|Tue May 2 2017 17:14:40|
Shakeup at Etsy as CEO Steps Down
By: Ina Steiner
Drama surrounded Etsy today, nearly obscuring its first-quarter earnings release. First, an activist investor issued a press release pressuring the company to make some big changes, even suggesting the company put itself up for sale
Etsy then announced CEO Chad Dickerson would be stepping down, replaced by a candidate who couldn't be more different from the low-key touchy-feely CEO he's replacing. Josh Silverman was at the center of the eBay-Craigslist corporate governance lawsuit - as EcommerceBytes 411 reported in November when Silverman joined the Etsy board, he had been sued by Craigslist for breach of fiduciary duty.
Etsy is also separating the roles of CEO and Chairman. As Silverman becomes CEO officially on Wednesday, Fred Wilson will come on board as Chairman. Wilson joined the Etsy Board in June 2007 and has served as lead independent director since October 2014.
Etsy's Chief Technology Officer John Allspaw is also leaving the company.
First Quarter Earnings:
And Etsy reported earnings today. It saw year-over-year growth of Gross Merchandise Sales (GMS) of 14.2% in the first quarter.
Etsy grew total revenue 18% year over year in the first quarter of 2017 to $96.9 million. Markets revenue grew 14.1%, while Seller Services revenue grew 23.9% year-over-year, driven primarily by revenue growth in Etsy Payments.
Net loss for the first quarter of 2017 was $0.4 million, compared with net income of $1.2 million in the first quarter of 2016. "Etsy's net loss in the first quarter of 2017 included interest expense associated with the build-to-suit lease accounting related to our new headquarters, a $2.8 million foreign exchange gain and an income tax benefit of $1.1 million, all primarily non-cash."
You can find the full press release on this page
of the Etsy Investor Relations website.