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.



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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.

Tue Jan 28 16:58:00 2020

After Hours real time stock quote: $35.21 -1.01 down 2.79%

GMV down even with the massive good til canceled fee churning that should pad earnings.

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

Tue Jan 28 17:02:10 2020

https://old.nasdaq.com/symbol/ebay/after-hours

stock price 34.80* down 1.42 per share down 3.92%

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by: RL15 This user has validated their user name.

Tue Jan 28 17:06:05 2020

even with the smoke, mirrors and fee churn the GMV down.

get rid of the former delusional ceo's anti seller initiatives maybe theGMV will go up.

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by: ebayout This user has validated their user name.

Tue Jan 28 17:27:40 2020

GMV, which has seller shipping costs baked in, was down 4%.
Shipping costs were up last year, gonna be worse this year.
So...do the extrapolated math. Was it really down 5%? 6%?

...which is why ebay will NEVER separate the shipping from it's GMV.

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

by: Shanna This user has validated their user name.

Tue Jan 28 17:29:32 2020

Remember also GMV does not take out returns, which eBay pushed at every buyer, as they make more money on shipping labels than FVFs.

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

by: Geetar This user has validated their user name.

Tue Jan 28 17:36:40 2020

wow. worse than I thought.

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: CanBrit

Tue Jan 28 17:49:36 2020

Actually, I thought it was going to be worse. Still padding the numbers of active buyers. I honestly don't know how Schenkel keeps a straight face. Thanking all those who helped this year to push the market forward (backwards). Lol.

I'm still gunning for you Jordan Sweetnam. GTC is going to be your doom. Currently avoiding it is my success! Go back to Walmart and start Greeting. 😘😘😘

That's all  you are good for. Wall Street take notice!!!

"

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.

Tue Jan 28 18:00:07 2020

The entire eBay disaster was caused by inept leadership from Donahoe to Wenig, now Schenkel who hides behind a curtain and continues Wenig lunatical programs, even promoting the failed initiatives to Wall Street. These dummies keep telling the very same lies, that 'eBay Payments' and 'Advertising' (Promoted Listings) are going to keep the Titanic afloat.

When you treat your best customers (sellers who also buy big) like they are gullible know nothings they quit spending money and then they move their inventory to other marketplaces.

Until eBay finds a CEO who is not a White Collar Criminal only interested in cashing in stock options, they will never turn this company away from ill advised schemes to skim fees from their best customers who are leaving in droves.

Even though we tell them every single day on this forum and on the eBay forums what is wrong, these MBA clowns still can't figure it out because they are blinded by their own greed and really think their idiotic ideas are good.

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

by: Carl This user has validated their user name.

Tue Jan 28 18:09:11 2020

Ouch.
Make that $34.30 -1.92 down 5.30%

Guess the spin didn't work this time...

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This user has validated their user name. by: CanBrit

Tue Jan 28 18:19:16 2020

We don't really mean "Ouch" though do we. Most of us have been waiting for a more truthful Quarter results. I don't think these are any near truthful, just a little closer to it. Schenkel couldn't afford to fudge this time.

Most of us were expecting (hoping?) for a downturn, because we've all experienced  abuse at the hands of eBay. This is like a tiny bit of just desserts.

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

by: ThebigR This user has validated their user name.

Tue Jan 28 19:01:35 2020

Compared to prior 31 days you up 216.3% market down 10%
Compared to same period a year ago You up 473.3% market up 4.4%
I just keep banging away...

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

by: Opalwinter This user has validated their user name.

Tue Jan 28 19:07:29 2020

As I was reading this thread, I received yet another message from a buyer unable to purchase an item from me.  A steady stream of buyers have contacted me about this since I signed up for managed payments.  One buyer tried for 10 days to buy something.  Keep in mind that only a motivated buyer would bother to contact me.  I don't know how many sales I have lost due to this issue.  Is eBay concerned about the GMV being down?

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by: Frank Abagnale This user has validated their user name.

Tue Jan 28 19:45:08 2020

Don't forget about all those buyer's coupons ebay issued including the ones where ebay actually lost money on the transaction. And I wonder how much GMV there was on all those sneakers that sold for over $100 where ebay received no commissions.

