Why stock declined: eBay Inc (NASDAQ: EBAY) stock fell over 2.1% on January 30th, 2019 (As of 10:56 am GMT-5; Source: Google finance). US generated $9.8 billion of GMV, down 1%. Further, Marketplace platform GMV grew 3% in Q4, a two-point deceleration vs. the prior quarter. US GMV was down 1%, a three-point deceleration from the prior quarter driven by a number of factors that Devin discussed earlier. Additionally, export headwinds continue to impact GMV growth on a year-over-year basis. International GMV a 5%, decelerating to points compared to Q3 with the UK and Germany decelerating roughly 2 points combined. In the fourth quarter the company has posted a non-GAAP operating margin of 29.2%, which is down 60 basis points compared to the last year with approximately one point a favorable impact from foreign exchange. Cost of revenue is nearly flat year-over-year as a percentage of revenue as investments in the first party inventory program in Korea were offset by customer service efficiencies. Q4 sales and marketing expense was up nearly 4 points compared to the prior year due to approximately three points of marketing promotional spending on the Marketplace and StubHub platforms and one point from the acquisition in Japan
EBay has reported the net income from continuing operations of US$763 million, compared with a loss of US$2.6 billion or US$2.51 per share, a year earlier, when it recorded a one-time tax-related expense of more than US$3 billion.
Moreover, during Q4 EBAY has enabled $24.6 billion of GMV, growing 2%, a three-point deceleration compared to the prior quarter. The growth was due to International, which delivered 14.9 billion of GMV, up 5%.
EBAY in the fourth quarter of FY 18 has reported the adjusted earnings per share of 71 cents. EPS growth was driven primarily by operational growth, the net benefit of share repurchases, benefits from our currency hedging program and a lower tax rate, partially offset by increased marketing expense and investments in our Payments initiative. The company had reported the adjusted revenue growth of 6.3 percent to $2.88 billion in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $2.66 billion.
EBAY has generated $1.1 billion of free cash flow up 39% in the fourth quarter of FY 18. The company has ended the quarter with cash and investments of $8.6 billion.