Ebay meet expectations for the quarter
Ebay have been providing an online marketplace for buyers and sellers for more than two decades, and they have grown into one of the world’s leading ecommerce sites. Now, they have pleased their investors and executives by performing well over the crucial holiday quarter.
For an ecommerce site like Ebay, it is absolutely imperative that they rake in a lot of revenue during the Christmas and New Year period. This is simply because online shopping drags in a monumental amount of money, and if people aren’t spending it on Ebay, they’re spending it with their competitors.
It was a bumper end to the year for the California-based business, as they posted gross merchandising volume (GMV) of $22.3 billion for the quarter ending 31 December. This was a 5% increase on the same period last year on a constant currency basis, or 2% on a reported basis.
Revenue for the quarter came in at $2.4 billion, which was up 6% on a constant currency basis, or 3% as reported. A press release from the company said: ‘During the quarter, eBay delivered GAAP net income from continuing operations of $5.9 billion, or $5.31 per diluted share, driven by a non-cash $4.6 billion income tax benefit related to a legal structure realignment, primarily impacting its international entities, as well as a $0.8 billion gain from the sale of its equity holdings of MercadoLibre, Inc.’
Devin Wenig, president and chief executive of Ebay, said: “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 U.S. n 2017, we intend to accelerate the progress that we made last year as we continue to execute our business strategy."
One of the operating highlights that stand out from the Q4 release was that Ebay had been able to add two million active buyers across its different platforms, taking it to a total of 167 million global active buyers.
For the full year, Ebay were able to grow their GMV by 5% to $84 billion, with revenue coming in at $9 billion, up 7% on a constant currency basis, or 5% on an as reported basis.
Dominion holds Ebay in its Global Trends Ecommerce Fund.
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