Shares of online marketplace Etsy (NASDAQ:ETSY) increased as much as 17.7% on Friday following the company's better-than-expected second-quarter financial results after market close on Thursday. The stock is up 11.3% at 2:21 p.m. EDT.
For its second quarter, Etsy reported revenue and earnings per share of $101.7 million and $0.10, respectively. These results both came in ahead of analysts expectations. Analysts' consensus estimates for Etsy's second-quarter revenue and earnings per share (EPS) were $101.2 million and a loss of $0.03, respectively.
Management noted that the company has "increased the velocity of product experiments and launches" since May, when Etsy replaced its CEO.
Driven by its more rapid deployment of product launches, Etsy expects that its year-over-year growth in gross merchandise sales (GMS) volume will accelerate in its third quarter compared to the metric's growth in Q2.
Further, Etsy CFO Rachel Glaser said the company also expects improved profitability going forward: "We are confident that our newly streamlined organizational structure will allow us to accelerate our product launch cadence while generating cost efficiencies, resulting in a positive impact on our Adjusted EBITDA margins going forward."