The outfit is apparently doing battle with a strong dollar and trying to improve its core marketplace business.
The online retailer, which faces intense competition from e-commerce giant Amazon.com is seeing competition from brick-and-mortar rivals like Wal-Mart Stores which are finally waking up to this Internet thingee.
Under its new chief executive Devin Wenig, eBay has returned to its roots, refocusing on unique inventory and smaller sellers.
Wenig said he was not too concerned. He wanted to grow the company’s metrics faster but he was pleased with where the company is now.
The company forecast full-year adjusted profit of $1.82-$1.87 per share and revenue of $8.5 billion-$8.8 billion.
That was lower than analysts’ average expectation of $1.98 per share in profit and $8.99 billion in revenue. In 2015, eBay reported $8.6 billion in revenue.
Its forecast for first-quarter adjusted profit of 43-45 cents per share and revenue of $2.05 billion-$2.10 billion also missed analysts’ average estimates.
This is the company’s second quarter without PayPal. eBay’s revenue was $2.32 billion in the fourth quarter ended December 31 which was flat with a year earlier during the crucial holiday shopping season and in line with analysts’ average expectations.
Online sales in the United States increased by nine percent to $105 billion in the November-December holiday period.
EBay began testing a paid shipping membership program in Germany last year, responding to shoppers’ increased demand for faster delivery.
Wenig on Wednesday said there were “no plans for now” to expand the program.
A lot of EBay’s problems is that it gets 60 percent of its revenue from overseas and faces headwinds from a strong dollar.
If you did not factor in the almighty dollar eBay’s revenue grew 5 percent in the quarter.
The company’s net income fell to $477 million, or 39 cents per share, from $1.02 billion, or 82 cents per share.