SAN JOSE, Calif. - eBay Inc (NASDAQ:EBAY) shares fell 7.7% in after-hours trading on Tuesday after the e-commerce giant provided weaker-than-expected revenue guidance for the first quarter, overshadowing its fourth-quarter earnings beat.

The company reported fourth-quarter adjusted earnings per share of $1.25, surpassing analyst estimates of $1.21. Revenue for the quarter came in at $2.6 billion, slightly above the consensus estimate of $2.58 billion and up 1% YoY on both an as-reported and FX-neutral basis.

However, eBay's outlook for the first quarter of 2025 disappointed investors. The company forecasts revenue between $2.52 billion and $2.56 billion, below the analyst consensus of $2.6 billion. This guidance implies a range of -1% to 1% YoY growth on an FX-neutral basis.

"eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics," said Steve Priest, Chief Financial Officer at eBay. "We created a solid foundation to build upon in 2025, and our outlook reflects our confidence in eBay's ability to drive sustainable, long-term growth."

The company's gross merchandise volume (GMV) for Q4 was $19.3 billion, up 4% on an as-reported basis and 3% on an FX-neutral basis. eBay's total advertising offerings generated $445 million in revenue during the quarter, representing 2.3% of GMV.

For Q1 2025, eBay expects adjusted earnings per share between $1.32 and $1.36, compared to the analyst consensus of $1.33.

The company repurchased $900 million of its common stock in Q4 and paid $128 million in cash dividends. eBay's Board of Directors has declared a cash dividend of $0.29 per share, payable on March 28, 2025.

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