eBay reports $10.3bn revenue in 2024, GMV grows 2% YoY

ByInvestment Club

Overview

eBay delivered a stable financial performance in full year 2024, reporting $10.3bn in revenue, reflecting a 2% year-over-year increase. The company saw three consecutive quarters of Gross Merchandise Volume (GMV) growth, ending the year with $74.7bn in GMV. Strong advertising revenue growth and continued expansion of AI-driven features supported the company’s performance.

CEO Jamie Iannone emphasized eBay’s focus on reinvention: “eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of ecommerce for enthusiasts. I’m proud of how the team has innovated for our buyers and sellers, which has driven significant value for shareholders.”

Q4 2024 vs. Q4 2023:

  • Revenue increased slightly to a value of $2.6bn (+1% YoY), driven by solid GMV growth, which recorded a value of $19.3bn (+4% YoY).
  • The company generated $445m in Q4 ad revenue, with first-party ad revenue up 18% YoY.
  • GAAP net income declined to $680m (-7% vs. Q4 2023), with diluted EPS of $1.40 (flat YoY), while Non-GAAP net income was $607m (+8% YoY), with diluted EPS of $1.25 (+18% vs. Q4 2023).
  • GAAP and Non-GAAP operating margins were 21.1% and 27.0%, respectively, reflecting cost discipline.
  • Free cash flow recorded a value of $560m, with $677m (+455% YoY) in operating cash flow.
  • The company returned $1.0bn to shareholders in Q4 2024, including $900m in share repurchases and $128m in dividends.

Full-Year 2024 highlights:

  • Total revenue rose to $10.3bn (+2% YoY), driven by platform enhancements and higher advertising revenue.
  • GMV were on the same upward trend, reaching the value of $74.7bn (+2% vs. 2023), reflecting growth in key categories.
  • GAAP net income declined to $1.98bn (-29% YoY), with diluted EPS of $3.95 (-24% vs. 2023), but Non-GAAP net income increased to $2.45bn (+8% YoY), with diluted EPS of $4.88 (+15% vs. 2023).
  • GAAP and Non-GAAP operating margins were 22.5% and 28.1%, respectively, maintaining profitability.
  • Free cash flow remained stable to $1.96bn (compared to $1.98bn in 2023), supporting long-term investments.
  • eBay returned $3.7bn to shareholders in 2024, including $3.1bn in share repurchases and $533m in dividends.
  • The company also expanded Klarna’s ‘Buy Now, Pay Later’ services across multiple European countries, enhancing payment flexibility.
  • Also, eBay expanded in the UK market by simplifying the listing process, removing final value fees for C2C sellers, and introducing eBay Balance and Managed Shipping for smoother transactions.

For Q1 2025, eBay anticipates revenue between $2.52bn and $2.56bn, reflecting stable platform engagement and continued marketplace activity. Gross Merchandise Volume (GMV) is expected to range between $18.3bn and $18.6bn, with FX-neutral growth of 0% to 1%. The company projects GAAP diluted EPS between $0.98 and $1.02, while Non-GAAP diluted EPS is expected to be between $1.32 and $1.36, maintaining profitability. Additionally, eBay has announced a dividend increase to $0.29 per share, payable on March 28, 2025, reinforcing its commitment to strong shareholder returns.

After the report was published, EBAY shares experienced a rather sharp decrease in price, by approximately -7%, attributed to obtaining results very slightly below analysts’ estimates, but investors took this aspect to heart. After this decrease, the stock price remained relatively constant, around $64.5, which makes it +34.3% higher than the same period last year.

Source: TradingView

Author: Ionuț-Adrian Lazar

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