Q4 2024 Performance Highlights - eBay's Q4 2024 GMV reached $193 billion, achieving 2% organic FXN growth[16] - eBay's Q4 2024 revenue was $258 billion, with 1% organic FXN growth[16] - eBay's Q4 2024 diluted Non-GAAP EPS was $125, a 16% increase[16] - eBay's Non-GAAP operating margin for Q4 2024 was 270%[16] Full Year 2024 Performance - eBay's full year 2024 GMV reached $747 billion, with 1% organic FXN growth[17] - eBay's full year 2024 revenue was $1028 billion, with 2% organic FXN growth[17] - eBay's full year 2024 diluted Non-GAAP EPS was $488, a 15% increase[17] - eBay's Non-GAAP operating margin for full year 2024 was 281%[17] Q1 2025 Guidance - eBay projects Q1 2025 GMV to be between $183 billion and $186 billion, representing a (1)% to 1% organic FXN change[34] - eBay anticipates Q1 2025 revenue to range from $252 billion to $256 billion, indicating a (1)% to 0% organic FXN change[34]

Group 1 - eBay reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and showing an increase from $1.07 per share a year ago, representing an earnings surprise of 4.17% [1] - The company posted revenues of $2.58 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.02%, and showing a slight increase from $2.56 billion year-over-year [2] - eBay has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - eBay shares have increased approximately 14.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $2.6 billion, and for the current fiscal year, it is $5.23 on revenues of $10.59 billion [7] Group 3 - The Internet - Commerce industry, to which eBay belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - The performance of eBay's stock may also be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

Core Insights - eBay reported better-than-expected financial results for Q4 2024, with Non-GAAP EPS of $1.25 and revenue of $2.6 billion, surpassing analyst estimates and its own guidance [2][3] - The company achieved a year-over-year increase in Non-GAAP EPS of 16.8% and a slight revenue increase of 0.7% [3][6] - eBay's GAAP operating margin improved significantly to 21.1%, up from 16.0% in the previous year [3][8] Financial Performance - Non-GAAP EPS reached $1.25, exceeding the estimate of $1.20 and up from $1.07 in Q4 2023 [3] - Revenue for Q4 2024 was $2.6 billion, slightly above the estimated $2.57 billion and a marginal increase from $2.56 billion in Q4 2023 [3] - GAAP operating margin improved to 21.1%, reflecting effective cost management [3][8] - Free cash flow was reported at $560 million, a significant recovery from a negative $3 million in the previous year [3] Business Overview - eBay operates a global digital marketplace, focusing on enhancing revenue streams through managed payments and advertising [4][5] - The Gross Merchandise Volume (GMV) rose by 4% year-over-year to $19.3 billion, indicating successful user engagement [7] Strategic Initiatives - The company is investing in AI-powered listing tools and partnerships, including integration with Meta Platforms' Facebook Marketplace, to enhance market exposure [7] - eBay's recent investments in the U.K. market aim to streamline seller processes and improve buyer experience [9] Shareholder Returns - eBay repurchased $900 million in shares and distributed $128 million in dividends during the quarter, highlighting its financial health [8] Future Outlook - Management projects revenue for Q1 2025 to be between $2.52 billion and $2.56 billion, with Non-GAAP EPS expected to range from $1.32 to $1.36 [10] - The company maintains a cautiously optimistic outlook for revenue growth, projecting modest negative to positive FX-neutral year-over-year growth of -1% to 1% [11]

