Etsy
A sign advertising the online seller Etsy Inc is seen outside the Nasdaq market site in Times Square following Etsy's initial public offering (IPO) on the Nasdaq in New York, April 16, 2015. Reuters/Mike Segar

Etsy has posted a loss of US$21.4 million (AU$27.9 million) in its fourth quarter. The crafts supplier said it sustained a loss of 19 US cents on a per-share basis. Earnings, when adjusted for non-recurring costs, stood at 3 US cents per share.

In contrast, average estimates gathered from four analysts surveyed by Zacks Investment Research was 1 US cent per share. The crafts supplier was down by 5.24 percent to US$12.12 (AU$15.8) per share in trading soon after its earnings report came out. Etsy is currently a Zacks Rank #3 (Hold). Meanwhile, analysts surveyed by FactSet forecast earnings of 2 US cents a share.

Etsy’s fourth quarter revenue was US$110.2 million (AU$143.8 million). This comes as an increase of 25.4 percent for the same period last year. The craft supplier’s gross profit also saw an enhancement, increasing by 26.9 percent year-over-year to reach US$73.2 million (AU$95.5 million).

Etsy reported that it lost US$29.9 million (AU$39 million), or 26 US cents per share. Its revenue was US$365 million (AU$476.3 million). Meanwhile, its shares have increased by almost 3 percent since the start of this year. On Tuesday, the company’s shares reached US$12.12 (AU$15.8) – a jump of almost 53 percent over the last year.

In April, the company plans to launch a market aimed at craft supplies. In addition to supplies and materials, buyers will also be able to find tutorials, manuals and craft ideas. Through a dedicated medium, Etsy also plans to offer its sellers the facility to track orders, manage inventory, view metrics and interact with buyers.

"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," CEO and chairman Chad Dickerson said. "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.”

The company will be looking to expand its revenue growth from 20 percent to 22 percent – amounting to a range of US$438 million (AU$571.6 million) to US$445.3 million (AU$581.1 million) – in the fiscal year 2017. On the other hand, analysts forecast the revenue to be US$445.7 million (AU$581.7 million).

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