Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Jan 28 2020 16:49:13

eBay GMV Down 4 Percent in the Fourth Quarter 2019

By: Ina Steiner

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eBay posted its fourth-quarter 2019 financial results on Tuesday afternoon. eBay revenue was flat, and GMV was down 4%, on a foreign-exchange neutral basis.

GMV (gross merchandise volume) is the total value of all successfully closed transactions between users regardless of whether the buyer and seller actually consummated the transaction. 

Update 1/28/2020: eBay GMV declined 8% in the US in the fourth quarter of 2019, eBay revealed during an earnings call with Wall Street analysts on Tuesday.
That compares to a 1% decline internationally, making a total decline of 4% worldwide (FX-neutral).

A recap follows, first for the quarter (October, November, and December) and then for the full year 2019:

Fourth-Quarter numbers

- Q4-2019 Total Gross Merchandise Volume (GMV) was $23.3 billion, down 5% on an as-reported basis and down 4% on a FX-Neutral basis.

- Q4-2019 Marketplace platforms GMV was $22.0 billion, down 5% on an as-reported basis and down 4% on a FX-Neutral basis.

- Q4-2019 revenue was $2.8 billion, down 2% on an as-reported basis and remaining flat on a foreign exchange (FX) neutral basis.

Full-Year numbers

- Full Year 2019 GMV was $90.2 billion, down 5% on an as-reported basis and down 2% on a FX-Neutral basis.

- Full Year 2019 revenue was $10.8 billion, up 1% on an as-reported basis and up 2% on a FX-Neutral basis. 

The following is an excerpt of eBay's press release announcing earnings.

eBay Inc. Reports Fourth Quarter and Full Year 2019 Results

Q4 Revenue of $2.8 billion; GMV of $23.3 billion.

- Revenue of $2.8 billion

- GAAP and Non-GAAP EPS per diluted share of $0.69 and $0.81, respectively, on a continuing operations basis

- GAAP and Non-GAAP operating margin of 21.9% and 29.3%, respectively
Returned $1.1 billion to shareholders in Q4 and $5.5 billion to shareholders in 2019 through share repurchases and cash dividends

- Entered into a definitive agreement with viagogo to sell StubHub for a purchase price of $4.05 billion in cash

- Board of Directors declared a quarterly dividend of $0.16 per share, a 14% increase from the prior quarterly dividend, and expands share repurchase authorization by an additional $5.0 billion

eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its fourth quarter and full year ended December 31, 2019.

"I am proud of how well our teams have executed over the past year and the innovative solutions we have provided for our buyers and sellers," said Scott Schenkel, interim Chief Executive Officer of eBay Inc.  "As we enter 2020, our priorities are clear - we will continue to drive revenue through our growth initiatives, deliver more seller tools, improve the buyer experience by leveraging our structured data foundation, all while driving more margin expansion. We believe these efforts will position us for sustainable, profitable long-term growth and I am excited by the opportunities ahead."

Fourth Quarter Financial Highlights

- Revenue was $2.8 billion, down 2% on an as-reported basis and remaining flat on a foreign exchange (FX) neutral basis. Gross merchandise volume (GMV) was $23.3 billion, down 5% on an as-reported basis and down 4% on a FX-Neutral basis.

- Active buyers grew by 2% across eBay's platforms, for a total of 183 million global active buyers.

- Marketplace platforms delivered $2.2 billion of revenue, down 3% on an as-reported basis and down 1% on a FX-Neutral basis, and $22.0 billion of GMV, down 5% on an as-reported basis and down 4% on a FX-Neutral basis.

- StubHub platforms drove revenue of $321 million, up 2% on both an as-reported and a FX-Neutral basis, and GMV of $1.3 billion, down 5% on both an as-reported and a FX-Neutral basis.

- Classifieds platforms delivered revenue of $269 million, up 3% on an as-reported basis and up 6% on a FX-Neutral basis.

- GAAP net income from continuing operations was $558 million, or $0.69 per diluted share.

- Non-GAAP net income from continuing operations was $661 million, or $0.81 per diluted share.

- Generated $811 million of operating cash flow and $672 million of free cash flow from continuing operations.

Full Year Financial Highlights

- Revenue was $10.8 billion, up 1% on an as-reported basis and up 2% on a FX-Neutral basis. GMV was $90.2 billion, down 5% on an as-reported basis and down 2% on a FX-Neutral basis.

- GAAP and Non-GAAP operating margin was 21.5% and 28.2%, respectively, delivering on margin accretion commitments.

- Repurchased approximately $5.0 billion of its common stock and paid $473 million in cash dividends.

You can find the full announcement including business highlights, charts, business outlook, and dividend declaration on the eBay website.

Comments (80) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: eBay Shill Buster This user has validated their user name.

Wed Jan 29 18:14:44 2020

eBay has nothing but fees to list, Amazon offers all sellers unlimited free listings that are all good til canceled, until eBay offers the same, all the inventory is heading to Amazon, in the mean time Schenkel is still running Temken's and Wenig's automated good til canceled fee generation script thinking that is going to save eBay.

