The e-commerce giant company, eBay, released its fourth quarter earnings call as it mostly met the market expectations, in some cases even surpassed them.
eBay Inc. is an e-commerce company. The multinational corporation is based in San Jose, California. eBay was founded back in 1995. Since then, it has been providing its services over the Internet. These include business-to-customer and customer-to-customer options.
Currently, the e-commerce company operates in more than 30 countries. eBay.com is perhaps the best-known company service.
On Wednesday, January 25, the multinational released its fourth quarter earnings report. The expectations were quite high as it also was the “holidays quarter”. And the company did not disappoint.
The company reports met and even surpassed expectation. Still, it also failed to meet them in some others. eBay quarter results are as follows.
eBay’s fourth quarter revenue came at $2.39 billion. Its value met most of the market estimates. Its gross merchandise value was slightly below expectations. The e-commerce company reported a $22.3 billion sum. Most estimates had placed it at $22.4 billion.
This gross merchandise volume denotes the value of all the products sold on the e-commerce platform. Even though it fell below expectations, the sum did increase. It registered a 5 percent year-to-year rise.
eBay also reported a higher user number. Around 2 million new active users are said to have joined the platform. As such, the service now has about 167 million active users. The user count beat market expectations. Wall Street analysts had estimated a total number of 162 million buyers.
Devin Wenig, the company CEO, released a statement. According to him, the company had a record quarter. Q4 was characterized by the solid performance of the eBay.com service.
Still, the company’s adjusted guidance for the next quarter is also below the market expectations. eBay’s Q1 of 2017 adjusted earnings fell lower than predicted. The company is expecting earnings of around 46 to 48 cents per share. Wall Street expectations had predicted a 50-cents per share adjusted value.
eBay reported an adjusted revenue value somewhere in between $2.17 to $2.21 billion. Market specialists are expecting a value of around $2.21 to $2.23 billion.
The company shares rose in the after-hours trading. They increased by 8 percent and reached a $32.65 value per share. eBay reported a $7.27 billion profit for the whole fiscal year. This equals a $6.35 per share value. Yearly revenue values were reported to be $8.98 billion.
eBay expects full-year earning in between $1.98 and $2.03 per share. The revenue is expected to come at around $9.3 to $9.5 billion. Company shares rose almost up to 2 percent since the year started.
Wenig, the aforementioned CEO, offered some further details. He stated that eBay.com was amongst the top shopping destinations during the holiday season. It was reportedly the second most visited e-commerce page in the United States.
According to Wenig, the company plans to accelerate its progress rate. The business strategy applied throughout 2016 will most likely continue being used in 2017.
Some of the new company initiatives revolve around “structured data”. This basically means that eBay improved its keyword tags. As such, it improved its search results visibility. This also makes it easier for users to find the website.
The company also developed and has a larger fixed-price merchandise business area. This increases its market competitiveness.
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