EBay Projects Revenue Exceeding Q1 Estimates

• Q1 revenue forecast of $3 billion to $3.05 billion beats analyst estimates of $2.80 billion by approximately 9%
• Company's focus on specialty categories like luxury goods and auto parts is helping it navigate challenging e-commerce market conditions
• eBay to acquire consumer-to-consumer fashion platform Depop from Etsy for approximately $1.2 billion in cash

Summary: eBay Projects Q1 Revenue Above Estimates, Announces Depop Acquisition

Key Financial Projections:

eBay Inc. forecast first-quarter revenue between $3.0 billion and $3.05 billion, significantly exceeding Wall Street's average estimate of $2.80 billion according to LSEG data. This represents a notable outperformance of approximately 7-9% above analyst expectations.

Strategic Focus:

The e-commerce company attributes its positive outlook to its strategic emphasis on specialty categories, particularly luxury goods and auto parts. This focused approach appears to be helping eBay differentiate itself and maintain competitiveness in a challenging e-commerce environment.

Major Acquisition:

eBay announced plans to acquire Depop, a consumer-to-consumer fashion marketplace, from Etsy Inc. for approximately $1.2 billion in cash. This acquisition signals eBay's commitment to expanding its presence in the resale fashion market and strengthening its specialty category portfolio.

Market Implications:

The stronger-than-expected revenue guidance suggests eBay's niche strategy is resonating with consumers and gaining traction amid broader e-commerce market headwinds. The Depop acquisition further reinforces the company's pivot toward high-margin specialty categories, particularly in fashion resale—a growing segment among younger demographics.

The deal also marks a significant divestiture for Etsy, potentially allowing that company to refocus on its core marketplace business. For eBay, the $1.2 billion investment represents a substantial bet on the continued growth of secondhand fashion and peer-to-peer commerce platforms.

Announcement Date: February 18, 2025

The positive forecast and strategic acquisition demonstrate eBay's proactive approach to carving out defensible market positions in specialized e-commerce verticals.