eBay Inc. (NASDAQ:EBAY) reported non-GAAP earnings of $1.07 per share for the fourth quarter of 2023, surpassing the Consensus Estimate by 3.9%. While the bottom line remained flat year over year, net revenues of $2.6 billion exceeded the Consensus Estimate of $2.5 billion. This represented a 2% increase from the year-ago quarter on a reported basis and a 3% increase on an FX-neutral basis.

The company experienced growth in its advertising offerings, with revenues from first-party advertising products increasing by 33% on a reported basis and 30% on an FX-neutral basis to $368 million. Total advertising offerings generated $393 million in revenues, up 23.2% year over year.

However, third-party advertising products saw a decline, with revenues of $25 million, down 42% year over year. eBay also noted a 2% decline in its active buyer base, which stood at 132 million at the end of the fourth quarter, in line with expectations.

Despite these challenges, eBay’s gross merchandise volume (GMV) grew, reaching $18.6 billion in the reported quarter, up 2% year over year on a reported basis and flat on an FX-neutral basis. The company’s U.S. GMV totaled $8.9 billion, while international GMV was $9.7 billion, up 4% year over year.

eBay’s gross margin contracted to 72.3%, operating expenses rose by 14.1% year over year, and the non-GAAP operating margin was 26.7%, down 320 basis points year over year.

As of December 31, 2023, eBay had cash equivalents and short-term investments of $4.5 billion, with long-term debt remaining flat at $6.973 billion. The company generated $123 million in cash from operating activities in the fourth quarter.

For the first quarter of 2024, eBay expects revenues of $2.50-$2.54 billion, with revenue growth anticipated between 0%-2% on an FX-neutral basis. GMV for the first quarter is expected to be $18.2-$18.5 billion, and non-GAAP earnings per share are anticipated between $1.19 and $1.23.

Featured Image: Unsplash @ veryinformed

Please See Disclaimer