Shares of Etsy Inc. fell more than 15% late Tuesday after the online marketplace company swung to a loss in the first quarter, missed quarterly sales expectations, and announced its chief executive is stepping down. Etsy said it lost $421,000 in the first quarter, versus a net income of $1.2 million in the first quarter of 2016. Revenue hit $96.9 million, from $81.85 million a year ago. Analysts polled by FactSet had expected per-share earnings of 1 cent on sales of $98.4 million. Etsy also said its board of directors has appointed Josh Silverman, on the board since November, as the company's new chief executive, effective Wednesday. Josh replaces Chad Dickerson, who Etsy said will step down as CEO and board of directors chair. Dickerson will serve in an advisory role to the company through the end of May. Etsy also said that John Allspaw, chief technology officer, will be leaving the company, and Mike Brittain, VP of Engineering, will be named interim CTO. The company said its new management team will review the company's 2017 guidance, and a new guidance is planned in conjunction with second-quarter results. Shares of Etsy had ended the regular trading day up 2.9%.
Continue Reading Below
Copyright © 2017 MarketWatch, Inc.