Business results reported by the craft and quirky marketplace tonight show that Etsy in Q118 enjoyed strong growth in sales, buyer and seller activity and an overall positive performance. It can easily be viewed as evidence that the once wobbly business has perhaps turned the corner under the leadership of the now not so new CEO Josh Silverman. But have the changes dented merchant enthusiasm for selling on the marketplace?
GMS (gross merchandise sales) clocked in at $861.1 million USD in the first quarter of 2018 and that is up 19.8% compared with the same period in 2017. GMS growth also accelerated compared with the fourth quarter of 2017, making it the third consecutive quarter of increasing sales. Etsy in Q118 also enjoyed 9.4% year-over-year growth in active sellers and 16.9% year-over-year growth in active buyers.
We are pleased to report that GMS and revenue growth accelerated for the third consecutive quarter in Q1. 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. 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.
– Josh Silverman, Etsy, Inc. CEO
Over the course of the past year, in the face of diminished revenues post IPO, Etsy has worked hard to find the right course for the business. It has meant a new CEO, many staff redundancies and the closure of initiatives that they judged non-critical to the core business, including Etsy Studio. Such changes are never easy but they do seem to be working out.
What’s not clear, and these are financial results after all, is the extent to which the changes and new path are welcomed by the all-important community of Etsy artisans that really make the marketplace what it is. Etsy merchants are a famously passionate bunch and not all have been happy with recent developments.
You can read, mark and inwardly digest the full results from Etsy in Q118 here.