Etsy posts increase in Q2 revenue, but profits narrow

Online marketplace Etsy has reported an increase in revenue but drop in profit in the second quarter.

The US e-commerce giant posted a 7.5 percent increase in revenue to 628.9 million dollars in the three months to June 30.

That came as its net profit narrowed to 61.9 million dollars from 73.1 million dollars the prior year.

Meanwhile, consolidated gross merchandise sales (GMS) was largely flat at 3 billion dollars - or down 0.6 percent.

Etsy marketplace GMS fell 0.7 percent to 2.6 billion dollars.

Chief executive Josh Silverman said in a statement: “The Etsy marketplace's active buyers reached an all-time high in the second quarter, signaling the relevance of our brand and our ability to create opportunities for our sellers.

“This growth in buyers helped our core marketplace return to year-over-year GMS growth in May and June, and we are pleased to see GMS growth continue into the beginning of the third quarter.”

Looking ahead at the third quarter, Etsy expects revenue of between 610 million dollars and 645 million dollars, and GMS of between 2.95 billion dollars and 3.10 billion dollars.

It expects adjusted EBITDA margin of between 27 percent and 28 percent.