US' eBay posts $5.31 bn H1 revenue, Q2 earnings surpass expectations
The operating expenses rose to $2.71 billion, driven by modest increases across all categories including product development ($783 million), general and administrative expenses ($632 million), and sales and marketing ($1.12 billion).
The operating income of the company stood at $1.1 billion, and it reported a net loss of $6 million on equity investments and warrants, while interest expense totalled $123 million, partially offset by $140 million in interest income and other gains. As a result, income from continuing operations before taxes increased to $1,111 million. After accounting for a $237 million tax provision, eBay's net income rose to $871 million.
American e-commerce giant eBay Inc has reported H1 FY25 revenue of $5.31 billion, up 3.5 per cent YoY, with net income rising to $871 million. Q2 revenue rose 6 per cent to $2.7 billion, with GMV at $19.5 billion and non-GAAP EPS of $1.37. The company expanded eBay Live, boosted ad revenue, and strengthened its Klarna partnership. Q3 revenue is projected between $2.69â€'$2.74 billion.
Earnings per share (EPS) in the first half (H1) improved, with basic EPS reaching $1.87 and diluted EPS at $1.84.
For the second quarter (Q2), the company posted a robust result, with revenue rising 6 per cent YoY to $2.7 billion and gross merchandise volume (GMV) reaching $19.5 billion. On a foreign exchange-neutral basis, both revenue and GMV were up 4 per cent. The company delivered GAAP earnings per share (EPS) of $0.79 and non-GAAP EPS of $1.37.
The net income from continuing operations surged 63 per cent YoY to $369 million on a GAAP basis and 7 per cent to $643 million on a non-GAAP basis. Operating margins stood at 17.7 per cent (GAAP) and 28.4 per cent (non-GAAP), the latter improving from 27.9 per cent in the same quarter last year.
Operating expenses in Q2 totalled $1.5 billion. This included $586 million in sales and marketing, $421 million in product development, $371 million in general and administrative expenses, and $86 million in provisions for transaction losses. Basic and diluted EPS in Q2 were $0.8 and $0.7, respectively.
The company officially launched eBay Live in the UK at Comic-Con London and kicked off eBay Live on Tour in the US, bringing next-generation livestream shopping and collector-focused experiences to consumers across cities, eBay said in a press release.
The Authenticity Guarantee programme inspected over one million items in a single quarter, supported by luxury apparel authentication in the UK and expanded eligibility for streetwear in the US.
The advertising revenues of the company reached $482 million, representing 2.5 per cent of GMV, with first-party ad products delivering $455 million—up 19 per cent as-reported and 17 per cent FX-neutral. eBay also expanded its Klarna partnership, strengthening Buy Now, Pay Later services across the US.
The company also released its 2024 Impact Report, underlining its focus on economic opportunity, sustainable commerce, and workforce inclusivity.
'eBay delivered another strong quarter, with results exceeding expectations across the board,' said Jamie Iannone, chief executive officer (CEO) at eBay . 'Our momentum reflects the strength of our strategic execution and the resilience of our marketplace. We remain focused on driving long-term growth and creating lasting value for our shareholders.'
'I am thrilled to have stepped into the role of CFO at such an exciting time for eBay, and the innovation, operational discipline and customer focus I've seen across the company are truly energising,' said Peggy Alford, chief financial officer (CFO) at eBay . 'With a strong balance sheet, focused strategic priorities and a world-class team, we are well positioned to thrive in our next phase of growth. I am committed to driving operational excellence and disciplined capital allocation to support our long-term ambitions and unlock meaningful value for our shareholders.'
For the third quarter (Q3) of FY25, eBay expects revenue between $2.69–2.74 billion and GMV of $19.2–19.6 billion, both reflecting FX-neutral growth of 3–5 per cent. The company forecast GAAP EPS of $0.97–1.02 and non-GAAP EPS of $1.29–1.34.
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