Revenue and Earnings - Revenue for Q4 2024 was $2.6 billion, up 1% year-over-year on an as-reported and FX-Neutral basis[5]. - GAAP net income for Q4 2024 was $680 million, or $1.40 per diluted share, a decrease of 7% compared to Q4 2023[9]. - Non-GAAP net income for Q4 2024 was $607 million, or $1.25 per diluted share, an increase of 8% year-over-year[9]. - eBay's net revenues for Q4 2024 were $2,579 million, a slight increase from $2,562 million in Q4 2023, resulting in a year-over-year growth of 0.7%[28]. - eBay's net income for the year ended December 31, 2024, was $1,975 million, down from $2,767 million in 2023, representing a decrease of about 28.6%[28]. - eBay's diluted net income per share for the year ended December 31, 2024, was $3.94, down from $5.19 in 2023, reflecting a decline of approximately 24.1%[28]. - Non-GAAP net income from continuing operations for the year ended December 31, 2024, increased to $2,445 million, up 8.2% from $2,260 million in 2023[60]. - Non-GAAP diluted net income per share for Q4 2024 was $1.25, an increase of 16.8% from $1.07 in Q4 2023[60]. Gross Merchandise Volume (GMV) - Gross Merchandise Volume (GMV) for Q4 2024 was $19.3 billion, representing a 4% increase on an as-reported basis and a 3% increase on an FX-Neutral basis[5]. - Gross Merchandise Volume (GMV) for the U.S. was $9,043 million, a 2% increase year-over-year, while international GMV was $10,277 million, a 6% increase[36]. - Total Gross Merchandise Volume for the quarter was $19,320 million, representing a 4% increase compared to the same quarter last year[36]. Cash Flow and Investments - Cash and cash equivalents increased from $2,493 million at the end of Q4 2023 to $3,286 million at the end of Q4 2024, marking a rise of 31.8%[32]. - Free cash flow for Q4 2024 was $560 million, a significant increase from a negative $3 million in Q4 2023[63]. - The company reported a change in fair value of equity investments, with a realized gain of $57 million from shares sold in Adyen for the year ended December 31, 2024[60]. - The company experienced a significant change in fair value of equity investments in Adevinta, with a loss of $451 million recorded in Q4 2023[60]. - Total purchases of property and equipment for the year ended December 31, 2024, were $458 million, compared to $456 million in 2023[63]. Operating Performance - eBay achieved a GAAP operating margin of 21.1% in Q4 2024, an increase from 16.0% in the same period last year[14]. - GAAP operating income for the quarter ended December 31, 2024, was $543 million, compared to $410 million in the prior year[58]. - Non-GAAP operating income for the same period was $698 million, reflecting a slight increase from $686 million year-over-year[58]. - Operating expenses for the year ended December 31, 2024, totaled $5,085 million, down from $5,338 million in 2023, showing a reduction of approximately 4.7%[28]. Shareholder Returns - eBay returned $1.0 billion to stockholders in Q4 2024, including $900 million in share repurchases and $128 million in cash dividends[6]. Guidance and Projections - eBay's guidance for Q1 2025 projects revenue between $2.52 billion and $2.56 billion, with GMV expected between $18.3 billion and $18.6 billion[12]. - The company provided guidance for net revenues between $2.52 billion and $2.56 billion for the three months ending March 31, 2025[43]. - The projected Gross Merchandise Volume for the same period is estimated to be between $18.3 billion and $18.6 billion[43]. Tax and Liabilities - The company expects a non-GAAP effective tax rate of 16.5% based on current long-term projections[56]. - The effective tax rate for continuing operations was 10.3% in Q4 2024, compared to 29.4% in Q4 2023[60]. - The company’s total liabilities decreased from $15,224 million in 2023 to $14,207 million in 2024, a reduction of about 6.7%[26].

Core Insights - eBay reported strong financial results for Q4 and full year 2024, achieving three consecutive quarters of GMV growth and laying a solid foundation for sustainable long-term growth in 2025 [2][6][8] Financial Highlights - Q4 revenue reached $2.6 billion, a 1% increase year-over-year, while full year revenue was $10.3 billion, up 2% [6][8] - Gross Merchandise Volume (GMV) for Q4 was $19.3 billion, up 4% year-over-year, and full year GMV was $74.7 billion, also up 2% [6][8] - GAAP net income for Q4 was $680 million, or $1.40 per diluted share, while full year GAAP net income was $2.0 billion, or $3.95 per diluted share [7][8] - Non-GAAP net income for Q4 was $607 million, or $1.25 per diluted share, and for the full year, it was $2.4 billion, or $4.88 per diluted share [7][8] - Operating cash flow for Q4 was $677 million, and free cash flow was $560 million [7][14] Business Developments - eBay made significant investments in the U.K. market to enhance the customer experience for consumer-to-consumer sellers, including the introduction of a simplified listing flow and the elimination of final value fees for C2C sellers [6][7] - The company expanded its AI-powered bulk listing tool to all categories in the U.S., facilitating easier listing creation for sellers [6][7] - eBay's advertising offerings generated $445 million in revenue during Q4, representing 2.3% of GMV, with first-party advertising products increasing by 18% year-over-year [6][7] - The introduction of Klarna's 'buy now, pay later' payment options in multiple European countries aims to enhance payment flexibility for shoppers [6][7] Shareholder Returns - eBay returned $1.0 billion to stockholders in Q4, including $900 million in share repurchases and $128 million in cash dividends [6][7] - For the full year, the total return to stockholders was $3.7 billion, comprising $3.1 billion in share repurchases and $533 million in cash dividends [7][8] Future Outlook - eBay provided guidance for Q1 2025, projecting revenue between $2.52 billion and $2.56 billion, with GMV expected to be between $18.3 billion and $18.6 billion [11][33]

