Etsy Inc. (ETSY – Free Report) just released its first quarter 2017 financial results, posting break-even earnings and revenues of $97 million. Currently, Etsy is a Zacks Rank #3 (Hold), and is down 15.72% to $9.60 per share in after-hours trading shortly after its earnings report was released.

Etsy:

Met earnings estimates. The company posted earnings of $0.00 per share—or break-even—matching the Zacks Consensus Estimate.

Missed revenue estimates. The company saw revenue figures of $97 million, missing our consensus estimate of $99 million.

Etsy’s total revenue was $97 million, up 18.4% year-over-year. The company posted gross profits of $62.2 million, up 15.4% sequentially. However the company reported an overall first quarter loss of $421,000.

The Brooklyn, New York-based company’s gross merchandise sales were $719.0 million, up 14.2%. On a non-GAAP basis, the company’s adjusted EBITDA declined 34.1% to $9.7 million. Mobile-based GMS accounted for more than 50% of the Etsy’s overall GMS for the first time.

Etsy is currently in a leadership transition period. Therefore the company will not provide guidance until the company posts its second quarter results.

“During the first quarter, we laid the groundwork for key initiatives and launches that will enhance Etsy’s capabilities and offerings for sellers and buyers, strengthen the brand and help position Etsy for long-term growth,” Chad Dickerson, who is stepping down as Etsy CEO, said in a press release.

“Etsy is actively investing in machine learning, search and marketing to attract new buyers and drive purchase frequency. Additionally, we just completed the successful launch of Etsy Studio. Although a challenging February contributed to lower than anticipated first quarter results, I am confident that the fundamental strength of Etsy’s business and its unique competitive position will drive long-term growth for all stakeholders.”

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