Etsy announced better-than-expected revenues on Tuesday, due to growth in both its seller services and marketplace offerings.
The e-commerce company, which is classified as a “B Corporation,” has struggled to win over Wall Street and beat out the competition. But the company’s shares jumped after it announced revenues of $87.8 million, up more than 35% quarter-on-quarter and higher than the Street’s expectations. Merchandise sales were up 21%, the company reported.
The company reported a per-share earnings loss of 4¢ per share, versus analyst projections of a 1¢ a share gain.
Despite its losses, Etsy shares rose as much as 15% in after-hours trading.
Etsy executives said in a call with investors that it is seeing success on mobile, and will continue to invest in the medium in the coming year. About 61% of visits to Etsy were on mobile in 2015, up from 56% the previous year. To bolster sales on mobile, the company integrated social sign-up, and announced partnerships with mobile wallet services like Apple Pay and Google Wallet.
Etsy CFO Kristina Salen said much of the growth in both seller services and marketplace can be attributed to its Direct Checkout payment service and its integration with PayPal, as well as its Promoted Listings service.
The company released a three-year outlook, projecting revenue growth of 20% to 25%. Going forward, it is looking for ways to bring its sellers’ wares to brick and mortar stores.