For FY 2022 Revenue was $9.8 billion, down 6% y-o-y. Gross Merchandise Volume was $73.9 billion, down 15% on reported basis. GAAP and Non-GAAP operating margin were 24% and 30% respectively. Annual active buyers declined by 9%, for a total of 134 million globally.
In Q4 2022, the company posted net revenues of $2.5 billion - down 4% y-o-y. It was due to a decline in website traffic, as compared to the previous year figure. Further, the gross merchandise value (GMV) was down 12% y-o-y in the quarter.
IT software and Services industries suffered from a fall in demand for software and web services in 2020, as consumers were solely focused on essentials and not discretionary products. That said, companies with a portfolio of software as well as services aimed at remote collaboration benefited due to the growing number of people globally. Further, Online marketplaces gained more traction due lockdown and restrictions in various regions leading to eBay gaining buyers. Notably, the elevated user traffic during 2020 and 2021 was the main reason behind revenue growth. However, with re-opening of offline retail stores and lifting of Covids-19 related restrictions, the top-line has suffered in 2022.
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eBay is known for operating the online marketplace eBay.com. The company's marketplace is where third-party buyers and sellers can transact in a variety of products including clothing, electronics, media, collectibles, automobiles and many other types of merchandise.
The payment services arm PayPal was spun off from eBay in 2015. eBay also divested its Enterprise business for a deal valued at $900 million in 2015. Accordingly we have excluded both these businesses in our valuation model.
The global e-commerce market is growing at healthy rates owing to growing popularity of online shopping. According to Morgan Stanley, the global retail e-commerce market is expected to cross $5.4 by 2026. In the event, eBay is able to overcome its challenges, it could benefit from this high demand in the market. However, owing to increased competition from Amazon, Alibaba and traditional retail giants, we expect eBay to under-perform the broader e-commerce market in the coming years.
Conversion rate is a key focus area for eBay, as it seeks to increase the success of sellers in converting listed items to sold items. eBay has implemented a number of features to increase the conversion rate on marketplaces and continues to improve customer experience on its marketplaces. eBay has also complemented these features with search engine optimization (SEO) changes and broadening its marketing channels to include social platforms.
