4th Quarter Earning–eBay Shows Strong Holiday Shopping and Mobile Growth

The holidays were good for eBay sellers. The online marketplace reported third-party sellers sold $19.1 billion worth of goods in the fourth quarter of 2012 alone. eBay earned $2 billion in revenue from its marketplace business with almost 60% of revenue coming from their international marketplaces. Not bad for a marketplace that saw the number of global active users grow 12% in just the fourth quarter with 112.3 million.

eBay contributed their international marketplace growth to site enhancements, emerging markets, and mobile devices. In fact, the company saw $13 billion in goods purchased from mobile devices with PayPal processing $14 billion in payment from smartphones and tablets. Although the company had forecast it would double mobile GMV to $10 billion in 2012, eBay’s CEO John Donahoe and his Chief Financial Officer Bob Swan emphasized the company’s strength in mobile is growing.  

Donahoe said eBay expects Marketplaces and PayPal to each exceed $20 billion in mobile commerce volume in 2013. “Web-enabled multichannel commerce is evolving quickly, and consumer shopping behavior is changing rapidly,” he said. “Our focus is on being a global commerce leader in this new environment, connecting buyers and sellers everywhere, and being a preferred multichannel partner of choice for retailers and brands of all sizes.”

All in all, eBay’s total revenue increased 18% to $4 billion and a net income of $751 million in the fourth quarter. For the full year, eBay’s revenue increased 21% ($14.1 billion) with a net income of $2.6 billion.

 

 


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