What a joke, sellers are pulling inventory and ending listings and taking everything to Amazon, Offerup.com and Letgo.com

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: iheartjacksparrow

Wed Jan 29 19:08:14 2020

@Geetar - Anaheim, California. My house is zoned residential, not even mixed use, so I have strict rules to follow (no signs with my business name out front, no people coming to my door, etc.). The city I moved from had a cap of $10K (not the reason I moved). At one point I had considered moving to Bellflower, but they don't even allow home businesses.  

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This user has validated their user name. by: toolguy

Wed Jan 29 19:16:46 2020

@iheartjacksparrow

What do you mean Bellflower doesn't allow home business???

I think that would be ILLEGAL

From the Bellflower Chamber of Commerce website:


How Can We Help?

Our moto is "Growing Together". We're here to help you grow your business and thrive. Whether you're an at home based business or large corporation, there's a place for you with the Bellflower Chamber of Commerce.



And NOWHERE on the City of Anaheim page do I see a limit on how much a home business can make. . . . .

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This user has validated their user name. by: iheartjacksparrow

Thu Jan 30 00:00:22 2020

@toolguy - From the Bellflower Home Occupation Permit Application: "There will be no products/goods stored, sold or displayed on the premises." So that means I would have to rent a warehouse or storage facility to keep all my merchandise in, and every time I sold something, I would have to run to the warehouse and pick up the item(s), come back home, and then pack and ship. Why on earth would I do that? Also, since most of my merchandise is on shelving units, labeled so they could easily be found, they would be considered to be displayed since anyone from the city could walk in and see them sitting there.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: Paul W This user has validated their user name.

Thu Jan 30 02:23:02 2020

All the Managed Payment bashers around here with their horror stories are folks who are NOT IN Managed Payments.  One of my stores HAS BEEN in MP for about 9 months and it works just fine.  Daily deposits into my free checking account, always within 3 days.  As soon as eBay works out all the kinks for international sales I'll happily move my anchor store to MP as well.  

I challenge any eBayer who IS in MP to tell us their story.  Those who aren't in MP, who therefore know not of what they speak, should just settle down.  All this bluster about leaving eBay because of MP is just silly..

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: shut1968 This user has validated their user name.

Thu Jan 30 02:24:52 2020

We'll see how this next year goes.. you know.. when they force out sellers by trying to force them in Managed Payments??  The interest they'll bring is free money for them but it wont offset the losses of sellers leaving.. I know we will be pulling out on the last day, that's a loss of 250k per year for them.. We shall keep hoping they will give it up and make it optional but if not soooo long.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: Silver Ice King This user has validated their user name.

Thu Jan 30 02:31:27 2020

@Iheartjacksparrow

I used to live in Long Beach and ran 2 businesses out of my home.  One was a service business where I went to the clients home or office so that I was able to avoid the excessive traffic to my home.  The other was selling on Ebay and never had any problems with the city over my items being stored in my garage (also where I did most of the work other than printing shipping labels).  

Another possibility for you could be to work out a deal with a storage facility where you can store your items but also have power for lighting and a small office area where you can do all of the work including packaging.  I had a client who did this for many years and his rent for the facility was only $250 month including utilities.  Since the inventory was stored in another city and his customers were all online there was no additional traffic of any kind at either facility so he did not draw attention from the city or his neighbors.  He lived in Torrance and if i remember correctly the storage facility was in Gardena and he was doing well over $100k gross a year.  Just a thought that might be feasible for you depending on what nearby cities allow as far as running your business from the Storage Facility.  His space was also inside so it was not obvious to passersby that his business even existed.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: eBay Shill Buster This user has validated their user name.

Thu Jan 30 09:25:49 2020

Paul W, it is not bluster, we have already moved the bulk of our inventory to Amazon as millions of other sellers have done, we will not be at the mercy of the White Collar Criminal Stooges running eBay. We see how inept they are daily, that have no idea how to run the eBay marketplace, that is why Wenig was fired and why the incompetent Board of Directors is looking for someone to lead this highly dysfunctional organization.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: Davina T This user has validated their user name.

Thu Jan 30 09:27:20 2020

I'm glad I quit selling. From now on, I buy, and bargain hunt to keep the lucky surviving Ebay sellers happy.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: iheartjacksparrow

Thu Jan 30 10:37:22 2020

@Paul W - I believe the "Mangled Payment Bashers" are afraid, given eBay's history of being hacked and losing information (photos; or was that another hack?), plus the glitches that occur on an almost daily basis, that the personal information they are required to provide to eBay will end up being compromised and their identity stolen. That's not an unreasonable fear since eBay doesn't seem to care what happens to their sellers.  

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: toolguy

Thu Jan 30 10:53:52 2020

@iheartjacksparrow

Your words: "At one point I had considered moving to Bellflower, but they don't even allow home businesses."

