Sales on Etsy Inc.’s marketplace for handcrafted goods grew 14.4% in its third full year as a public company. Comparatively, Etsy’s sales have grown approximately 20% for the last two years.
Etsy’s sales, which the marketplace calls gross merchandise sales, were $3.25 billion in 2017, up from $2.84 billion in 2016. In the fourth quarter ended Dec. 31, gross merchandise sales crossed $1 billion, growing 17.9% to $1.02 billion from $865.2 million in the same period a year ago.
Etsy is increasingly generating revenue from services it offers sellers. Total revenue, which Etsy generates from listing fees, seller services and commission on sales, jumped 20.9% to $441.23 million from $$364.97 million in 2016. Seller services revenue, which Etsy receives from such services as promoted listings, credit card processing and web services, grew 28.7% in 2017 and represented nearly 60% of total revenue. The rest of its revenue, which Etsy calls marketplace revenue, increased 13.5%. Marketplace revenue comes from the 20-cent listing fee Etsy charges and the 3.5% commission it takes on every sale.
For the year, sales from mobile devices represented 51% of total sales, up from 49% in 2016. International sales accounted for 33% of total sales, compared with 30% last year.
The number of active sellers increased to 1.93 million from 1.75 million a year ago. Active buyers increased to 33.4 million from 28.6 million.
Etsy is No. 13 in the Internet Retailer 2018 Online Marketplaces database.
For the fourth quarter ended Dec. 31, Etsy also reports:
- Revenue of $136.27 million, up 23.6% from $110.2 million.
- Marketplace revenue of $54.25 million, up 15.6% from $46.9 million.
- Seller services revenue of $82.32 million, up 33.4% from $61.7 million.
- EBITDA (earnings before interest, taxes, depreciation and amortization) of $34.82 million from $15.28 million.
- Net income of $44.75 million, compared with a $21.4 million loss. Etsy’s net income in the quarter included a tax benefit of $26.5 million primarily due to the impact of the U.S. Tax Cuts and Jobs Act of 2017, $2.2 million in interest expense associated with the build-to-suit lease accounting related to its new headquarters and a foreign exchange gain of $2.2 million.
For 2017, Etsy also reports:
- EBITDA of $80.01 million up from $57.1 million.
- Net income of $81.8 million compared with a loss of $29.9 million a year ago.