Etsy shares jump 10% after earnings

Etsy shares surged in after-hours trading Tuesday after the company reported an increase in fourth-quarter revenues with an earnings loss.

The online marketplace for handcrafted goods reported an adjusted loss of $0.04, while Wall Street had expected adjusted earnings per share (EPS) of $0.01, according to Bloomberg. Revenues came in at $87.8 million, up 35% quarter-on-quarter, and higher than the expectation for $86.7 million.

Gross Merchandise Sales rose 21% compared to the fourth quarter of 2014.

Etsy had 24 million active buyers last year, up from 20 million in 2014. Concern mounted as Amazon launched a specialised marketplace for handcrafted products that was seen as a direct threat to Etsy.

Shares rose by as much as 10%. But they had closed down 7% on Tuesday ahead of the release, and had fallen 75% from the April 2015 IPO.

More to come, refresh this page for updates.

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