eBay Outshines with Strong EPS

Core Insights - eBay reported better-than-expected financial results for Q4 2024, with Non-GAAP EPS of $1.25 and revenue of$2.6 billion, surpassing analyst estimates and its own guidance [2][3] - The company achieved a year-over-year increase in Non-GAAP EPS of 16.8% and a slight revenue increase of 0.7% [3][6] - eBay's GAAP operating margin improved significantly to 21.1%, up from 16.0% in the previous year [3][8] Financial Performance - Non-GAAP EPS reached $1.25, exceeding the estimate of$1.20 and up from $1.07 in Q4 2023 [3] - Revenue for Q4 2024 was$2.6 billion, slightly above the estimated $2.57 billion and a marginal increase from$2.56 billion in Q4 2023 [3] - GAAP operating margin improved to 21.1%, reflecting effective cost management [3][8] - Free cash flow was reported at $560 million, a significant recovery from a negative$3 million in the previous year [3] Business Overview - eBay operates a global digital marketplace, focusing on enhancing revenue streams through managed payments and advertising [4][5] - The Gross Merchandise Volume (GMV) rose by 4% year-over-year to $19.3 billion, indicating successful user engagement [7] Strategic Initiatives - The company is investing in AI-powered listing tools and partnerships, including integration with Meta Platforms' Facebook Marketplace, to enhance market exposure [7] - eBay's recent investments in the U.K. market aim to streamline seller processes and improve buyer experience [9] Shareholder Returns - eBay repurchased$900 million in shares and distributed $128 million in dividends during the quarter, highlighting its financial health [8] Future Outlook - Management projects revenue for Q1 2025 to be between$2.52 billion and $2.56 billion, with Non-GAAP EPS expected to range from$1.32 to $1.36 [10] - The company maintains a cautiously optimistic outlook for revenue growth, projecting modest negative to positive FX-neutral year-over-year growth of -1% to 1% [11]