eCommerce

The Skinny On eBay’s Q4 Earnings

eBay’s fourth-quarter results show that eBay is making improvements in its post PayPal split, but there are still some major hurdles to clear. Like its Marketplace segment, the component dragging its earnings down each quarter.

The early guidance given Wednesday afternoon (Jan. 27) sent eBay’s stock down nearly 10 percent in after-hours trading.

What eBay’s Q4 results show is:

  • GMV of $21.9 billion, up 5 percent YoY on FX-neutral basis
  • Revenue of $2.3 billion, up 5 percent YoY on FX-neutral basis
  • A 5 percent active buyer increase to 162 billion
  • Non-GAAP net income was down on the quarter compared to last year. 2015’s Q4 income was $600 million, versus 2014’s Q4 of $685 million (an $85 million dip).
  • GAAP Income was $523 million, down from 2014’s Q4 income of $729 million
  • Marketplace revenue: $20.7 billion in GMV, resulting in $1.9 billion in Q4 revenue.
  • Marketplace saw 265 million transactions in 190 markets during the holiday season.
  • StubHub had strong growth with GMV of $1.2 billion; $232 million in revenue (up 34 percent)

“We delivered solid fourth quarter results and continued to make progress against our key priorities,” Devin Wenig, President and CEO of eBay, wrote in the company’s earnings release. “The quarter also marked the end of an extraordinary year during which we completed the spin-off of PayPal. We continue to grow our business and customer base while executing our plan to reposition eBay for long-term success.”

For 2015’s full-year results, eBay had its active buyer base grow by 8 million to a total of 162 million total active buyers (a 5 percent growth). Total GMV was $82 billion, a 5 percent growth for the year prior. Revenue for the year was $8.6 billion, up 5 percent.

For more on what came out of eBay’s earnings call with analysts, check back with PYMNTS.com for the full outlook of eBay’s earnings impact on its overall marketplace figures.

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