eBay Inc.’s (EBAY - Free Report) fourth-quarter 2018 earnings surpassed the Zacks Consensus Estimate by 16 cents. Adjusted earnings of 71 cents increased 20.3% year over year.
Gross revenues of $2.87 billion increased 6.3% year over year (up 6% on an Fx-neutral basis) and were within the guided range of $2.85-$2.89 billion. Moreover, revenues surpassed the Zacks Consensus Estimate of $2.86 billion.
The company continues to leverage its structured data and Artificial Intelligence (AI) to improve user experience on its platform. Notably, this aided in growth of active buyers on its platform, which drove GMV. Further, robust growth of Advertising and Payment platform drove eBay’s top-line growth.
Revenues and GMV
In the fourth quarter, the Marketplace platform accounted for $2.3 billion of revenues, up 6.7% year over year on a reported basis and 6% on an Fx-neutral basis. Marketplace GMV was $23.2 billion, up 1.3% year over year on a reported basis and 3% on a Fx-neutral basis.
StubHub contributed $1.4 billion of GMV, down 1.4% on a year-over-year basis, and revenues of $314 million, which increased 1.6% from the year-ago quarter and 3% on Fx-neutral basis.
Classifieds platforms performed pretty well with contribution of $263 million in revenues, up 8% year over year and 11% on an Fx-neutral basis.
Total GMV was $24.7 million in the fourth quarter, up 1.2% year over year on a reported basis. Increase in total GMV was driven by international operations, which increased 5% year over year, while U.S. operations were down 1% year over year.
During the quarter, global active buyers/customers increased 4% from the year-ago quarter to 179 million, driven by increased marketing investments. Notably, growth in GMV was lower than growth in total active buyers.
In the reported quarter, eBay partnered with leading service providers, namely Handy, Porch and InstallerNet, to offer installation services to its shoppers. Further, the company expanded its eBay Authenticate platform into the luxury jewelry category, which offers jewelries verified by professional authenticators, in the reported quarter.
eBay Inc. Price, Consensus and EPS Surprise