Presumably they had some profitable years prior to 2012 or have maintained limited losses.
Either way, it looks like they're gearing up for some big growth in the next few years. They dipped into the coffers in 2014 and will raise a lot of money from this IPO, so they'll have plenty of cash to burn on fast growth. It should be interesting to watch!
Hrm, that's a bit of a red flag to me. Why bother raising so much money if you're not going to utilize it? Surely growing your business will outpace average annual investment returns. I'm sure the investors have to be annoyed they basically just transferred their assets to Etsy to sit on and not utilize.
And now they're trying to raise an additional $100M via an IPO? It's not like Apple who are literally in the position of "We have so much money we don't know what to do with it."
Net income includes non-cash expenses (i.e. it doesn't explain change in cash position--that's what Statement of Cash Flows is for). Cash flow can be positive with a loss and vice versa.
