The fourth quarter of 2018 saw a big improvement on the eBay marketplace, which raked in $2.88 billion (£2.19 billion) in total sales, beating analysts’ expectation of $2.86 billion (£2.18 billion).
The eCommerce company announced in their earnings report that the total number of active buyers on their marketplace increased to 179 million in the last quarter, which accounts for $2.3 billion (£1.75 billion) of their full year revenue of $10.7 billion (£8.16 billion).
According to the company, introducing new programs throughout the quarter helped improve the buying and selling cycle on their eCommerce platform.
During the company’s earnings conference call, President and CEO Devin Wenig said:
“We delivered record earnings for the fourth quarter and full year 2018. In 2019, our focus will be on further improvements to the eBay user experience, while pursuing significant long-term growth opportunities in advertising and payments.”
eBay’s revenues from other platforms, Stubhubs and Classifieds, which investment company Elliott Management urged them to separate from the marketplace, were $314 million (£240 million) and $263 million (£200 million), respectively.
For the full year of 2019, they are gunning for a net revenue between $10.7 billion (£8 billion) and $10.9 billion (£8.3 billion).
The eCommerce giant takes action on activist investor’s plea
In response to the letter which activist investor Elliott Management wrote them, suggesting that they increase their share repurchase to $5 billion (£3.8 billion), eBay added $4 billion (£3 billion) to their share repurchase program.
They said that they will return about $7 billion (£5.3 billion) to shareholders through dividends and buybacks over the next two years.
The ability to make that decision, according to Wenig, reflects the company’s confidence in the strength of their business and future growth prospects.
How did your sales go on the eBay platform throughout the last quarter of 2018? Share your experience with us in the comments below.
As always, to your continued success,
Dave & Matt