eBay Inc (NASDAQ:EBAY) stock fell 1.74% (As on Feb 24, 11:08:13 AM UTC-4, Source: Google Finance) after the company forecast bleak first-quarter results, as the e-commerce platform tackles waning online demand, stiff competition and global supply chain disruptions. Further, gross merchandise volume, the total dollar value of sales on eBay from which the company takes a percentage, fell 10% to $20.7 billion. Annual active buyers on eBay also declined 9% to 147 million in the quarter.
EBAY in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of 99 cents. The company had reported the adjusted revenue growth of 5 percent to $2.61 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $2.47 billion.
EBay expects first-quarter adjusted profit in the range of $1.01 to $1.05 on revenue of $2.43 billion to $2.48 billion; both estimates came in below Wall Street’s expectations.
Meanwhile, the company has completed the sale of 80.01% of eBay Korea to Emart for approximately $3.0 billion and retained 19.99% interest, valued at approximately $725 million as of the end of the quarter. eBay has also completed the sale of approximately 135 million shares of its Adevinta stock to Permira for over $2.3 billion, reducing eBay’s ownership of Adevinta to 33%. eBay has acquired Sneaker Con’s authentication business, Sneaker Con Digital, with operations in the U.S., U.K., Canada, Australia and Germany.
Additionally, eBay completed its transition to a modern payments platform by migrating all remaining sellers off of the legacy system. As a result, managed payments delivered $2.0 billion in revenue in 2021 and the company vested in and exercised the first tranche of the Adyen warrant, worth nearly $1.1 billion as of December 31, 2021. Promoted Listings delivered approximately $227 million of revenue in Q4, up 5% on an as-reported basis and up 4% on an FX-Neutral basis. The company’s advertising offerings surpassed $1 billion in revenue for the year.
In addition, during the quarter, eBay expanded its authentication of luxury watches to the U.K. and Germany. The company also began authenticating cross-border sneaker transactions into the U.S. and cross-border luxury handbag imports from Japan. eBay saw faster GMV growth in focused categories that now represent approximately 20% of global volume. The launch of videos in the eBay app, eBay further enabled video playback on desktop and mobile web in the U.S., Canada, U.K., Germany and Australia. To date, the company has seen hundreds of thousands of listings add video content.