- Texas man arrested for powder-letter hoax
- Islamic State opens ‘marriage bureau’ for single jihadists
- Drone almost blocks California firefighting planes
- Tornado rips off roofs, downs trees near Boston
- GOP: Environmental rules keeping agents from accessing border
- John Kerry: Millions displaced by religious fighting in 2013
- Federal appeals court rules against Virginia’s gay marriage ban
- White House says Russia ‘losing’ war in Ukraine
- Hamas turns to North Korea for weapons deal, Iran for money
- Syrian casualties surge as jihadis consolidate
EBay’s 4Q performance caps company’s best year yet
Question of the Day
Revenue climbed 18 percent from the previous year to nearly $4 billion, in line with what analysts forecast.
As has been the case for some time, PayPal generated the greatest growth. Fourth-quarter revenue from the payment service totaled $1.54 billion, a 24 percent increase from the previous year.
PayPal, which eBay bought a decade ago, added 5 million more accountholders in the fourth quarter, its biggest three-month gain in eight years. The service now has about 123 million accountholders, many of whom contributed to the roughly 700 million payments processed by PayPal during the fourth quarter.
EBay is now trying to extend PayPal’s reach offline. The company already has struck agreements with 23 retailers, including Abercrombie & Fitch, Barnes & Noble, RadioShack and Home Depot, to accept PayPal in their stores. Beginning this spring, PayPal also will be accepted at retailers that take the Discover card.
The marketplaces division produced fourth-quarter revenue of $2.05 billion, up 16 percent from the previous year.
To start this year, eBay expects adjusted first-quarter earnings of 60 cents to 62 cents per share on revenue ranging from $3.65 billion to $3.75 billion.
Those figures are below analysts’ predictions calling for adjusted earnings of 64 cents per share on revenue of $3.8 billion. Donahoe said he believes some analysts neglected to consider that there will be one less day in this year’s first quarter coming off of 2012’s leap year and that online shopping is always sluggish on Easter Sunday, which is falling in March this year instead of April as it did last year.
For all of 2012, eBay earned $2.6 billion, or $1.99 per share, on revenue of $14.1 billion. With the Skype sale, eBay earned $3.2 billion, or $2.46 per share, in 2011. Revenue for that year totaled $11.7 billion.
TWT Video Picks
- White House says Russia 'losing' war in Ukraine
- Hillary Clinton: Forget Obama, George W. Bush made her 'proud to be an American'
- EPSTEIN: All IRS roads lead to the archivist
- HAYDEN: Intelligence, evidence and the case against Russia
- D.C. seeks to stay judge's order allowing gun owners to carry in public
- Border surge puts Obama legacy on immigration at stake
- Tactical advantage: Russian military shows off impressive new gear
- KUHNER: Will Russia-Ukraine be Europe's next war?
- Illegal immigrants demand representation in White House meetings
- 'Pocket drones': U.S. Army developing tiny spies for the next big war
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq