Join        Login             Stock Quote

Peeling The Onion On Ebay's 2011 Q4 Results

 January 19, 2012 08:05 PM

Last evening, January 18, 2012, eBay released their Q4 2011 results.  

Here is how eBay did across the metrics we follow in the World of eBay Marketplaces:



While we don't cover it, PayPal continues to do very well and the GSI unit over-performed as well.   And with the eBay Marketplace, everything about the Q was very solid and ahead of expectations, with the exception of GMV growth in the US (in-line at 10% and below e-commerce's 15%) and Intl (below expectations at 9%).  I'm sure these results will continue the drum beat of people suggesting the company should split eBay marketplaces and Paypal.

[Related -eBay Inc (EBAY) Q4 Earnings Preview: About to Be Bid Lower?]

A deep-dive on eBay marketplace growth

One interesting part of the Q that sellers are already picking up on is this: "If GMV grew at 10% how did revenue grow at 16%?"  The answer is that eBay's effective 'take rate' (the % of revenue they make on GMV) went up pretty strongly for the Q - coming in at 7.9% (marketplaces) and 3.71% (paypal) for a total take rate of 11.61%.  There are a couple of factors that drive this:

  • As covered historically, eBay's July 2011 fee changes moved S+H into the take rate umbrella
  • FP vs. Auction - that mix of formats will cause a change
  • Category changes - some categories like CE have lower fees and as they decrease in mix for categories with higher take rates (e.g. jewelry and CSA), then you'll see the take rate nudge up.

[Related -ETF Periscope: Sentiment On Main Street At Odds With Jubilation On Wall Street]

That explains the disconnect between revenue and GMV, now let's look at why GMV came in at/below expectations for the Q.

Whenever we look at GMV growth we find it helpful to look at the category data.  Here's the eBay category data for Q4 - sorted by y/y category growth and color-coded - green grew faster than e-comm, yellow grew around e-comm and red was below 10%.

Next Page >>123
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

article imageTreasury Market’s Inflation Expectations Tumble

The odds for a Fed rate hike are falling like a stone, or so it appears based on the implied inflation read on...

article imageEmerging Market Stocks: Last Week’s Red-Ink Leader

Value investors on the lookout for bargains have recently been eyeing up the battered corner of emerging read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.