eBay delivers strong GMV and revenue growth in Q4

eBay delivered gross merchandise volume (GMV) for the quarter ended December 31, 2016 of 22.3 billion dollars, increasing 5 percent on a foreign exchange (FX) neutral basis and 2 percent on an as-reported basis. Revenue for the quarter was 2.4 billion dollars, up 6 percent on an FX-neutral basis and 3 percent on an as-reported basis. For the full year 2016, eBay reported total GMV of 84 billion dollars, up 5 percent on an FX-neutral basis and 3 percent on an as-reported basis. Revenue was 9 billion dollars, growing 7 percent on an FX-neutral basis and 5 percent on an as-reported basis.

"Q4 was a record quarter highlighted by solid performance in our eBay business. During the holiday season, eBay was one of the top consumer shopping destinations in the world and the second most visited ecommerce site in the US," said Devin Wenig, President and CEO of eBay in a statement, adding, "In 2017, we intend to accelerate the progress that we made last year as we continue to execute our business strategy."

Business highlights of the fourth quarter

During the quarter, eBay delivered GAAP net income from continuing operations of 5.9 billion dollars or 5.31 dollars per diluted share, driven by a non-cash 4.6 billion dollars income tax benefit related to a legal structure realignment, primarily impacting its international entities, as well as a 0.8 billion dollars gain from the sale of its equity holdings of MercadoLibre. Non-GAAP net income from continuing operations was 601 million dollars or 0.54 dollar per diluted share.

In the fourth quarter, eBay added two million active buyers across its platforms, for a total of 167 million global active buyers. Underlying total eBay performance, the marketplace platforms delivered 21.1 billion dollars of GMV and 1.9 billion dollars of revenue. Marketplace revenue was up 4 percent on an FX-neutral basis and flat on an as-reported basis, driven by a strong holiday season which led to accelerating GMV growth of 5 percent on an FX-neutral basis and 2 percent on an as-reported basis.

StubHub GMV of 1.2 billion dollars was up 5 percent and revenue of 279 million dollars, increased 20 percent. The classifieds platforms delivered another quarter of double digit growth with revenue of 201 million dollars, up 13 percent on an FX-neutral basis and 10 percent on an as-reported basis with strong performance in Germany.

Expects 4 to 6 percent sales growth in Q1

For the first quarter of 2017, the company expects net revenue between 2.17 billion dollars and 2.21 billion dollars, representing FX-Neutral growth of 4 percent – 6 percent, with non-GAAP earnings per diluted share from continuing operations in the range of 0.46 dollar - 0.48 dollar and GAAP earnings per diluted share from continuing operations in the range of 0.25 dollar - 0.40 dollar.

For the full year, the company expects net revenue between 9.3 billion dollars and 9.5 billion dollars, representing FX-neutral growth of 6 percent to 8 percent, with non-GAAP earnings per diluted share from continuing operations in the range of 1.98 dollars to 2.03 dollars and GAAP earnings per diluted share from continuing operations in the range of 1.20 dollars to 1.40 dollars.

Picture:eBay Campus, San Jose, CA

 

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