Etsy Stock Soars in After-Hours Trading on Impressive Q1 Results

Etsy shares are spiking in after-hours trading following the online marketplace for handmade goods' 2016 first quarter results, which beat analysts' estimates and showed a year-over-year growth.

Author:: U-Jin Lee
Publish date:: May 3, 2016 4:33 PM EDT

NEW YORK (TheStreet) -- Etsy (ETSY) - Get Report shares are surging by 7.26% to $9.91 in after-hours trading on Tuesday, following the online marketplace for handmade goods' 2016 first quarter results reported this afternoon, which beat analysts' estimates and showed a year-over-year growth.

Profit of a penny a share was higher than Wall Street's projections of a loss of 2 cents a share and better than the loss of 12 cents a share Etsy reported the year prior.

Revenue surged by 39.8% year-over-year to $81.8 million, surpassing forecasts of $75.15 million.

Overall, results were boosted by sales growth in both marketplace and seller services, up 18.5% and 59.6%, respectively.

"Our financial results in the first quarter were driven by our strong execution," CEO Chad Dickerson stated.

Looking ahead, the company said it will benefit from the launch of its newest paid seller service called Pattern, which allows Etsy sellers to customize their websites.