eBay Blows Past Estimates Reports Better Than Expected Fourth Quarter and Full Year 2020 Results

 

eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its fourth quarter and full year ended December 31, 2020.

To be mentioned that Q1 saw eBay complete the sale of the ticketing company StubHub to Viagogo for $4.1 billion. Windfalls like that don’t come along every quarter.

– Revenue of $2.9 billion, up 28% on both an as-reported basis and an FX-Neutral basis
– Gross Merchandise Volume of $26.6 billion, up 21% on an as-reported basis and up 18% on an FX-Neutral basis
– GAAP and Non-GAAP EPS per diluted share of $1.12 and $0.86, respectively, on a continuing operations basis
– GAAP and Non-GAAP operating margin of 23.6% and 28.1%, respectively
– Returned $529 million to shareholders in Q4, including $419 million of share repurchases and $110 million paid in cash dividends
– Board of Directors declared a quarterly dividend of $0.18 per share, a 13% increase from the prior quarterly dividend, and expands share repurchase authorization by an additional $4.0 billion.

“I am proud eBay was able to be there for our buyers, sellers and community, especially in the face of a global pandemic,” said Jamie Iannone, Chief Executive Officer at eBay. “We finished the year with strong financial results, but what inspires me most is the support we’ve been able to extend to small businesses — providing them with tools, resources and access to millions of buyers globally. We will continue to invest in product and technology in order to deliver the best marketplace in the world for our customers.”

 

Fourth Quarter Financial Highlights

 

  • Revenue was $2.9 billion, up 28% on both an as-reported basis and a foreign exchange (FX) neutral basis.
  • Gross merchandise volume (GMV) was $26.6 billion, up 21% on an as-reported basis and up 18% on an FX-Neutral basis.
  • GAAP net income from continuing operations was $781 million, or $1.12 per diluted share.
  • Non-GAAP net income from continuing operations was $600 million, or $0.86 per diluted share.
  • Generated $883 million of operating cash flow and $715 million of free cash flow from continuing operations.
  • Annual active buyers grew by 7%, for a total of 185 million global active buyers.

 

Full Year Financial Highlights

  • Revenue was $10.3 billion, up 19% on an as-reported basis and up 20% on an FX-Neutral basis.
  • GMV was $100.0 billion, up 17% on both an as-reported basis and an FX-Neutral basis.
  • GAAP and Non-GAAP operating margin were 26.4% and 31.3%, respectively.
  • Repurchased approximately $5.1 billion of its common stock and paid $447 million in cash dividends.

Business Highlights
Initiatives

  • eBay continues to scale its management of payments globally, announcing expansion plans to Greater China, along with further enablement for consumer sellers in the U.S., U.K. and Germany. In Q4, over 38% of global on-platform volume was processed through managed payments, with over 50% of the payments migration completed in the U.S. eBay exited the quarter with over 1 million sellers migrated globally.
  • Promoted Listings delivered over $215 million of revenue in Q4, up 60% on an as-reported basis and up 57% on an FX-Neutral basis.
  • The company’s total advertising revenue reached a new milestone in 2020, passing $1 billion in revenue for the year.

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