eBay Ends 2009 on a High Note

Revenue increase of 16% sets the tone for an overall positive 4Q.

by Auctiva.com staff writer
- Jan 21, 2010

2009's fourth quarter proved to be lucrative for eBay, as the company's revenue increased by 16 percent compared to 2008's fourth-quarter numbers, the company reported Wednesday.

In all, eBay tallied $2.4 billion in revenue from Oct. 1 to Dec. 31, bringing the company's total revenue for 2009 to $8.7 billion.

PayPal was a big earner for eBay during the fourth quarter, helping the company net $795.6 million from its payment companies—a 28-percent increase compared to the year before, according to John Donahoe, eBay's president and CEO.

"We delivered a strong fourth quarter with double-digit revenue growth, driven by exceptional performance at PayPal and turnaround progress and momentum in our core Bay business," Donahoe says. "PayPal significantly expanded its presence globally and, for the first time, processed more than $20 billion in total payment volume in a quarter.

"Gross merchandize volume and sold items accelerated for the third consecutive quarter," he adds. "We are starting 2010 with significant progress against our three-year growth strategies for PayPal and eBay, and a clear focus on our priorities going forward."

eBay's marketplaces division—which includes eBay.com, Shopping.com, StubHub, Kijiji and others—accounted for $1.5 billion in revenue, a 15-percent year-over-year increase. eBay officials expect the company's revenue to reach between $2.1 billion and $2.2 billion during its first quarter this year, and estimate it will generate between $8.8 billion and $9.1 billion in revenue throughout 2010.


About the Author

Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.

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