Ebay Inc. posted a rise of 3.1% in its quarterly revenue during the holiday shopping season offering investors positive news as the revamped online marketplace was able to attract more buyers that helped to sell more products.
Ebay revamped its marketplace platform so it could compete better against its larger rival in e-commerce Amazon.com and traditional retailers.
Shares of the online marketplace rose by 7.5% in extended Wednesday trading.
Ebay spun off PayPal its main driver of growth during 2015 and the revamping of its platform allowed it to offer a larger selection of products as well as brands.
Now the marketplace also requires its sellers to provide more details about their items to attract the younger shopper and has lowered its listing costs.
The gross merchandise volume for the company, which is the total value of goods, sold for its sites increased 2.2% to end the quarter at $22.35 billion.
The net income for the company was up ending the quarter at $5.94 billion equal to $5.30 a share compared to $477 million equal to 39 cents a share for the same period one year ago.
The boost to net income was helped by a non-cash benefit of $4.6 million related to a legal realignment in its structure that mostly impacted international entities.
Excluding one-off items, the online marketplace had per share earnings of 54 cents that were in line with Wall Street estimates.
Revenue was up, ending the quarter at $2.4 billion compared to $2.32 billion for the same period a year ago and in line with analyst estimates of the same amount.
Ebay forecasted adjusted profit for the first quarter of between 46 and 48 cents a share with revenue of between $2.17 billion and $2.21 billion.
The marketplace forecast that its adjusted profit for the full year would be between $1.98 and $2.03 a share, which came up short of estimates of $2.05 a share with revenue between $9.3 billion and $9.5 billion against estimates of analysts of $9.35 billion.
This past holiday season was the first time the site ran a campaign of holiday advertising in the past two years. Its revamping of the platform including providing a better search functionality.
The revamping was not only to help in its battle against Amazon and other online marketplaces, but also to shift away from his long time reputation of a place that sells junk found in people’s garages.
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