EBAY Earnings Prediction
The chart below shows how EBAY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EBAY sees a -0.98% change in stock price 10 days leading up to the earnings, and a +0.82% change 10 days following the report. On the earnings day itself, the stock moves by -0.04%. This data can give you a slight idea of what to expect for the next quarter's release.
EBAY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.58B
0.66%
0.12%
Gross Margin
71.93%
-0.28%
0.49%
Operating Margin
21.09%
-11.42%
-8.86%
Net Margin
26.37%
-7.21%
6.80%
EPS
1.41
1.44%
10.16%
No Data Available
EBAY Earnings Analysis
eBay Inc Corporation (EBAY.O) Earnings Conference Call
Positive
GMV Growth Achievement: eBay ended 2024 with three consecutive quarters of positive growth in gross merchandise volume (GMV), achieving over 1% growth to $75 billion for the year.
GMV Growth in Q4: In Q4, GMV grew by more than 2% to $19.3 billion, driven by strong execution and solid consumer demand during the holiday season.
Focus Categories GMV Growth: Focus categories saw over 6% GMV growth in Q4, significantly outpacing core categories, which were modestly positive.
Trading Cards Growth: Trading cards volume experienced healthy double-digit growth, becoming the largest contributor to GMV growth in Q4.
Motors Parts Growth: The Motors Parts and Accessories category also showed significant growth, with double-digit inventory growth and a successful turnaround in GMV.
Vehicle Purchase Trust Enhancement: eBay's acquisition of Caramel enhances trust in vehicle purchases, tapping into a $75 billion total addressable market for collectible cars in the U.S.
C2C Initiative Success: The U.K. C2C initiative led to double-digit improvements in GMV growth and increased seller engagement, with positive early results from the removal of seller fees.
Advertising Revenue Growth: eBay's advertising revenue grew nearly 12% to $445 million in Q4, with first-party advertising accelerating to 16%.
Earnings Growth and Shareholder Returns: The company achieved a 15% increase in non-GAAP earnings per share, reaching $4.88, while returning nearly $3.7 billion to shareholders through repurchases and dividends.
Sustainability Milestone Achieved: eBay set a 2045 net zero carbon emissions target and achieved 100% renewable energy sourcing for its offices and data centers a year ahead of schedule.
Negative
Marketplace Activity Slowdown: Gross merchandise volume (GMV) growth was only 1% for the full year, indicating a slowdown in overall marketplace activity.
Take Rate Decline: The take rate decreased by 40 basis points year-over-year to 13.3%, which could signal challenges in monetizing sales effectively.
C2C Initiative Impact on Take Rate: The U.K. C2C initiative negatively impacted the take rate by approximately 50 basis points due to the elimination of final value fees for C2C sellers.
Ad Revenue Decline: Third-party display ad revenue declined by 54% in Q4, indicating a significant drop in this revenue stream.
Macroeconomic Challenges Ahead: Despite some positive trends, underlying macroeconomic challenges in the U.K. and Germany remain, which could hinder future growth.
Macroeconomic Challenges Ahead: The company anticipates continued macroeconomic challenges, particularly in the U.K. and Germany, which could impact future performance.
Limited GMV Growth Forecast: The forecast for GMV growth in 2025 is low-single-digit, suggesting limited growth potential in the near term.
Economic Headwinds Impacting Growth: The company expects a headwind of 50 basis points due to tariffs and other economic factors, which could further impact growth.
Operating Margin Challenges: There are expected headwinds in operating margins due to increased depreciation expenses and M&A-related costs, which could affect profitability.
Tax Considerations Impacting Cash Flow: The company is facing unique tax considerations in 2025 that could impact free cash flow significantly.
EBAY FAQs
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EBAY Earning Call Sentiment
eBay Inc. (EBAY) Q4 2024 Earnings Call Transcript
EBAY.O
0.76%Positive
The earnings call highlights strong financial performance, including a 16% YoY increase in EPS and a positive GMV growth. The company is actively investing in AI and partnerships like Facebook Marketplace, which could drive future growth. Despite some macroeconomic challenges, the guidance remains optimistic, and shareholder returns through repurchases and dividends are robust. The Q&A section did not reveal significant concerns, and the overall outlook is positive, suggesting a likely stock price increase of 2-8% over the next two weeks.
