Etsy Shares Plummet On Unexpected Quarterly Loss

Shares of Etsy Inc. fell 12% in after-hours trade after the company reported an unexpected loss in its first earnings report as a public company. Etsy reported a net loss of $36.6 million, or 84 cents a share, compared with a year-earlier loss of $500,000, or one cent a share. Analysts had been expecting breakeven earnings per share, according to FactSet data. The e-commerce site, which sells homemade goods, reported revenue of $58 million, up from $40.5 million last year, meeting expectations. Gross merchandise sales increased 28% year-over-year to $531.9 million due to a 26% increase in active sellers and a 36.5% increase in active buyers. However, total operating expenses climbed 73% year-over-year to $42.7 million, due primarily to marketing as it prepped for its IPO. The company said it plans to continue to increase the pace of hiring and marketing spend in the second quarter.