Etsy, Inc., which builds markets, services and economic opportunity for creative entrepreneurs, today announced financial results for its fourth quarter and full year ended December 31, 2016.
“We exited 2016 with strong momentum,” said Chad Dickerson, Etsy, Inc. CEO and Chairman. “We delivered fourth quarter and full year financial results that exceeded our guidance, introduced new products such as Google Shopping and launched our first-ever global brand campaign. We kicked off 2017 by unveiling Etsy Studio, a new global craft supplies market, and by revamping the seller experience with the launch of our new streamlined seller dashboard, Shop Manager. These announcements underscore our bold, ambitious efforts to support creative entrepreneurs and we believe they create new long-term growth opportunities for Etsy. We are very excited about our future.”
Fourth Quarter 2016 Operational Highlights
GMS was $865.2 million, up 16.7% compared with the fourth quarter of 2015. On a currency-neutral basis (excluding the direct impact of currency translation on GMS from goods that are not listed in U.S. dollars) GMS growth in the fourth quarter of 2016 would have been 18.2%. GMS growth was driven by 11.8% year-over-year growth in active sellers and 18.8% year-over-year growth in active buyers.
Continuing the trend we’ve seen for multiple quarters, mobile visits once again grew faster than desktop visits. Percent mobile visits was approximately 65% compared with approximately 61% in the fourth quarter of 2015 and flat compared with the third quarter of 2016. Percent mobile GMS was approximately 49% compared with approximately 44% in the fourth quarter of 2015, and flat compared with the third quarter of 2016.
Year-over-year conversion rates increased across desktop, mobile web and mobile app for the fifth consecutive quarter. During the fourth quarter, the year-over-year growth in mobile GMS together with the strength in overall mobile conversion rates resulted in a slight narrowing of the gap between mobile visits and mobile GMS. Mobile app and mobile web GMS each continued to grow significantly faster than desktop GMS during the fourth quarter.
Percent international GMS was 30.4% in the fourth quarter of 2016, up from 29.2% in the fourth quarter of 2015, and flat compared with the third quarter of 2016.
During the fourth quarter of 2016, percent international GMS was largely driven by continued robust GMS growth between U.S. buyers and international sellers and GMS growth between buyers and sellers outside of the U.S., both in the same country and cross-border.
GMS growth between international buyers and sellers in the same country remained the fastest growing category of international GMS. GMS between international buyers and sellers in the same country grew 44% year-over-year during the fourth quarter, and has grown from our smallest GMS category to be more similar in size to GMS between international buyers and sellers in different countries; both of these GMS categories are now larger than GMS between U.S. sellers and international buyers.
We believe the robust growth in GMS between international buyers and sellers in the same country demonstrates the progress we are making on our strategy to build and deepen local Etsy communities around the world.
GMS between U.S. sellers and international buyers declined 8% in the fourth quarter. While we continue to believe that the decline in this GMS category is indicative of the indirect impact of fluctuating currency exchange rates on international buyer behavior, given this GMS category’s size relative to other GMS categories, the indirect impact of fluctuating currency has become less of a headwind to our GMS growth.
See the full press release on the Etsy website, including recent operational highlights, key product developments for 2017, fourth-quarter 2016 financial highlights, guidance, and an update on its search for a Chief Financial Officer to replace Kristina Salen, who previously announced her planned departure at the end of this month.
Source: Etsy Press Release