Crafts shopping website operator Etsy’s quarterly loss doubled due to higher marketing expenses and the company said these costs would only increase in the current quarter.
The company's marketing costs jumped 77% in the second quarter ended 30 June due in part due to higher spending on product listing ads. Total costs rose 49.3%.
Etsy's European, Middle East and Africa headquarters are based in Dublin’s Digital Hub.
The company said it plans to spend more on marketing in absolute dollars in the third quarter than it did in the second quarter or the year-earlier quarter.
It also said it expects to increase the pace of hiring in the current quarter compared with both the second quarter and the year-earlier quarter.
The company said the strengthening dollar could hurt demand for dollar-denominated goods in the current quarter, which could slow the pace of growth of gross merchandise sales.
Gross merchandise sales, a measure of total value of goods sold, rose 24.6% in the second quarter, driven by a 24.6% growth in active sellers and a 31.6% jump in active buyers on Etsy's website.
Revenue rose 44.4% to $61.4 million in the quarter.
Still, higher costs meant its net loss widened to $6.4 million or 7 cents per share, from $3.2 million or 8 cents per share.
Analysts on average had expected a loss of 8 cents per share and revenue of $59.5 million, according to Thomson Reuters IBES.