The marketplace for hand-crafted and artisan goods has 1.6 million sellers and 25 million customers.

Sales on Etsy Inc., the operator of an online marketplace for craft goods, grew 18.4% in Q1, driven by 12.3% growth in sellers and 20.1% increase in the number of customers on its site compared with a year ago.

In the first quarter that ended March 31, sales on Etsy’s marketplace, which the company refers to as gross merchandise sales, increased to $629.85 million from $531.92 million in Q1 2015. Without the impact of currency fluctuations, Etsy says gross merchandise sales would have increased 19.1%.

Mobile continues to be top of mind for Etsy, as more consumers visit Etsy.com through mobile devices, CEO Chad Dickerson said on a call with investors discussing Q1 results. Mobile represented about 63% of Etsy’s website visits in Q1, compared with about 59% a year ago, and consumers purchased 47% of total sales through mobile devices, up from 43% a year ago.

“We continued to narrow the gap between mobile business and mobile gross merchandise sales, which we view as a key data point for the success of our Etsy Everyday strategy,” Dickerson said, according to a transcript from SeekingAlpha. Etsy’s mobile app, which it launched in 2011, has had 35 million downloads, he said.

Revenue, which Etsy generates from listing fees, seller services and commissions on sales, grew 39.8% in Q1 compared with a year ago. Revenue from seller services alone grew 59.6% year over year.

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Seller services revenue represented 53.2% of revenue in Q1, compared with 43.6% in Q1 2015. Etsy generates revenue from sellers with such services as promoted listings in search results, credit card processing fees and by providing shipping labels. The marketplace in April launched a new seller service, Pattern by Etsy, which helps sellers create their own custom websites in addition to their shops on Etsy. More than a third of Etsy sellers are interested in opening an e-commerce site of their own and more than half sell in other online channels with Etsy being their largest sales channel, Dickerson said on the call.

Etsy added other seller features during the quarter, too, including Shop Videos and Shop Home. Shop Videos lets sellers record, edit and upload videos to share on their Etsy shops. Shop Home pages, the name for a seller’s shop on Etsy, were redesigned in Q1, and are more customizable and mobile-friendly, the marketplace says.

“We’ve heard from our buyers that they’re more likely to purchase an item when they know the story about a shop and the people behind it,” Dickerson said. “At the same time, sellers have expressed interest in having more creative control over their Etsy shops, promoting their brands and standing out in the marketplace.”

For the  quarter ended March 31, Etsy, No. 23 in the Internet Retailer 2016 Top 500 Guide, reports:

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  • Revenue of $81.85 million, up 39.8% from $58.54 million a year ago.
  • Seller services revenue of $43.533 million, up 59.6% from $27.279 million.
  • Marketplace revenue, or revenue from listing fees and commissions from sellers, of $35.73 million, up 18.5% from $30.151 million.
  • Active sellers numbered  1.603 million, up 12.3% from 1.428 million.
  • Active buyers numbered 25.027 million, up 20.1% from 20.837 million.
  • Net income of $1.19 million compared with a $36.6 million loss in Q1 2015.
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