Group 1 - eBay Inc. has outperformed the S&P year-to-date, but caution signals are emerging regarding its prospects, indicated by a Seeking Alpha Quant Rating of 3.19, which suggests a "hold" position [1] - The investor profile focuses on finding opportunities in emerging and undervalued stocks, often contrary to conventional thought, emphasizing the importance of fundamentals in investment decisions [1] - The investor has a history of successful trading, identifying value in various companies, and shows a particular interest in innovation across sectors [1] Group 2 - The article does not provide any specific financial data or performance metrics for eBay Inc. or the broader industry [2][3]

Core Viewpoint - eBay is set to report its fourth-quarter 2024 results on February 26, with expectations of modest revenue growth and potential impacts from new initiatives and macroeconomic factors [1][2][6]. Revenue Expectations - eBay anticipates fourth-quarter revenues between $2.53 billion and $2.59 billion, with a year-over-year change expected to be between -1% and 1% on both FX-neutral and spot rate bases [2] - The Zacks Consensus Estimate for revenues is $2.58 billion, indicating a 0.64% increase from the previous year [2]. Earnings Projections - The company expects non-GAAP earnings per share to be between $1.17 and $1.22, reflecting a year-over-year growth of 9% to 14% [3] - The consensus estimate for earnings is $1.20 per share, suggesting a rise of 12.15% from the same quarter last year [3]. Strategic Initiatives - eBay's UK C2C initiative aims to enhance gross merchandise volume (GMV) by removing seller fees while introducing buyer fees in early 2025, which is expected to increase listings and seller engagement [4] - Although the fourth-quarter results may show limited benefits from this initiative, it is projected to unlock a larger total addressable market and drive long-term revenue growth [4]. Advertising Revenue Growth - eBay's advertising revenues grew by 11% year-over-year in the third quarter, reaching $408 million, with first-party ads increasing by 14% [5] - Continued growth in advertising revenues is expected to help offset pressures from the UK C2C initiative in the fourth quarter [5]. Market Challenges - The fourth quarter is likely to face challenges due to a shorter holiday shopping season and distractions from U.S. elections, which may have shifted consumer spending patterns [6] - These factors are expected to negatively impact transaction volumes and overall revenue growth for the quarter [6]. Technological Enhancements - eBay employs AI-powered tools for listing and bulk listing, which streamline the selling process and enhance seller engagement [7] - These tools are anticipated to improve operational efficiency and positively influence the bottom line in the fourth quarter [7].

Core Viewpoint - Analysts project eBay's quarterly earnings to be $1.20 per share, reflecting a 12.2% year-over-year increase, with revenues expected to reach $2.58 billion, a 0.6% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 1.2% lower in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate eBay's Gross Merchandise Volume (GMV) at $19.06 billion, up from $18.59 billion year-over-year [5]. - Active Buyers are projected to reach 133.32 million, compared to 132 million in the previous year [5]. - Gross Merchandise Volume - International is expected to be $9.86 billion, an increase from $9.70 billion reported in the same quarter last year [5]. - Gross Merchandise Volume - US is forecasted at $9.14 billion, up from $8.89 billion in the same quarter last year [6]. Stock Performance - eBay shares have increased by 7.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.2% [7]. - eBay holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7].

Core Insights - eBay has completed the acquisition of Caramel, an online automotive transaction solution provider, enhancing its vehicle marketplace capabilities [1][4] - Caramel's platform simplifies the complexities of vehicle sales, including paperwork, ownership transfer, financing, and transportation [2][6] - The integration of Caramel's technology aims to foster a more secure and transparent vehicle marketplace, improving buyer and seller confidence [3] Company Overview - eBay Inc. is a global commerce leader, connecting millions of sellers and buyers across more than 190 markets, with a gross merchandise volume exceeding $73 billion in 2023 [5] - Caramel, founded in 2021 and headquartered in Los Angeles, offers a seamless end-to-end vehicle purchase experience, including identity verification and financing [6] Strategic Implications - The partnership between eBay and Caramel aligns with their shared goals of building vibrant communities and enhancing the car buying experience for consumers [3] - Caramel will continue to operate through its own platforms and various marketplace partners, expanding its reach beyond eBay [2]

Core Viewpoint - eBay is positioned as a strong candidate for investors due to its consistent performance in beating earnings estimates, particularly in the last two quarters, with an average surprise of 2.64% [1] Earnings Performance - For the most recent quarter, eBay reported earnings of $1.19 per share, exceeding the expected $1.18 per share, resulting in a surprise of 0.85% [2] - In the previous quarter, eBay's actual earnings were $1.18 per share against an expectation of $1.13 per share, leading to a surprise of 4.42% [2] Earnings Estimates - There has been a favorable change in earnings estimates for eBay, with a positive Zacks Earnings ESP of +0.58%, indicating bullish sentiment among analysts regarding the company's earnings prospects [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] Investment Strategy - Investors are encouraged to check a company's Earnings ESP prior to quarterly releases to enhance the likelihood of successful investment decisions [7]