Etsy 2015 Annual Report Download - page 55

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for income taxes was impacted by the mix of income and losses in jurisdictions with a wide range of tax rates, the amount of non-deductible stock-based
compensation expense and the unrealized loss on our warrant liability.
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Revenue:
Marketplace
$ 78,544
$ 108,732
$ 30,188
38.4%
Percentage of total revenue
62.8%
55.6%
Seller Services
$ 42,817
$ 82,502
$ 39,685
92.7%
Percentage of total revenue
34.2%
42.2%
Other
$ 3,661
$ 4,357
$ 696
19.0%
Percentage of total revenue
2.9%
2.2%
Total revenue
$ 125,022
$ 195,591
$ 70,569
56.4%
GMS increased $584.1 million, or 43.3%, to $1.9 billion in the year ended December 31, 2014 compared to the year ended December 31, 2013.
During the year ended December 31, 2014, mobile GMS increased as a percentage of total GMS to approximately 37%, up from 30% for the year ended
December 31, 2013 as a result of increased mobile traffic and, to a lesser extent, improvements in our mobile offerings for Etsy buyers.
For the year ended December 31, 2014, international GMS increased as a percentage of total GMS to 30.9%, from 28.4% for the year ended December 31,
2013.
Revenue increased $70.6 million, or 56.4%, to $195.6 million in the year ended December 31, 2014 compared to the year ended December 31, 2013, of
which 55.6% consisted of Marketplace revenue and 42.2% consisted of Seller Services revenue.
Marketplace revenue increased $30.2 million, or 38.4%, to $108.7 million in the year ended December 31, 2014 compared to the year ended December 31,
2013. This growth corresponded with a 43.3% increase in GMS to a total of $1.9 billion for the year ended December 31, 2014. As our GMS increased, our
Marketplace revenue increased, primarily due to growth in transaction fee revenue and, to a lesser extent, an increase in listing fee revenue. Active sellers
increased 26.0% to 1.4 million and active buyers increased 41.2% to 19.8 million for the year ended December 31, 2014 compared to the year ended
December 31, 2013.
Seller Services revenue increased $39.7 million, or 92.7%, to $82.5 million in the year ended December 31, 2014 compared to the year ended December 31,
2013. The increase in Direct Checkout services revenue reflects continued increases in U.S. Direct Checkout revenue, as well as growth in international Direct
Checkout services as those services were initiated in the second quarter of 2013 and expanded throughout 2014. As of December 31, 2014, we offered Direct
Checkout in 10 currencies, including the U.S. dollar. The increase in Promoted Listings revenue reflects increased adoption during the year in addition to the
re-launch of an updated Promoted Listings product in the third quarter of 2014. The increase in Shipping Label revenue reflects an increase in the number of
Etsy sellers using the service and, to a lesser extent, the introduction of Shipping Labels in Canada in the third quarter of 2014. As of December 31, 2014,
46.1% of active sellers use one or more of our Seller Services, 18.2% of active sellers used Promoted Listings, 36.1% of active sellers used Direct Checkout
and 21.4% of active sellers in the United States and Canada used Shipping Labels.
Other revenue increased $0.7 million, or 19.0%, to $4.4 million in the year ended December 31, 2014 compared to the year ended December 31, 2013. Other
revenue decreased as a percentage of total revenue, however, as Etsy buyers opted to use Direct Checkout for their purchases rather than a third-party
payment processor.
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