A good friend of mine is a free lance IT expert, he works out of his home in Bellflower (Lakewood & Alondra)

He has no inventory, he doesn't ship from home or have any clients come to his home. But yet he has a "home business" registered in Bellflower!

So your above statement is INCORRECT

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: Ebay Little Shop of Horrors This user has validated their user name.

Thu Jan 30 11:34:07 2020

Jeez, you still can't see item descriptions via phone?

I think they may be thinking streamling, simplifying, ease of transfer, down the road. Anyway, ...

I know something bout Schenkel. I never said anything before because I enjoyed watching and catching it, but I havent watched a quarterly report in a long time, so....

Schenkel has a give-away. His body language is perfect, eye contact, everything precision and practised, except his voice. It goes up when he says something hes uncomfortable with, like lying.

To me its like an octave, and its funny, but Ive had to spend a lifetime noticing these things.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: eBay Shill Buster This user has validated their user name.

Thu Jan 30 11:43:04 2020

After working under Wenig , with the new CEO still covering for his many criminal schemes before sellers and investors Schenkel could do Tiny Tim - Tip Toe Thru' The Tulips With Me, with all the lies he is telling he will hit higher notes than Tiny Tim ever did....

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by: Geetar This user has validated their user name.

Thu Jan 30 12:14:03 2020

@iheartjacksparrow

Wow, i had no idea. I did think about it once in a while. I live in NY, and sell in between 150k-200k a year. I dont know if it is legal in NYC, but have not had any problems.

I am looking to relocate to FLA because cost of living here in NYC is way too high. I guess that is something I should look into. If need be I would purchase commercial / mixed use. Anyone here know how it is in FLA?

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: toolguy

Thu Jan 30 13:31:59 2020

@iheartjacksparrow

I just got off the phone with the city of Bellflower

City Hall
16600 Civic Center Drive
Bellflower, CA 90706
(562) 804-1424

The planning dept. told me that technically you can't store items for sale on your property but they also said if my next door neighbor doesn't know I'm running a business out of my garage the city is OK with it. . . . .The city only gets involved if a neighbor complains!

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: eBay Shill Buster This user has validated their user name.

Thu Jan 30 13:48:52 2020

Even with the good til canceled fee churning script running since before Wenig was fired eBay earnings are down, sales are down for sellers and the Titanic is sinking into the darkness, eBay is very dead at this moment, ZERO sales are coming in. Sellers with eBay stores are being fee churned contrary to popular belief.

https://community.ebay.com/t5/Selling/GTC-is-costing-Me-and-eBay-money
-with-this-Bogus-policy-quot/m-p/30632743#M1541701

Jan 30, 2020 4:11:14 AM


My sales are down at least 50% since they implemented those bogus policies in 2019, Now instead of having over 1,000 listings per my store subscription I only keep about 900 so not to go over and be hit with those TRICKY fees. How does that help either of us. Just the other day over 200 listings got relisted under this head scratching policy when I stepped out for a bit so I had to end and relist them to get a new start date so that = 400 listings WOW ! (Who wants an old start date ~ looks like it has been around forever) Now I am out of my 1,000 listings and can't list any more without paying extra listing fees. (SO TIRED OF HAVING TO MONITOR MY LISTINGS THIS WAY)

I guess I will put all the new ones on a different site how unprofessional !!! (They loose out not me)

What a Blessing that this is not the only selling platform out there !!!!

Good Luck to all & Happy New Year

"They will Not keep us from Making Money just Making them Money"

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: iheartjacksparrow

Thu Jan 30 14:15:37 2020

@toolguy - I'm sorry, but I believe most people who have a home business would be selling out of their home by mail, or making items in their home to sell online or craft fairs or swap meets or whatever. So for a city to say you can have "home" business but won't allow you to run it out of your home is kind of ridiculous, wouldn't you say?  

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

by: DingDong This user has validated their user name.

Thu Jan 30 16:03:22 2020

@Paul W
Why don't you post on eBay's Managed Payment boards to have the fellow MP sellers post on this site their experiences with managed payment - good or bad or ?
They can set up a different ID here so that if eBay checks here that they won't get "hit"

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: iheartjacksparrow

Thu Jan 30 16:42:55 2020

toolguy writes: "The planning dept. told me that technically you can't store items for sale on your property but they also said if my next door neighbor doesn't know I'm running a business out of my garage the city is OK with it. . . . ."

So you'd advocating that I violate the rules of a city and possibly ruin my business? Is that another one of your brilliant business ideas like not collecting sales tax and possibly spending the rest of your life in prison? No thank you. I don't need your help in running my business; I've been doing fine without you for decades.

Perminate Link for eBay GMV Down 4 Percent in the Fourth Quarter 2019   eBay GMV Down 4 Percent in the Fourth Quarter 2019

This user has validated their user name. by: iheartjacksparrow

Thu Jan 30 16:45:23 2020

In other news, Amazon's business is up 21% YOY.

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