It seems that Etsy entrepreneurs and investors are doing incredibly well, as the company has seen significant increases in a strong Q2 2016 report.
The most recent report has only further solidified the company’s place as one of the best online marketplaces for artisan sellers and smaller online merchants.
The report showed such positive feedback that experts are urging companies to look to Etsy as a model building boutiques focused on artisan goods with sustainable revenue.
Other figures in the report included a total revenue of over $85 million for Q2 2016, above analyst forecasts of $80.6 million. The revenue translates into a 39% year-over-year (YoY) growth for the company in total. The company opened up 94% from its indicated price, and is doing extremely well.
In Q1, Etsy posted its first quarterly profit since becoming a public company in April 2015, but the stock fell soon after as investors began to question its long-term strategy. The company took a few more hits, including one last month in which customers experienced issues and glitches with its third-party payment system.
Despite that, however, the company has risen from the ashes and now thrives in the wake of a “buy” rating issued by Citigroup.
The rating resulted in the biggest spike in company value since July 2015.
Even more impressively, Etsy’s wild success comes in the face of intense competition from online retailing giant Amazon, which launched its own artisan-only marketplace called Handmade at Amazon last summer as a response to Etsy’s initial success.
However, when it came to Amazon’s Q2 2016 earnings report, there was no mention of Handmade at Amazon or its performance this quarter.
Despite Amazon’s impressive global scale and reach, the company has reported low engagement rates in the Handmade at Amazon program, even with heavy promotion and prior success on other marketplaces.
It would seem that no matter the challenge, Etsy is seeing success in its platform.
James Cakmak, an analyst with Monness Crespi Hardt & Co., expressed optimism about the company in a note on July 28. Cakmak said integration with PayPal Holdings Inc. and increased overseas efforts will contribute to its growth.
“We are increasingly becoming constructive on Etsy’s quality of execution,” Cakmak said.