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Etsy's IPO filing gives us a peek at its growth metrics. We dive in to see where Etsy's growth is coming from
In the chart above, gross merchandise sales are in blue, and Etsy's revenues are in green. (The company is not yet profitable. It posted a $15 million loss last year as it ramped up spending).
Gross merchandise sales, of course, are driven by consumers who buy items on the site. If you drill down into some of Etsy's growth metrics, it seems to be doing a good job of attracting more and more buyers to the site. The number of active buyers grew 41 percent last year (almost in lockstep with gross merchandise sales) to 19.8 million, while the number of active sellers grew only 26 percent to 1.4 million.
For Etsy, growth has several layers. At the base is gross merchandise sales—how much consumers are buying on the site. As that number goes up, Etsy becomes more important to its sellers, and it can offer specialized services to them. The number of active sellers don't need to grow at the same pace as the number of active buyers.