Etsy Sells Depop for $1.2B, Q4 EPS Beats But Revenue Misses
Etsy sold its Depop resale platform to eBay for $1.2 billion in cash, five years after acquiring it for $1.6 billion, and plans to deploy proceeds into share repurchases and marketplace investments. In Q4, Etsy reported net income of $110.7 million, or $0.92 per share, beating forecasts while revenue of $881.6 million slightly trailed estimates.
1. Depop Sale to eBay
Etsy agreed to sell its Gen Z–focused Depop platform to eBay for $1.2 billion in cash, marking a return on its 2021 acquisition. Depop’s marketplace boasts 7 million active buyers, nearly 90% under age 34, and 3 million sellers.
2. Q4 Earnings Results
In the fourth quarter, Etsy delivered net income of $110.7 million, or $0.92 per share, outpacing the $0.88 consensus, while revenue reached $881.6 million, narrowly missing the $884.9 million estimate. Full-year net profit was $163 million on $2.88 billion in sales.
3. Proceeds Deployment and Market Reaction
Etsy plans to use the Depop sale proceeds for general corporate purposes, accelerated share repurchases, and core marketplace investment. The announcement propelled Etsy shares up about 15% in after-hours trading.