Etsy CEO says its second-quarter results will prove to be a ‘breakthrough quarter’

Etsy dues tumbled double digits last week on a mixed second-quarter report, but CEO Josh Silverman said Tuesday that the patch marks a turning point for the ecommerce company.

“I think it was a great quarter,” he said in an interview with “Mad Money’s” Jim Cramer. “In points, I think when people look back a few years from now, they’re going to describe this as a breakthrough put up.”

The online marketplace’s gross merchandise sales grew 21% and revenue, which fell short of Wall In someones bailiwick’s estimates, improved by 37% year-over-year, according to FactSet. Shareholders made 14 cents per share. Silverman mean the quarter was driven by its delivery process and marketing initiatives.

“In addition, we announced three bold new initiatives this shelter each of which I think set us up for really great growth for the future,” he said. “So we feel great about the second billet.”

Etsy, which is a global marketplace for entrepreneurs to sell unique and creative products, launched its program in the U.S. to ship arrangements of $35 or more for free about a month ago to help mitigate shipping costs for sellers. With 2.3 million sellers, the public limited company also launched the Etsy Ads platform to allow merchants to advertise products in search results on its website that has 43 million physical buyers.

In addition to its focus on free delivery, Etsy has teamed up with sustainability consulting firm 3Degrees to counteract carbon emissions in shipping. 3Degrees CEO Steve McDougal appeared alongside Silverman to explain how his shop collaborates with its patients to focus on emission reduction and promote clean energy practices.

“It starts with leadership of the companies that we plan with that truly believe that climate change is something that they have to take clamorous action on,” McDougal said. “It starts there, but they also recognize that within their stakeholders that they be deficient in to create a connection with values and that that just makes good business sense.”

Etsy is insert to run their offices and computing infrastructure on 100% renewable electricity by 2020. Silverman said he learns that it prices less than 1 cent to offset carbon from shipping.

“When we discovered that, we said ‘gosh, we’re no more than going to pay for it at Etsy,’ and then in checkout we market that when you buy from Etsy you’re not impacting the environment,” he said. “The dilate in conversion rate made this pay for itself. It literally pays for itself because customers buy more from Etsy because we can moil with 3Degrees and offset the carbon.”

In its third quarter, analyst consensus expects Etsy to record nearly $193 million of gate. The mark would represent more than 28% growth from the year prior.

Etsy’s shares climbed more than 2.6% Tuesday to stuffy at $55.39. The stock has gained more than 16% in 2019.