Etsy Earnings Miss Q1 Estimates, Face Masks Drive Q2 Top-Line Growth

Etsy (NASDAQ: ETSY), the online marketplace for everything made from home-creators, had high top-line growth in the first quarter of 2020, with a 34.7% increase in revenue. Gross merchandise sales (GSM) increased 32.6% year over year. Earnings, however, were not in line with expectations, coming in at $0.10.

Gross profits increased 24.8% year over year, but gross margin was down 500 basis points to 63.9%. Operating expenses increased 41.4%, mostly due to employee-related expenses. Net income decreased 60.3% year over year to $12.5 million, with a loss of $9.3 million, or $0.08 per share, due to foreign exchange.

Image source: Getty images.

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Source Fool.com