Etsy Inc ( ETSY ) reported first-quarter financial results after the market close on Wednesday. Here’s a look at the key highlights from the quarter.

Q1 Earnings: Etsy ( ETSY ) reported first-quarter revenue of $645.954 million, which missed the consensus estimate of $646.33 million, according to Benzinga Pro. The company reported quarterly earnings of 48 cents per share, which missed estimates of 49 cents per share.

Consolidated GMS (gross merchandise sales) totaled $3 billion in the quarter, down 3.7% year-over-year, primarily due to the challenging macroeconomic environment that impacted consumer discretionary product spending. Etsy ( ETSY ) marketplace GMS was $2.6 billion, down 5.3% year-over-year.

Etsy ( ETSY ) ended the quarter with $1.1 billion in cash, equivalents and short- and long-term investments. 

“Our first quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy ( ETSY ) marketplace growth,” said Josh Silverman, CEO of Etsy ( ETSY ).

“That said, we are encouraged by the meaningful progress we have made to improve customer experiences that we expect will drive buyer consideration and frequency over time, and we are working with focus and urgency to set the foundation to reignite Etsy ( ETSY ) marketplace growth.”

Outlook: Etsy ( ETSY ) expects second-quarter GMS to be similar to its first-quarter performance with the downside being a mid-single-digit decline and the upside being the top end of a low single-digit decline. Etsy’s current outlook suggests a modest acceleration in year-over-year consolidated GMS in the second half of the year.

Management will hold a conference call to discuss these results at 5 p.m. ET.

ETSY Price Action: Etsy ( ETSY ) shares were down 13.56% after hours at $60.28 at the time of publication Wednesday, according to Benzinga Pro.

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