The Etsy company logo is seen at its headquarters in New York City on Dec. 13, 2023.
Etsy shares popped on Thursday after the company said it plans to offload its fashion resale app Depop to eBay for about $1.2 billion in cash.
The online marketplace also reported mixed earnings results for the fourth quarter.
Here's how Etsy did, compared with estimates from analysts polled by LSEG:
Earnings per share: 92 cents vs. 84 cents estimated
92 cents vs. 84 cents estimated Revenue: $882 million vs. $885 million estimated
Gross merchandise sales, or the dollar value of items sold, slid 3.8% year over year to $3.59 billion and missed analyst estimates of $3.6 billion, according to FactSet. The company attributed the annual decline to its sale of musical instrument marketplace Reverb, which was completed last June.
The downbeat results were overshadowed by the Depop deal announced on Wednesday. Etsy CEO Kruti Patel Goyal said in a statement that the sale would allow the company to "focus exclusively" on its core marketplace.
EBay said Depop, a popular resale app among younger consumers, complements its business and would strengthen its presence in fashion, which has become one of its fastest-growing categories.
Shares of eBay also climbed on Thursday.