eBay Inc. (NASDAQ: EBAY) reported its fourth quarter and full year financial results for fiscal year 2017. For the fourth quarter, eBay reported results in-line with analysts estimates. In the earnings call, eBay also announced its split from Paypal. eBay shares surged 15 percent, while Paypal shares fell 6 percent.
For the fourth quarter, eBay reported revenue of $2.6 billion, increasing 9 percent year over year. eBay reported an EPS of $0.59, increasing 9 percent year over year.
Marketplace segment delivered revenue of $1.7 billion, increasing 8 percent year over year. Stubhub delivered revenue of $306 million, increasing 12 percent year over year.
eBay delivered a GAAP basis net loss from operations of $2.6 billion due to a one time charge of $3.1 billion from the tax reform of the Tax Cuts and Job Acts. Based on a Non-GAAP net income was $618 million.
Although eBay had fallen in-line with analysts’ estimates, investors had expected the company to report stronger revenues based off the recent holiday sales. The e-Commerce giant still delivered stronger gross merchandise volume of $24.4 billion, up 10 percent year over year.
In the fourth quarter, active buyers grew by 5 percent across all platforms, totaling up to 170 million global active buyers.
“Q4 was a record quarter for eBay, representing the fifth quarter in a row of volume acceleration in our US Marketplace,” said Devin Wenig, President and CEO of eBay Inc. “We have made great progress transforming eBay while delivering meaningful growth and we expect further acceleration in 2018 as we continue to execute our strategy.”
eBay also announced its decision to split from PayPal and transition into new system in 2021 with its new partner, Adyen. eBay and Paypal’s partnership will still run until mid-2020 and allow users to continue to use PayPal’s payment solution until 2023.
eBay transitioned to Adyen to benefit itself as well its customers to bolster satisfaction ratings. The transition will result in lower transaction fees, more management over funds, and larger geographic reach.
For the first quarter of 2018, eBay forecasts revenue between $2.57 billion and $2.61 billion and an adjusted EPS of $0.52 to $0.54. For the full year, eBay forecasts revenue between $10.9 billion and $11.1 billion and an adjusted EPS of $2.25 to $2.30.