EBAY Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Viewpoint - eBay Inc. reported strong fourth-quarter 2024 results with non-GAAP earnings per share of $1.25, exceeding estimates and showing a 16% year-over-year increase [1][2] Financial Performance - Net revenues for the quarter were $2.57 billion, slightly missing estimates by 0.02%, but reflecting a 1% increase year-over-year [2] - eBay's total gross merchandise volume (GMV) reached $19.3 billion, growing 4% year-over-year, driven by solid consumer demand during the holiday season [4] - The company's active buyer base increased to 134 million, up 1% year-over-year, surpassing consensus expectations [3] Advertising and Revenue Streams - First-party advertising generated revenues of $434 million, marking an 18% increase year-over-year [2] - Total advertising offerings yielded $445 million, representing 2.3% of gross merchandise volume [3] Operating Metrics - Gross margin for the quarter was 72.16%, remaining stable year-over-year, while operating expenses decreased by 8.6% [6] - Non-GAAP operating margin expanded to 27%, reflecting operational efficiencies [7] Balance Sheet and Cash Flow - As of December 31, 2024, cash equivalents and short-term investments rose to $5.89 billion, while long-term debt decreased to $5.75 billion [8] - The company generated $677 million in cash from operating activities and had a free cash flow of $560 million [9] Future Guidance - For Q1 2025, eBay expects revenues between $2.52 billion and $2.56 billion, with a projected GMV of $18.3 billion to $18.6 billion [10] - Non-GAAP earnings per share are anticipated to be between $1.32 and $1.36 [11]