NEW YORK (TheStreet) -- Etsy (ETSY) - Get Report stock is up by 6.76% to $7.89 on heavy trading volume on Wednesday afternoon, after the company reported better-than-expected 2015 fourth quarter revenue results.
After the market close on Tuesday, the online marketplace operator reported a loss of 4 cents per share, while analysts were expecting a loss of 1 cent per share. However, revenue of $87.9 million topped Wall Street's forecast for revenue of $86.46 million.
Additionally, Etsy projected a three-year revenue compound annual growth rate between 20% to 25% during 2016 to 2018.
However, analysts believe the company faces long-term challenges, the Wall Street Journal reports.
"We believe the stock may see a relief rally from better guided [gross margins]," Darren Aftahi, an analyst at ROTHCapitalPartners, said in a note, according to the Journal. "However, decelerating growth in almost every metric...leaves our thesis unchanged, and us cautious on long-term guided operating leverage."
So far today, 4.61 million shares of Etsy have traded, well above the company's 30-day average of 1.34 million shares.