eBay Inc (NASDAQ:EBAY) reported “better than expected” fourth quarter results, according to the online retailer itself, as revenue and earnings per share came in above expectations.
The firm reported revenue of $2.51 billion, down 4% compared to the same period last year on an as-reported basis but above analyst expectations of around $2.46 billion.
eBay’s profits were higher compared to 4Q 2021 at $1.07, and above analyst estimates of $1.06.
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eBay CEO Jamie Iannone said that the group had made "significant progress on our multi-year strategic journey” in a statement accompanying the results.
"Our focus category playbook continues to drive underlying growth in our business and the investments we've made in core technology are enabling us to innovate on behalf of our customers more quickly,” Iannone told investors.
Its GAAP and Non-GAAP operating margin was 22.5% and 29.9%, respectively, and the company generated $686 million of operating cash flow and $533 million of free cash flow from continuing operations.
eBay's first-party advertising products, primarily driven by Promoted Listings, delivered $276 million of revenue in the fourth quarter, up 19% on an as-reported basis and up 27% on an FX-Neutral basis.
The company is anticipating between $2.46 to $2.5 billion in 1Q 2023 revenue, with profits between $1.05 to $1.09 on a diluted non-GAAP basis.
Shares of eBay slid 2.4% after the bell on Wednesday.
Contact Angela at angela@proactiveinvestors.com
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