eBay reports strong revenue growth but lower net income due to increased expenses
From Barchart: 2025-01-08 13:30:02
- Ebay Inc. logo by JHVEPhoto via iStock. The company reported a 25% increase in revenue totaling $2.6 billion in the fourth quarter of 2020. This surpassed Wall Street expectations of $2.5 billion, driven by a surge in online shopping during the pandemic.
- Despite the positive revenue growth, Ebay’s net income fell to $781 million, down from $763 million in the same period last year. The company attributed this decline to higher operating expenses related to investments in marketing and technology to improve its platform and customer experience.
- Ebay’s gross merchandise volume (GMV) also saw a 21% increase to $26.6 billion in the fourth quarter, reflecting the strong demand for online shopping during the holiday season. The company’s active buyers grew by 7%, reaching a total of 185 million global users.
- Looking ahead, Ebay expects its revenue for the first quarter of 2021 to be between $2.94 billion and $2.99 billion. The company is focused on driving growth through strategic initiatives such as expanding its authentication program for luxury goods and enhancing its advertising capabilities to attract more sellers.
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