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

Tue Jan 28 20:15:54 2020

Frank Abagnale, the Titanic is sinking into the darkness due to Wenig's and Schenkel's bright ideas, yet they want to garner a higher take rate from sellers with some sellers reporting more than 33% of sales going to eBay fees.

The question is how are they going to get these fees from sellers who they are bankrupting?

The incompetent Board of Directors needs to do a lot more than sell Stub Hub, they need to clean house of the entire upper management team.

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: Ina

Tue Jan 28 20:28:55 2020

US sellers took a bigger hit than international sellers:

eBay GMV declined 8% in the US in the fourth quarter of 2019, executives revealed in the earnings call with executives, I updated the post above.

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

by: comments This user has validated their user name.

Tue Jan 28 20:59:05 2020

This is a monumental decline in the US. This decline considers that many more sellers were added to managed payments, return penalty fees, and the ever expanding promoted listings growth.

Very aggressive lobbying from ebay against internet sales tax is needed to hold politicians accountable. Just because they CAN charge internet sales tax doesn't mean they HAVE TO. More taxes and the preservation of WalMart's wealth is unpopular with voters.

Enforcement is needed on their drop ship policies for long term sustainability. There is only so many times ebay buyers can be fooled by buying an item on ebay only to learn some 3rd party seller bought it cheaper on amazon before they realize they should just go directly to amazon themselves.

Another important fact is that every "new - opened box" item on the site is just a used item where someone happened to save the box, if they even bothered to do that.


 

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by: Frank Abagnale This user has validated their user name.

Tue Jan 28 21:02:01 2020

Ecommerce grows about 15% year over year. I guess ebay's sales are bringing down that average.  

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

Tue Jan 28 21:19:58 2020

Drive all your sellers off the platform and bankrupt them with exorbitant fees then wonder why you have no inventory any longer and why your GMV is going down even when you are using fraudulent methods to increase your take rate.

Greed does terrible things to disrupt sound business logic, end the stock options for all eBay executives and you might turn this company around.

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by: stage_won This user has validated their user name.

Tue Jan 28 22:22:23 2020

All our higher education has been able to produce the last 40 years or so is nothing but many little tyrants who know nothing about real world economics. I walked away from ebay a few years ago after the stores debacle. That and the slow decline of the sell-through rates didn't make it worth paying the listing fees anymore. I know the shills will attack this saying you weren't doing it right but that's the kind of argument you'd get out of ebay itself.

It's just simple economics, the sell through rates were getting worse and not worth the value of all those listing fees. You could see ebay's mismanagement was having a bad effect on the sell through rates so really they were their own worst enemy. I had been doing things right since 1998 so I already had a lot of good years in already. All that work in the stores went poof overnight when they dramatically increased fees. All that work down the drain and sell-through rates declining, it was no longer worth it. It was time to get out and I did.

Like I said, it's simple economics or the higher the price, the less demand. The value in the price was how poor the sell through rates were getting. Since ebay started offering free listings, there must have been a bunch of sellers like myself no longer seeing the value in what ebay was doing and this was one incentive to get some back. The only reason I came back was I kept getting emails for those free listings. I checked and sell through rates were worse but with free listings it might be worth a shot.

It was good for awhile then ebay went back to their old deceptive ways and started backing down the free listings, then they went playing games with the listings sales where we had no clue when they would come and only give you a few days to prepare. Then you had to promote and pay for better exposure. So now they are playing games with the sellers with the exposure of their items. The latest games they are playing with is the fixed-price listing where they are auto renewed so they get the listing fees deceptively. Yes, they tell you can cancel them before the 30 days is up but what if something comes up and you can't get to them or a seller forgets? Ebay management is smiling because they deceptively got more listing fees to show the investors. This is about as crooked as it gets and I did report it to the DOJ Anti-Trust division and the investigation is ongoing. Actually there was some news a day or two ago where the DOJAT division was hiring more people to handle the abuse coming out of many Silicon Valley companies. That was good to hear.

In the meantime, I've been busy moving inventory over to another site and working to promote it. The good news is I've sold more there than on ebay and hope that trend continues.  

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

Tue Jan 28 22:26:12 2020

What's one to do?

It's not like I can just stop selling on eBay!

I had a good week last week, sold over $1000 between the 3 seller ID's

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