• Gross Merchandise Volume (GMV): Grew over 2% to $19.3 billion in Q4 2024.
• Revenue: Increased by 1% to $2.58 billion in Q4 2024.
• Non-GAAP Operating Income: Grew approximately 2% to $698 million in Q4 2024.
• Non-GAAP Earnings Per Share (EPS): Increased over 16% to $1.25 in Q4 2024.
• Shareholder Returns: Returned more than $1 billion through repurchases and dividends in Q4 2024.
• Advertising Revenue: Grew nearly 12% to $445 million in Q4 2024.
• Free Cash Flow: Generated $560 million in Q4 2024 and nearly $2 billion for the year.
• Cash and Investments: $7.2 billion at the end of 2024.
• Gross Debt: $7.4 billion at the end of 2024.
• Active Buyers: Grew over 1% to nearly 134 million in Q4 2024.
• Take Rate: 13.3% in Q4 2024, about 40 basis points lower year over year.

• Warning! GuruFocus has detected 6 Warning Sign with EBAY.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• eBay Inc (NASDAQ:EBAY) achieved three consecutive quarters of positive growth in gross merchandise volume (GMV), with a full-year GMV increase of over 1% to $75 billion.
• The company saw a significant acceleration in focused category volume, which grew by 5% in 2024, driven by innovations and strategic investments.
• eBay Inc (NASDAQ:EBAY) launched its first proprietary large language models, enhancing productivity in engineering and customer service, and improving search efficacy.
• The company expanded its AI-powered tools for sellers, with the majority now using features like magical listing and AI-enhanced product backgrounds.
• eBay Inc (NASDAQ:EBAY) returned nearly $3.7 billion to shareholders through repurchases and dividends, while growing non-GAAP earnings per share by 15% to $4.88.

Negative Points

• The macroeconomic environment remains challenging, particularly in Europe, with lower consumer confidence and GDP growth impacting performance.
• The UK C2C initiative created a temporary headwind for take rate, affecting revenue growth in the short term.
• eBay Inc (NASDAQ:EBAY) faces uncertainties related to US tariffs and de minimis changes, which could impact GMV growth.
• The company anticipates a 0.5 point headwind for full-year gross and operating margins due to depreciation dynamics.
• Managed shipping in the UK is expected to negatively impact operating margins by roughly 30 basis points due to gross revenue recognition.

Q & A Highlights

Q: Can you size eBay's position and exposure to changes in de minimis shipping, specifically to China? A: James Iannone, CEO, explained that the China to US corridor makes up approximately 5% of eBay's total GMV, with China overall being less than 10%. About three-fourths of Greater China volume is forward deployed and subject to tariffs. eBay is confident in its ability to help sellers and buyers navigate changes in tariff policies with minimal disruption.

Q: How is eBay approaching the changes in the e-commerce discovery funnel with technologies like ChatGPT? A: James Iannone, CEO, stated that eBay is collaborating with OpenAI and sees this as an opportunity to allow sellers greater exposure to diverse buyers. eBay is also building its own agentic technology to improve the shopping experience and sees these collaborations as another channel to acquire new buyers.

Q: What are the expectations for focus category growth in 2025? A: James Iannone, CEO, expressed confidence in continued momentum in focus categories, which grew 5% in 2024. eBay plans to invest in existing and new categories, with a focus on non-new in season items, which are expected to grow faster than new in season.

Q: Can you provide more details on the Facebook Marketplace partnership? A: James Iannone, CEO, explained that the partnership allows eBay sellers to benefit from Facebook's scaled audience. The partnership is not simply about buying ads but about broadening seller reach. While it's still early days, eBay is encouraged by the initial results and is gradually scaling up the test.

Q: How is eBay leveraging AI for platform improvements and cost efficiencies? A: James Iannone, CEO, highlighted that eBay's AI models in 2024 were 100 times larger than in 2023, improving accuracy and reducing latency. Over 10 million unique sellers have used GenAI features, creating over 100 million listings. AI is also being used to enhance consumer-facing features and internal processes, with significant improvements expected in 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.