Etsy has just filed an S1 form at the Securities and Exchange Commission in the U.S., where it has also revealed how the company is doing.
The company is hoping to raise at least $100 million from the IPO. The amount could be a placeholder as the filing also reveals that it is aiming to reach as much as $300 million.
Reports have speculated that the company could have a value of $2 billion in the public markets. The site now has 1.4 million active sellers and 19.8 million active buyers. It employs 685 people where 51 percent are made up of women.
Total earned revenue reached $195.6 million while a net loss of $15.2 million was incurred in 2014. Currently, the company has $88.84 million in cash, which may be enough for them to last for several more years and as long as they continue their current operating pace.
Etsy also revealed a history of operating losses in the IPO document.
"We incurred net losses of $15.2 million, $0.8 million and $2.4 million for the years ended December 31, 2014, 2013 and 2012 respectively," said Etsy. "As of December 31, 2014, we had an accumulated deficit of $32.4 million. We may not achieve or maintain profitability in the future."
Etsy is expecting to incur a substantial increase in their operating expenses in order to support their future plans. The company has also stated its plan to hire additional employees, enhance the company's marketing efforts, expand business operations, and continue investing in improvements to its platform. These include offering new services and features for their millions of members.
Etsy added that going public also entails expenses, such as legal and accounting expenses, which they don't incur as a private company.
Accel and Union Square Ventures are the company's biggest shareholders at the moment. Total shares held by each company have reached 27 and 15 percent respectively.
Founded in 2005, Etsy has catapulted the "maker movement" toward its success and has become a popular name online when it comes to handmade crafts. The site is parallel with eBay since users can find everything in it, from reclaimed wood furniture to handmade terrariums and a handcrafted necktie with a cat design.
Etsy plans to trade on Nasdaq using the symbol "ETSY." It has stressed in the filing that one of the company's cornerstones is the "authenticity" of its marketplace and connections within the community.
"If we are unable to maintain them, our ability to retain existing members and attract new members could suffer," said Etsy in the regulatory filing.
Photo: Fern | Flickr
