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Etsy shares plunge after CEO steps down

Shares of Etsy tumbled 14 percent in extended trading Tuesday after the retail website announced Chad Dickerson "will step down as CEO and Chair of the Board of Directors," effective May 3.

The company named Josh Silverman as the incoming CEO and Fred Wilson as the new chair of the board, according to a press release on Tuesday.

Silverman served as a director on Etsy's board of the directors since November 2016. Wilson joined the board in June 2007 and has served as lead independent director since October 2014, according to Etsy.

"In the six months that Josh has been on our Board, we have gotten to know him well and he has gotten to know us well," Wilson said in the press release. "That will make for an easier transition and faster execution. I am pleased to be appointed Chair of the Etsy Board and I am looking forward to working closely with Josh and the leadership team to help Etsy capitalize on its significant growth opportunities."

The company also reported earnings after the bell on Tuesday, missing expectations. The company reported no earnings for its first quarter — as in a figure of zero cents per share, while analyst expected earnings of 1 cent per share, according to Thomson Reuters consensus estimates.

Etsy also reported revenue below expectations at $96.9 million versus a Wall Street expectation of $98.4 million, according to Thomson Reuters consensus estimates.

Dickerson, who was CEO during the first quarter, is expected to stay on the Etsy team in an advisory role until May 31.

"The Board decided that it was time for new leadership to take Etsy forward and I support that decision," Dickerson said in the release.

Etsy also said their chief technology officer John Allspaw will be leaving the company and will also be serving in an advisory role until May 31. Mike Brittain, Etsy's vice president of engineering will take his place for the time being.