eBay Inc. stock research
FY2024 Q4
eBay (EBAY) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit increased from the prior quarter, driven by a lower cost of revenue, and was unchanged from a year ago, resulting in a gross margin that improved sequentially but was slightly weaker year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit increased from the prior quarter, driven by a lower cost of revenue, and was unchanged from a year ago, resulting in a gross margin that improved sequentially but was slightly weaker year-over-year.
- The primary driver of the sequential gross margin improvement was the reduction in cost of revenue while revenue remained flat, allowing more revenue to flow through to gross profit.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased. Compared to the same quarter last year, gross margin was slightly lower as cost of revenue was higher despite identical revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.2%
Gross profit
$1.9B
Revenue
$2.6B
Cost of revenue
$718.0M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.1 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, 2024 | $2.6B | $1.9B | $700.0M | 72.6% |
| Jun 30, 2024 | $2.6B | $1.8B | $735.0M | 71.4% |
| Sep 30, 2024 | $2.6B | $1.8B | $727.0M | 71.8% |
| Dec 31, 2024 | $2.6B | $1.9B | $718.0M | 72.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.4 pts
Year-over-year change
Dec 31, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the sequential gross margin improvement was the reduction in cost of revenue while revenue remained flat, allowing more revenue to flow through to gross profit.
Compared to the prior quarter, gross margin improved as cost of revenue decreased. Compared to the same quarter last year, gross margin was slightly lower as cost of revenue was higher despite identical revenue.
Monitor the trajectory of cost of revenue, which increased from a year ago and will be key to sustaining gross margin stability.