Q4 net income jumped to $1.98bn/$1.51 a share from $559m/42 cents a year ago, On an adjusted basis, eBay said earnings were 60 cents a share, topping analysts’ view by three cents a share.
eBay said its profit leap was primarily due to the sale of its remaining interest in Skype, reporting roughly $2.3bn in proceeds from the sale for the quarter. Skype was purchased by Microsoft Corp last year for $8.5bn.
Revenue leapt 35%, its biggest increase in six years, to $3.38bn from $2.5bn a year ago. Analysts had been expecting $3.3nn in revenue.
eBay's core marketplaces business saw revenue rise 16% to $1.8bn in Q4 as, gross merchandise volume, or the total value of goods sold, was up 10%, excluding vehicles.
Its fast-growing PayPal division also saw revenue rise 28% on-year to $1.2bn and ended the quarter with 106.3m active registered accounts, a 13% gain.
The company's GSI business, which provides services to online retailers, also contributed $363.6m in revenue during the quarter.
"We are operating with discipline and clarity," eBay chief executive John Donahoe said.
EBay's results come a little more than two weeks after the company lost the head of PayPal payments unit, Scott Thompson, to head Yahoo.
Donahoe, who has also been overseeing PayPal, said during the conference call the company "will not skip a beat" as it transitions PayPal away from Thompson's leadership. "The PayPal leadership team has never been stronger," he said.
The company's current marketing campaign started last year is designed to reinforce the new image, and "position eBay as a destination with a great selection of new merchandise," Donahoe said during the call, adding that he's pleased with the effort.
eBay had been expected to provide a downbeat outlook, based on a strengthening dollar and turmoil in European markets.
The company said it expects adjusted earnings for the current Q1to range 50-51 cents a share, and revenue of $3.05bn-$3.15bn. Analysts, however, had been looking for 54 cents a share, and $3.16bn revenue.
In an interview with Dow Jones Newswires, Donahoe said the company is confident in its operations both in the US and in more troubled European markets.
"E-commerce has remained real strong across Europe over the last couple of years," as shoppers turn to the internet in order to "make their euros stretch.
"We're as well-positioned as anyone in a segment that has been growing strongly," he said, adding that budget-conscious consumers in all markets are seeking better prices online.
