US e-commerce giant eBay Inc. reported better-than-expected earnings results for the fourth quarter of 2023, as the company benefited from strong holiday spending at home and growth in its main categories, such as refurbished goods and auto parts.
The San Jose-based online marketplace said revenue in the three months ending December 31 was $2.56 billion, surpassing analysts’ forecast of $2.51 billion.
Adjusted profit stood at $1.07 per share in the period, also beating expectations of $1.03 per share.
Gross merchandise volume (GMV) rose 2% to $18.6 billion in the fourth quarter, ending above estimates of $18.1 billion.
The firm’s board has also approved a $2.0 billion stock buyback, while it would increase its dividend by $0.02.
eBay Finds Strength in Increased Spending, Challenges Ahead
The positive fourth-quarter earnings indicated that eBay’s marketplace will likely gain on consumers’ increased spending amid a cooling economy.
eBay Chief Financial Officer (CFO) Stephen Priest said business began to fare better towards the end of November, particularly in the US, as shoppers sought value to stretch their holiday budgets.
The company’s marketplace is a crucial hub for purchases and sellers worldwide.
Still, the firm presented a lackluster performance in the UK and Germany, with the latter showing a downbeat e-commerce growth, according to eBay Chief Executive Jamie Iannone.
eBay let go of around 1,000 employees in January, cutting about 9% of its full-time staff. The move added the company to the over 60 tech firms, including rival Amazon.com Inc. and Alphabet Inc., that have laid off nearly 11,000 positions so far this year in anticipation of an uncertain economy.
Following significant job cuts in 2023, tech companies have continued downsizing last month due to consumer and business spending concerns.
Iannone stated at the time that the changes were tough, but he expects eBay to be ‘more focused, agile, and responsive’ in the months ahead, enabling it to progress towards their goal of providing economic opportunity for everyone.
