eBay’s fourth quarter revenues rise 64% year over year

EBay reported another record fourth quarter, posting consolidated net income of $25.9 million on consolidated net revenues that rose 64% to $219.4 million from $134 million in last year’s fourth quarter. For the full year, eBay reported net income of $90.4 million on net revenues that rose 74% to $748.4 million from last year’s $431.4 million.

EBay was the top online destination for holiday shopping in 2001, logging in nearly 5 million unique daily visitors during December and supporting 300 million page views per day during the fourth quarter, 20% more than the previous quarter. The largest-selling categories in Q4 were eBay Motors, computers, consumer electronics, collectibles books/movies/music, sports equipment and toys.

“Our fourth quarter results capped off an outstanding year,” said Meg Whitman, CEO of eBay. “We have excellent momentum going into 2002 and feel confident with our long-term strategy, ongoing execution and the strength of our business model.”

Part of that strength is in the growing popularity of eBay’s fixed-price offerings, Buy It Now, Half.com and eBay stores, which have attracted a number of major retailers to the site this year for liquidation and initial sales. The fixed price offerings contributed more than 19% of merchandise sales in the fourth quarter, up from 16% in the previous quarter. In fact, average auction duration on eBay.com decreased almost 10% in December from December of 2000, largely due to the increasing use of the Buy It Now feature, which was offered on 45% of eBay listings in December. Buy It Now lets eBay shoppers skip the auction process if they’re willing to pay the fixed price on an item up front.

Merchandise sales at eBay reached $2.375 billion in the fourth quarter, up 69% over the year-ago number. It listed 126.5 million items, up 59%, and added 4.8 million registered users, bringing its user base to 42.4 million, up 88% over a year ago.

The company says it will invest in continued development of fixed price formats and other merchandising options in the near term. Other near-term investments will include international development and expansion, broadening and deepening category options, technology to improve users’ experience and attracting additional buyers and sellers to its marketplace.