When online marketplace Etsy came public a little over a year ago, Jim Cramer dismissed it as a hippy-dippy outfit that didn't seem to be concerned with making a profit. Now, that view has changed.

"After the spectacular quarter Etsy reported last night, I think the stock is absolutely worth speculating on," the "Mad Money" host said.

Etsy is the marketplace for unique handmade goods and was one of last year's worst performing IPOs, among many IPOs that were horrible. It went public in April last year and spiked to $30 on the first day of trading. After that, it was all downhill.

In the first few quarters as a public company Etsy's revenue growth decelerated, expenses grew and the stock fell, hitting as low as $6 on Jan. 20.

Since then, Etsy has gotten its mojo back. It reported a strong beat on Tuesday and posted its first quarterly profit since the IPO, hence why it shot up 5 percent on Wednesday.

Etsy proved that its revenue growth is now re-accelerating and margins are improving at all levels. The company's gross margins—the amount made after the cost of goods sold—expanded 65.9 percent.

Read more from Mad Money with Jim Cramer

Cramer Remix: I've got a memo for Netflix CEO Reed Hastings
Apple CEO Tim Cook: US government is dysfunctional
Cramer: Despite falling stocks—3 signals make me bullish

With its combined faster sales growth and stronger margins, the company is suddenly turning a surprise profit. It was a small profit, only 1 cent per share, but analysts expected a 2 cent loss.

Emboldening Cramer, Etsy in February finally started issuing real guidance, both for the year ahead and for a three-year period through 2018. Previously, it seemed to Cramer that Etsy only issued a confusing conglomeration of information about the next year that had long descriptions and not many actual numbers.

Beyond the financials, the company has also improved the user experience for both buyers and sellers, which has helped it to fend off competition from Handmade at Amazon.

As for the stock, right now Etsy trades at less than 2.4 times next year's consensus forecast. If it can grow at a 30 percent pace like it did last quarter, Cramer thinks the reality could be more like 2.1 times 2017.

"After spending a year in the wilderness, lately Etsy has gotten its act together in an amazing way," Cramer said.

Cramer's bearish thesis on the stock was torn to shreds after this latest quarter. Therefore, he is willing to bless it for speculation only at this moment.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com