ebay revenue down and still falling in 2025

[enduringclothingstudio]

 Not good for 2025 start either

[suelel1968]

Hot off the press.... 

[dissident_concepts]

eBay stock price got nuked today. Down 16% on the day roughly.

 

[moonlight-rhapsody]

The following table summarizes the allocation of net revenues based on geography

That’s an interesting turn of phrase.  The fact that each country has been “allocated” a net revenue figure makes me wonder if there has been some creative management of the figures. 

[suelel1968]

By the end of the year the UK business will have spent all that money and destroyed goodwill and introduced all the extra revenue streams to just about have level revenue with last year and almost certainly much higher costs. Good job!

[coyotetower]

Though its not really as Temu Local requires u to be vat registered. Well ebay need to stop being automated cuz now they have blocked my payouts for 5 days for........something lol

[jonatjonatjonat]

- figures are down = look how awful all these changes are ebay

- figures are up = quick need to crack open the bottle of mental gymnastics

[theelench]

I used to dabble in shares, there is usually a creative element to the earnings reports and even more so in the CEO's comments on them.  I once bought some shares in the company that owned an airport near me.  The reports were always glowing with optimism, right up to the one before the whole business went bust.  

As long as the real figures are in there somewhere they can be arranged to show them in their best light,, play up the good bits and only mention the bad bits in a few words at the end when most people's attention is wandering as they get bored.

I would like to see a direct comparison with the same quarter last year which is there and this year's previous quarters, to indicate the trend.  I'd also like to see an explanation of the basis on which the funds were allocated.  As a conglomerate it should be there somewhere although for tax reasons 'allocations' can sometimes be questionable IMO. 

[suelel1968]

 I used Copilot to write this as he is more awake than I am right now. Allocation is something they have to do according to accounting standards rather than do for manipulation purposes, but my defence stops there. I would think that there is much more "allocation" of costs in a company like Ebay than revenue. If they change accouting methodology they would have to declare it. 

Companies and regulators use various models to allocate global revenue:

Transactional allocation: Revenue is assigned based on where the sale occurred or where the customer is located.

Functional allocation: Based on the functions performed, assets used, and risks assumed by each entity.

Formulaic allocation: Uses predefined keys like headcount, asset base, or sales volume to distribute revenue across jurisdictions

[theelench]

Yes, I'd agree.  So there isn't any mention of ebay changing how it is doing their allocations this quarter compared with previous quarters ?

If not they are consistent, not moving things around to hide anything.  If they have made a change, they would have to make it reasonably obvious.  Not hidden away somewhere.

Nothing about the latest figures yet on the blog we mustn't name.  They're usually good at finding anything that ebay is trying to blur over.  I'll wait to see what they have to say before commenting again. 

[dissident_concepts]

Apparently no buyers for eBay today after that crash, usually you would expect to see a bounce after such a drastic sell off but nothing to note as of yet. Looking at a weekly time frame, from peak to peak, eBay is down almost 20% in 48 hours.

Pales in comparison to another online retailers weekly price action which seen upwards momentum pushing the stock up 12% on the week. Of course, the other online retailer has its fingers in other pie's so its hard to compare them evenly.

People at eBay are 100% getting fired. Expect some restructuring in the company in the coming months I would imagine.. The last time eBay seen such a drastic daily draw down in price was 2005, after that the stock fell another 74%.... (also partly due to GFC of 08/09)

Best of luck to eBay I suppose!

[lucy_farmer]

'As long as the real figures are in there somewhere they can be arranged to show them in their best light,, play up the good bits and only mention the bad bits in a few words at the end when most people's attention is wandering as they get bored.'

----------------------------------------------------------------------------------------------------------------

"Lies, dammned lies and statistics". !

Marketing is truly the world's most 'creative' business.

[the_book_seekers]

Looking at the Net Revenue by Geography table for the year to date figures - every geographical location apart from the UK has shown some kind of increase. The UK is down 45m so far. If the three months to September figures hadn't shown an increase of 25 m it would've been even worse. The next three months will be interesting.

[suelel1968]

@the_book_seekers hi, revenue will be higher than last year because it was free to sell last year.  I wonder if there will be any positive news in the seller update next Wednesday or Thursday .

[bojangled]

@suelel1968 

But didn’t the free to sell kick in for private sellers on the 1st October 2024?

So the Q4 comparison in the next release will be even more skewed.

Jo

[theelench]

Also, like last year, the general rate of inflation was around 3% and there have been 2 RM price increases that will have boosted ebay's revenue figures even if sales were actually static.

[suelel1968]

@bojangled yes, the revenue for Q4 wll not be like for like in that sense. This year should be knocking it out of the park by comparison. We can only guess at the breakdown of the numbers, but this year they have added advertising fees,  interest on delayed payments, monetised delivery, increased promotion fees and BPF. Comparison is difficult but cumulatively if sales were the same revenues would be increasing.