eBay has generated “record earnings” in Q4, with the period ending December 31 seeing the business generate $2.9 billion in revenue.
The online marketplace has released its global earnings for the quarter ending December 31, claiming the business grew its active buyers by four percent to a total of 179 million buyers worldwide. Its marketplace platforms reportedly delivered $2.3 billion of the company’s total revenue and $23.2 billion GMV. On an as-reported basis, the marketplace’s revenue increased by seven percent, or six percent on an FX-Neutral basis.
For the full year, eBay recorded total revenue of $10.7 billion, representing an eight percent growth on an as-reported basis and five percent on an FX-Neutral basis.
According to Devin Wenig, the president and CEO of eBay, the business’s performance over the key Christmas quarter has helped the company deliver its best Q4 and full-year earnings recorded.
“We delivered record earnings for the fourth quarter and full year 2018,” he said in a statement. “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,” he continued.
During 2018, eBay says it returned $4.5 billion of capital to shareholders through repurchases of its common stock, which Wenig believes will improve the company’s growth prospects moving forward, especially when combined with the business’s “first-ever dividend”.
Over the last few months, eBay has also reported positive performance in its advertising and payment sectors. In Q4, the business saw a boost of almost 150 percent in revenue for promoted listings, as 600 thousand active sellers advertised 200 million product listings. The company also noted that the “multi-year rollout” of its managed payments capability marks an important shift in the business’s overall strategic direction and commitment to enhancing overall customer experiences. This contributed to eBay intermediating nearly $140 million in GMV during Q4.
The company’s strong performance at the end of 2018 follows on from similar growth in Q3, when the company recorded revenue growth of six percent on an as-reported and foreign exchange neutral basis. However, Christmas trade did see the company increase its Q3 revenue of $2.6 billion to Q4 revenue of $2.9 billion.