eBay Inc. stock research
FY2023 Q4
eBay (EBAY) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose slightly from the prior quarter and more notably from a year ago. Gross profit improved sequentially but was unchanged year over year, leading to a gross margin that strengthened from the prior quarter but was lower than the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose slightly from the prior quarter and more notably from a year ago. Gross profit improved sequentially but was unchanged year over year, leading to a gross margin that strengthened from the prior quarter but was lower than the same quarter last year.
- The sequential improvement in gross margin was supported by revenue growth that exceeded the change in cost of revenue, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue over that period.
- Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened as cost of revenue rose at a higher rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.3%
Gross profit
$1.9B
Revenue
$2.6B
Cost of revenue
$710.0M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $2.5B | $1.8B | $700.0M | 72.1% |
| Jun 30, 2023 | $2.5B | $1.8B | $718.0M | 71.7% |
| Sep 30, 2023 | $2.5B | $1.8B | $705.0M | 71.8% |
| Dec 31, 2023 | $2.6B | $1.9B | $710.0M | 72.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.5 pts
Year-over-year change
Dec 31, 2022
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was supported by revenue growth that exceeded the change in cost of revenue, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue over that period.
Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened as cost of revenue rose at a higher rate than revenue.
Monitor the trajectory of cost of revenue relative to revenue growth, as it has been a key factor in margin changes; the company's filing also notes that operating cash flows were influenced by a decline in operating income and working capital movements.