Etsy Gross Merchandise Sales (GMS) rose 19.1% to $677.2 million in the third quarter year-over-year. GMS is the value of the goods sold on the site. The company raised its guidance (a good sign) for the full year.
Etsy saw more active sellers on the platform in Q3 - 11.3% more year-over-year. And it saw 20.1% year-over-year growth in the number of active buyers. (It's generally good for sellers when buyer growth exceeds seller growth.)
Etsy has figured out how to better monetize its site by offering services for sellers for which it can charge fees - from its earnings press release:
"Total revenue was $87.6 million, up 33.3% year-over-year, driven by growth in both Marketplace and Seller Services revenue. Marketplace revenue grew 18.3%, driven by growth in transaction fee revenue and, to a lesser extent, growth in listing fee revenue. Seller Services revenue grew 50.1% year-over-year and was driven primarily by revenue growth in Direct Checkout, which continued to benefit from the integration of PayPal."
Etsy is being careful about spending on marketing (Wall Street probably likes this, but sellers love to see marketplaces spend to drive traffic to their listings). And it revealed where some of the spending was going:
"During the third quarter, we continued to gain leverage in our marketing expenses, which, for the third quarter in a row, grew more slowly than revenue. Marketing expenses grew 13.3% year-over-year and were driven by brand marketing spend, particularly on YouTube and Facebook and, to a lesser extent, employee-related costs."
Etsy also announced that its Chief Financial Officer Kristina Salen has decided to leave the company
at the end of March 2017. "Kristina intends to pursue other professional opportunities following a 5-month transition period during which Etsy will focus on recruiting her successor. Etsy intends to launch a formal search immediately."