TIME Earnings

Etsy Stock Crashes After Reporting Huge Quarterly Loss

Etsy IPO Opens On Nasdaq
Paul Zimmerman—Getty Images General atmosphere as Etsy rings the Nasdaq Opening Bell in Celebration of IPO at Nasdaq on April 16, 2015 in New York City.

The online crafts marketplace disappointed investors with its first earnings report after its initial public offering last month.

Etsy’s stock tumbled as much as 18% Tuesday after the online crafts marketplace delivered weak quarterly results.

The company reported a quarterly loss of $36.6 million, a seven-fold increase from the $500,000 loss in the same quarter one year ago, the Wall Street Journal reports. Etsy blamed the bigger loss on a tax provision linked to corporate restructuring.

Esty also reported a 44% increase in quarterly revenue to $58.5 million, narrowly missing Wall Street forecasts of $59 million.

The results were Etsy’s first quarterly report since going public on April 16. On the first day of trading, the company’s shares opened at $31, about double its IPO price of $16. In after-hours, following the earnings report Tuesday, Etsy’s stock plunged to around $17. The shares had closed at $21 in regular trading.

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