Photo Credit: Mike Knell/Flickr.com

A recent Forrester report estimates that the US online sales will account for 17% of all US retail sales by the year 2022 from 12.7% in 2017. E-commerce player eBay (Nasdaq: EBAY) recently reported its fourth quarter results, that met market expectations.

eBay’s Financials

eBay’s revenues grew 9% over the year to $2.6 billion, in line with the Street’s expectations. This was the fifth consecutive quarter that eBay reported volume acceleration in its U.S. marketplace. Adjusted EPS of $0.59 was also in line with the market’s forecast for the quarter. Like others in the country, eBay is taking a $1.9 billion tax charge for the repatriation of its foreign earnings.

By segments, transaction revenues grew 8% to $2.04 billion. Marketplace transaction revenues grew 8% to $1.73 billion with international markets bringing in 61% revenues for the quarter. Stubhub transaction revenues grew 12% to $306 million. Revenues from marketing services and others grew 11% to $578 million driven by 21% growth in Classifieds revenue to $244 million.

Among operating metrics, eBay’s active buyers grew 5% to 170 million at the end of the quarter. Gross merchandise value transacted on the platform grew 9% to $23 billion. GMV for Stubhub improved 16% to $1.4 billion.

eBay ended the year with revenues growing 7% to $9.57 billion. EPS grew 6% to $1.88.

For the current quarter, eBay forecast revenues of $2.57-$2.61 billion with an EPS of $0.52-$0.54. The market was looking for revenues of $2.39 billion for the quarter with an EPS of $0.52. eBay expects full-year revenues of $10.9-$11.1 billion with earnings of $2.25 to $2.30 per share. The Street was looking for revenues of $10.28 billion for the year with an EPS of $2.23.

eBay’s Site Improvements

eBay’s performance in the quarter was driven by the improvements it has made on its digital storefront. This was the first quarter that eBay rolled out Group listings, which allows buyers to go through a product-based commerce experience on eBay.