ETSY INC (ESTY) saw its loss widen to $21.38 million, or $0.19 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.23 million, or $0.04 a share. Revenue during the quarter grew 25.39 percent to $110.21 million from $87.90 million in the previous year period. Gross margin for the quarter expanded 78 basis points over the previous year period to 66.42 percent. Total expenses were 96.87 percent of quarterly revenues, up from 90.42 percent for the same period last year. That has resulted in a contraction of 644 basis points in operating margin to 3.13 percent.
Operating income for the quarter was $3.45 million, compared with $8.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.28 million compared with $14.05 million in the prior year period. At the same time, adjusted EBITDA margin contracted 212 basis points in the quarter to 13.86 percent from 15.98 percent in the last year period.
"We exited 2016 with strong momentum," said Chad Dickerson, Etsy, Inc. chief executive officer and chairman. "We delivered fourth quarter and full year financial results that exceeded our guidance, introduced new products such as Google Shopping and launched our first-ever global brand campaign. We kicked off 2017 by unveiling Etsy Studio, a new global craft supplies market, and by revamping the seller experience with the launch of our new streamlined seller dashboard, Shop Manager. These announcements underscore our bold, ambitious efforts to support creative entrepreneurs and we believe they create new long-term growth opportunities for Etsy. We are very excited about our future."
ETSY INC expects revenue to grow in the range of 20 percent to 22 percent for the financial year 2017.
Operating cash flow improves significantly
ETSY INC has generated cash of $46.76 million from operating activities during the year, up 60.07 percent or $17.55 million, when compared with the last year. The company has spent $135.43 million cash to meet investing activities during the year as against cash outgo of $23.28 million in the last year.
Cash flow from financing activities was $5.81 million for the year, down 97.09 percent or $193.80 million, when compared with the last year.
Cash and cash equivalents stood at $181.59 million as on Dec. 31, 2016, down 33.05 percent or $89.65 million from $271.24 million on Dec. 31, 2015.
Working capital increases marginally
ETSY INC has recorded an increase in the working capital over the last year. It stood at $287.02 million as at Dec. 31, 2016, up 2.90 percent or $8.09 million from $278.93 million on Dec. 31, 2015. Current ratio was at 4.42 as on Dec. 31, 2016, down from 4.48 on Dec. 31, 2015.
Debt comes down
ETSY INC has recorded a decline in total debt over the last one year. It stood at $12.12 million as on Dec. 31, 2016, down 8.01 percent or $1.06 million from $13.18 million on Dec. 31, 2015. Total debt was 2.09 percent of total assets as on Dec. 31, 2016, compared with 2.38 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.04 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
