eBay (EBAY, Financials) shares dropped 2.5% to close at $69.14 on Wednesday, before plunging an additional 8.4% to $63.35 in after-hours trading following the release of its fourth-quarter and full-year 2024 earnings.

• Warning! GuruFocus has detected 6 Warning Sign with EBAY.

With gross merchandise volume up 4% to $19.3 billion, the business noted Q4 income of $2.6 billion, up 1% year over year. Non-GAAP profits per share came at $1.25; net income from ongoing operations was $680 million, or $1.40 per diluted share. Under GAAP, eBay's operating margin was 21.1%; non-GAAP it was 27%.

Full-year 2024 revenue was $10.3 billion, up 2%. Annual GMV rose 2% to $74.7 billion. Net continuous operations income was $2 billion, with non-GAAP earnings of $4.88 per diluted share. eBay generated $2.4 billion in operating and free cash flow.

In Q4 the firm paid back $1 billion to its owners, including $128 million in dividends and $900 million in share repurchases. eBay paid $533 million in dividends and bought $3.1 billion in shares overall during 2024.

eBay highlighted several strategic initiatives in the quarter, including extended European payment choices, AI-powered bulk listing tools, and a UK-focused investment for consumer-to-consumer sales. In Q4, advertising income came to $445 million; first-party ad goods accounted for $434 million, up 18% year-over-year.

With GAAP diluted earnings per share between $0.98 and $1.02, eBay estimates income between $2.52 billion and $2.56 billion for Q1 2025. Earnings per share non-GAAP should fall between $1.32 and $1.36.

Payable on March 28 to shareholders of record as of March 14, the business has announced a quarterly dividend of $0.29 per share.