The mission of Etsy is to keep the human connection at the heart of commerce. The company objective is to build an enterprise where creativity thrives. Everything is powered by people and the company develops the all needed human touch for the moments in life that need imagination. Etsy creates connections by linking buyers and sellers from all over the world in order to create a global marketplace for creative and unique goods. The buyers visit the company when they are in need of something special. The company believes in establishing a human connection and therefore does not believe in full automation and commoditization. The marketplace for the company connects close to 2 million creative entrepreneurs with about 33 million customers in need of items made by people (Etsy, 2016) . The company is committed to using its power as a source of good throughout the world. The company strives to drive economic, social and ecological change while nurturing its marketplace.
Financial Performance
The business model for the company is based on the shared success of the seller service growth. Similarly, the international growth determines the success of the company. Mobile growth and investment in marketing are other key drivers for the company. The company continues to invest in growth in order to attract members to its community while enhancing their experience ( Yahoo Finance, 2018) . The management focus on these issues has contributed to the reported yearly growth. The success of sellers contributes to the success of the company and its entire community distributed throughout the world.
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The company has continued to report impressive performance in the last three years with revenues in the domestic and international market reporting an average of 48% annual growth. The cash flow from assets, the operating cash flows, and cash flow to stockholders and the net income for the company have remained negative for the three years under review. The business model is ideal for comparison purposes but the figures cannot be used as a positive example concerning financial management (Etsy, 2016) .
The financial statements of the company indicate that the different sources of revenue have continued to report impressive performance. Similarly, the number of active resellers has increased by 15.5% while active buyers reported a 21.4% growth in 2015. The international community has also continued to report increased activities in the various markets. The market reported 29.8% growth in 2015, 30.9% in 2014 and 28.4% in 2013 indicating that the company has maintained a steady growth (Etsy, 2016) .
Etsy continues to leverage on mobile technology to realize its goal. The company launched "buy on Etsy" in 2011 and "sell on Etsy" in 2014. The mobile visits in 2015 represented 60% of all visits. Similarly, mobile GMS has continued to record impressive performance in the three years where it increased by 30% in 2013, 37% in 2014 and 43% in 2017. The number of mobile apps downloaded as of December 31, 2015, was 31.8 million (Etsy, 2016) .
The success of the company depends on growing and retaining the active sellers and buyers. The revenues for the company are driven by active sellers and their engagement and active buyers and their engagement. Similarly, the revenues are driven by the ability of the company to maintain the trusted market ( Yahoo Finance, 2018) . The company has therefore continued to focus on growing its active buyers and sellers in addition to retaining them and re-engaging them in a cost-effective way.
The negative values in the retained earnings for the company have led to the current state where the total assets are more than the total liabilities and shareholders’ equity. The cash flow statement shows that the cash flows from operations are positive while investing activities have negative cash flows (Keown, 2004) . Financing activities have positive values in two years. The cash flow statement shows that the company has continued to report an increase in its cash and cash equivalents.
The financial statements reflect the managerial goals and the unique operational structure and high growth. The company operational structure and its focus on helping the community give it a competitive edge over its competitors (Keown, 2004) . The operations show that the company is striving to achieve the goals of the management in addition to reporting growth in revenues, customers, and sellers. The company sole objective is not profit maximization and therefore the reported negative figures do not affect its overall goal of helping the community.
References
Etsy. (2016). Etsy Form 10 k. Retrieved from https://otp.tools.investis.com/clients/us/etsy/SEC/sec-show.aspx?Type=page&FilingId=12592381-186723-321679&CIK=0001370637&Index=12300
Keown, A. (2004). Foundations of finance . Upper Saddle River, NJ: Prentice Hall.
Yahoo Finance. (2018). Etsy. Retrieved from https://finance.yahoo.com/quote/ETSY?p=ETSY&.tsrc=fin-srch
