Shulou(Shulou.com)11/24 Report--

On the morning of February 23, Beijing time, eBay today released the company's fourth quarter and full-year results for fiscal year 2022. According to the report, eBay's fourth-quarter net revenue was $2.51 billion, down 4% from $2.613 billion in the same period last year, and 1% year-on-year, excluding exchange rate changes. Profit from continuing operations was $671 million, compared with a loss of $893 million from continuing operations in the same period last year. EBay's adjusted net profit from continuing operations, not in accordance with Non-GAAP, was $581 million in the fourth quarter, down 10 per cent from $647 million a year earlier.

EBay's fourth-quarter results beat Wall Street analysts' expectations and revenue for the entire 2022 fiscal year also exceeded expectations, but full-year adjusted diluted earnings per share fell short of expectations. In terms of performance outlook, eBay gave a better-than-expected outlook for the first quarter of fiscal 2023. EBay shares fell more than 5 per cent in after-hours trading after the results.

Key points of financial report for the fourth quarter of 2022: profit / loss

For the quarter ended December 31, 2022, eBay made a profit of $671 million from continuing operations, compared with a loss of $893 million from continuing operations a year earlier, and diluted earnings per share of $1.23 from continuing operations, compared with a diluted loss of $1.47 per share in the same period a year earlier.

Excluding certain one-time items (not in accordance with GAAP), eBay's fourth-quarter adjusted net profit from continuing operations was $581 million, down 10% from $647 million a year earlier, and adjusted diluted earnings per share were $1.07, up 2% from $1.05 a year earlier, beating analysts' expectations. On average, 24 analysts had expected eBay's adjusted earnings per share to reach $1.06 in the fourth quarter, according to data provided by Yahoo Finance.

EBay's fourth-quarter operating margin was 22.5%, compared with 26.3% a year earlier, and 29.9% excluding certain one-time items (not in accordance with GAAP), compared with 31.6% in the same period last year.

Revenue

EBay's fourth-quarter net revenue was $2.51 billion, down 4% from $2.613 billion a year earlier, and 1% year-on-year, excluding currency changes, which beat analysts' expectations. On average, 23 analysts had expected eBay's fourth-quarter revenue to reach $2.47 billion, according to Yahoo Finance.

Costs and expenses:

EBay's total operating expenses were $1.264 billion in the fourth quarter, compared with $1.231 billion a year earlier. Of this total, eBay's fourth-quarter sales and marketing expenses were $554 million, compared with $569 million in the same period last year; product development expenses were $340 million, compared with $337 million in the same period last year; general and administrative expenses were $288 million, compared with $206 million in the same period last year; and the transaction loss reserve was $81 million, compared with $119 million in the same period last year. Amortization expense on acquired intangible assets was $1 million, compared with no such expense in the same period last year.

Operation data

EBay's total merchandise trading volume (GMV) in the fourth quarter was $18.2 billion, down 4 per cent from a year earlier, excluding exchange rate changes.

EBay's annual number of active buyers fell 9% in the fourth quarter, bringing the total number of global active buyers to 134 million.

Excluding the number of active buyers in eBayGittiGidiyor and TCGplayer, the number of annual active buyers in eBay fell by 8% in the fourth quarter, bringing the total number of active buyers worldwide to 132 million.

Other

The effective tax rate for eBay's continuing operations in the fourth quarter was 19.1%, compared with 23.1% in the same period last year; excluding certain one-time items (not in accordance with US GAAP), the effective tax rate for eBay's continuing operations in the fourth quarter was 16.5%.

EBay generated $686 million in operating cash flow from ongoing operations and $533 million in free cash flow in the fourth quarter.

In the fourth quarter, eBay bought back about 7 million common shares, with a total value of about $300m. As of December 31, 2022, eBay's approved remaining redeemable shares were worth more than $2.8 billion. In addition, eBay paid out a cash dividend of $119 million in the fourth quarter. As of December 31, 2022, the total value of cash and cash equivalents and non-equity portfolios held by eBay was $5.9 billion.

The Board of Directors of eBay announced that it will pay a cash dividend of $0.25 per share to ordinary shareholders of the Company, which will be paid to shareholders of record as of March 10, 2023 on March 24, 2023.

Key points of annual financial report for 2022:

-for the entire fiscal year 2022, eBay's net revenue was $9.795 billion, down 6% from $10.42 billion in fiscal 2021, and 4% year-on-year, excluding exchange rate changes, slightly exceeding analysts' expectations. On average, 29 analysts had expected eBay's full-year net revenue to reach $9.75 billion, according to data provided by Yahoo Finance.

-the total transaction volume of eBay for the whole year was US $73.9 billion, down 15% compared with fiscal year 2021, and 11% year-on-year excluding exchange rate changes.

-eBay posted a loss of $1.274 billion from continuing operations for the full year, compared with a profit of $252 million from continuing operations in fiscal 2021. For the full year, eBay's diluted loss per share from continuing operations was $2.28, compared with diluted earnings per share from continuing operations of $0.38 in fiscal 2021.

Excluding certain one-time items (not in accordance with GAAP), eBay's adjusted net profit from continuing operations for the full year was $2.312 billion, down 13% from $2.661 billion in fiscal year 2021; adjusted diluted earnings per share from continuing operations were $4.11, up 2% from $4.02 in fiscal 2021, which failed to meet analysts' expectations. On average, 27 analysts had expected eBay to earn $4.12 a share for the full year, according to Yahoo Finance.

-eBay's full-year operating profit margin is 24.0%, while the operating profit margin that is not in accordance with US GAAP is 30.0%.

-eBay's full-year operating cash flow from ongoing operations was $2.6 billion and free cash flow was $2.2 billion.

-for the full year of fiscal 2022, eBay returned more than $3.6 billion in cash to shareholders, including repurchases of common stock with a total value of approximately $3.1 billion and cash dividends of $489 million.

Performance outlook:

EBay expects net revenue of between $2.46 billion and $2.5 billion in the first quarter of fiscal 2023, which exceeds analysts' expectations of flat to 2% year-on-year growth, excluding currency changes. On average, 19 analysts had expected eBay's first-quarter net revenue to reach $2.37 billion, according to Yahoo Finance.

EBay also estimates that diluted earnings per share from continuing operations are expected to be between $0.77 and $0.81 per share in accordance with GAAP in the first quarter of fiscal 2023, while diluted earnings per share from continuing operations are expected to be between $1.05 and $1.09 without GAAP, with an average of $1.07 above analysts' expectations. On average, 20 analysts had expected eBay to earn $1.06 a share in the first quarter, according to Yahoo Finance.

Stock price:

On the day, eBay shares fell 4 cents, or 0.08 percent, to close at $47.85 in regular Nasdaq trading. EBay shares fell another $2.48, or 5.18%, to $45.37 in after-hours trading as of 04:42 EDT on the 22nd (05:42 Beijing time on the 23rd). In the past 52 weeks, the highest price for eBay is $60.39 and the lowest price is $35.92.

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