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Shares of Etsy (ETSY - Get Report) were falling 5.3% to $64.50 Friday after the online marketplace missed Wall Street's second-quarter revenue expectations.

The New York-based company reported earnings of $18.2 million, or 14 cents a share, up from $3.3 million, or 3 cents a share a year ago, and beat analysts' expectations of 13 cents.

Revenue totaled $181.1 million, up from $132.4 million a year ago, but fell short of Wall Street's call for $183.1 million. 

Etsy increased its revenue guidance for the year, adding $12 million to its previous guidance range, and now expects annual net revenue of $797 million to $809 million.

In the second quarter, active buyers and active sellers accelerated to 19.3% and 17.7% year over year, respectively, the company said.

Last month, Etsy signed a definitive agreement to acquire Reverb, a privately held marketplace for new, used and vintage music gear for $275 million in cash. The transaction is expected to close in late third quarter or early fourth quarter.

Total operating expenses were $104.6 million, up 41% year over year. The increase in operating expenses was driven primarily by marketing expense, Etsy said, specifically the investment in a TV campaign, and an increase in headcount related to product development.

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