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How eBay Compares to the Competition on Key Metrics

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Amazon builds a loyal customer base via Prime

From America to China, the global e-commerce scene continues to heat up with competition, with JD.com (JD) joining forces with Tencent (TCEHY), Walmart (WMT) about to tackle Alibaba (BABA) in China, and Amazon (AMZN) pursuing live sports content in the United States to make its Prime program more appealing to more shoppers.

Through the Prime program, which costs $99 per year, Amazon is building a loyal base of retail customers. Prime members typically spend more money shopping on Amazon.com than non-Prime members.

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Earnings surpassed expectations

Where does eBay (EBAY) stand in the face of all this competition in its industry? A look at its latest financial scorecard reveals that the company is coping fairly well.

In 4Q17, eBay posted adjusted EPS (earnings per share) of $0.59, meeting Wall Street’s expectations. Its EPS improved from $0.54 a year earlier. In comparison, Amazon and Yelp (YELP) beat analysts’ EPS expectations in 4Q17, and Groupon (GRPN) and Walmart missed expectations by between $0.02 and $0.04.

Revenue growth accelerated

eBay generated $2.6 billion in revenue in 4Q17, a rise of 8.8% YoY (year-over-year) and in-line with analysts’ consensus estimate. Its revenue growth accelerated compared to 8.6% YoY in 3Q17 and 3.4% YoY in 4Q16.

Amazon’s revenue rose 38.2% and Yelp’s rose 12% YoY in 4Q17. Groupon’s revenue fell 3.5% YoY in 4Q17, while Walmart recorded a 4.2% YoY revenue rise in the comparable period.

The chart above shows eBay’s revenue trend over the last several quarters.

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