Etsy sales grow 11% to $692.5M as it books a big gain from Depop sale

Etsy reported third-quarter revenue of $692.5 million, up 11% from a year earlier. That beat the roughly $668 million Wall Street analysts expected. The online marketplace also posted net income of $853.5 million, a number inflated by its sale of Depop, a resale app.

What changed

Shoppers spent $2.65 billion on Etsy during the quarter, up 9% from the same period last year. That measure is called gross merchandise sales. It counts the total value of goods sold on the site, not just the money Etsy keeps. Revenue grew faster than sales, at 11% against 9%.

Why the profit looks so big

The $853.5 million in net income came after Etsy sold Depop. A sale like that is typically a one-time event, not a sign that the core business suddenly became far more profitable. The material does not break out how much of the profit came from the Depop sale.

Who it affects

Sellers and shoppers are the main groups. A growing marketplace suggests steady buyer demand for handmade and unique goods. For people who sell on Etsy, that is a mildly encouraging sign.

What is not known yet

• The sale price of Depop and the size of the gain are not given here.
• There is no word on Etsy's plans now that Depop is gone.
• The full report, including what Etsy expects next, was not available.