Etsy, Inc. (ESTY) saw its loss narrow to $2.40 million, or $0.02 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $6.89 million, or $0.06 a share.
Revenue during the quarter surged 33.28 percent to $87.56 million from $65.70 million in the previous year period. Gross margin for the quarter expanded 331 basis points over the previous year period to 66.52 percent. Operating margin for the quarter period stood at positive 3.05 percent as compared to a negative 2.54 percent for the previous year period.
Operating income for the quarter was $2.67 million, compared with an operating loss of $1.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.06 million compared with $6.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 544 basis points in the quarter to 14.91 percent from 9.47 percent in the last year period.
"Our third quarter results reflect the strength of our markets that connect people around the world and our seller services platform that is specifically focused on helping creative entrepreneurs start, scale and manage their businesses," said Chad Dickerson, Etsy, Inc. CEO and Chair. "Based on our year-to-date performance, which has been strong across all of our key metrics, we are raising our full year guidance. We're excited about our progress this quarter and that we are laying more groundwork to deliver long-term results that will benefit our community, including our shareholders."
Operating cash flow improves significantly
Etsy, Inc. has generated cash of $28.24 million from operating activities during the nine month period, up 48.58 percent or $9.23 million, when compared with the last year period.
The company has spent $111.99 million cash to meet investing activities during the nine month period as against cash outgo of $18.14 million in the last year period.
Cash flow from financing activities was $3.75 million for the nine month period, down 98.11 percent or $195.29 million, when compared with the last year period.
Cash and cash equivalents stood at $188.03 million as on Sep. 30, 2016, down 29.39 percent or $78.25 million from $266.28 million on Sep. 30, 2015.
Working capital decreases marginally
Etsy, Inc. has witnessed a decline in the working capital over the last year. It stood at $275.83 million as at Sep. 30, 2016, down 1.38 percent or $3.87 million from $279.70 million on Sep. 30, 2015. Current ratio was at 4.56 as on Sep. 30, 2016, down from 5.02 on Sep. 30, 2015.
Days sales outstanding went up to 42 days for the quarter compared with 41 days for the same period last year.
At the same time, days payable outstanding went up to 21 days for the quarter from 17 for the same period last year.
Debt moves up
Etsy, Inc. has witnessed an increase in total debt over the last one year. It stood at $11.89 million as on Sep. 30, 2016, up 8.92 percent or $0.97 million from $10.91 million on Sep. 30, 2015. Total debt was 2.09 percent of total assets as on Sep. 30, 2016, compared with 2.03 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.03 as on Sep. 30, 2016, when compared with the last year.
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