E-commerce titan eBay exceeded market projections for both quarterly revenue and profit, attributing its success to robust consumer spending during the holiday season and the resilience of its key focus areas like refurbished goods and auto parts.
In extended trading, eBay’s shares surged by approximately 4%, reflecting investor optimism following the company’s strong performance. Additionally, eBay’s board of directors approved an additional $2 billion share repurchase program, further bolstering confidence in the company’s future prospects.
Chief Financial Officer Stephen Priest highlighted a noticeable improvement in business performance towards the end of November, particularly in the U.S., driven by consumers seeking value amid tight holiday budgets. This uptick underscores eBay’s resilience as a global marketplace connecting buyers and sellers.
Despite its overall positive results, CEO Jamie Iannone acknowledged challenges in the UK and Germany, with the latter experiencing negative e-commerce growth.
To adapt to evolving market dynamics, eBay recently streamlined its workforce by cutting around 1,000 roles, or approximately 9% of its workforce, aligning with similar moves by industry peers like Amazon.com.
Looking ahead, eBay provided a bullish outlook for the first quarter, with revenue projected to range between $2.50 billion and $2.54 billion, surpassing analysts’ estimates. Similarly, adjusted earnings are forecasted to be between $1.19 per share and $1.23 per share, indicating strong performance potential.
Despite challenges in certain markets, eBay’s gross merchandise volume, a key industry metric representing the total value of goods sold on its platform, increased by 2% year-over-year to $18.59 billion in the fourth quarter, signaling sustained growth momentum.
Amidst global economic uncertainties, eBay’s ability to surpass expectations and project a positive outlook underscores its resilience and adaptability in the dynamic e-commerce landscape.
