-in-class seller tools and services.
The global online marketplace lifted its full-year guidance off the back of its strong first quarter results.
Etsy now expects FY18 gross merchandise sales (GMS) to be 16-18 per cent higher than FY17, rather than 14-16 per cent, and revenue to be 22-24 per cent higher than Fy17, rather than 21-23 per cent.
It expects adjusted EBITDA margin to be 21-23 per cent higher than FY17, rather than 20-22 per cent.