When Etsy went public with a business model that promised to do good first and turn profits later, a bunch of people bought the stock thinking that they were getting in on a burgeoning e-commerce play.
But after a few months, most of the market looked at Etsy's financial results and said "Oh shit, you guys were serious?"
Etsy the company was not capable of pleasing ETSY the stock because one was out to create the notion of a thriving public B Corporation, which was hard for Wall Street to really comprehend because it was distracted by all that red it was looking at all the time. But then, a few months ago, Etsy decided to overhaul its leadership and become a real company that cares about stuff like operations and profit, with less focus on using its money to do some good.
And yesterday, Etsy's new team released their first earnings result.
Etsy Inc. on Thursday reported second-quarter net income of $11.7 million, after reporting a loss in the same period a year earlier.
On a per-share basis, the Brooklyn, New York-based company said it had net income of 10 cents.
That's what the kids call a "Surprise profit." Etsy is making money, you guys, a reality that we always assumed was years down the road, after ETSY had become a $4 per share day trader special that everyone had basically forgotten about. But it turns out that it is happening now after Etsy engaged in some decidedly not crunchy layoffs, slashed other costs and focused a bit on product and revenue. For any other company, that's just some Management 101, but for ETSY it's a ray of sunshine that could stave off a real deal crisis at Brooklyn's online flea market.
And what's even more incredible to us is that Etsy - long our favorite exemplar of how tech startups should not behave after going public - is now perhaps a shining example of how to pivot and save your own ass if you're a tech startup that should never have gone public.
What is even real anymore?