Latest news with #JamieIannone
Yahoo
02-05-2025
- Business
- Yahoo
For eBay, experiences are all about AI
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. AI has become so widely used throughout eBay, that it's easier to 'ask which teams are not leveraging AI' than to list the teams or experiences that do, President and CEO Jamie Iannone said during a Q1 2025 earnings call Wednesday. EBay has broadly rolled out AI to improve experiences for sellers and buyers in areas ranging from product feeds to customer service. One example is Magical Listings, which uses AI to simplify the product listing process. More than 10 million unique sellers have used the tool to create over 200 million listings. EBay's is backing up its AI-powered investments with organizational changes. The company is combining its product and market teams to improve its speed, alignment and customer centricity, according to a Wednesday announcement. Jordan Sweetnam will lead the newly combined global markets and product team as chief commercial officer, while Chief Product Officer Eddie Garcia will leave the company. 'I am deeply grateful to Eddie for his outstanding partnership and visionary leadership in shaping our product strategy, which has significantly advanced eBay's offerings and customer experience,' Iannone said during the earnings call. 'He has built a world-class team, and his legacy positions us well for future success.' CFO Steve Priest will also leave the company on July 31. Until then he will remain with the company in an advisory position to help onboard incoming CFO Peggy Alford, who will join on May 12. The executive changes follow on the heels of first quarter financial results that topped expectations. Revenue grew 1% year over year to $2.6 billion, according to a company earnings report. The company recently launched browsing pages for used apparel that use dynamic content organized by themes and subcategories, according to Iannone. The new apparel feed progressively loads visual and interactive content as users browse the page, and it can offer content including autoplay videos, promotions and curated compositions. The change builds on the launch of two other AI-powered fashion features introduced last year. Shop the Look lets customers see what different items would look like together, while Explore recommends options based on a customer's input such as a customer's size and preferred styles. More updates are planned for the fashion shopping experience in the future. 'Throughout 2025, you'll see more innovation in fashion as we work towards solidifying our platform as the trusted destination for pre-loved branded fashion products, where customers can truly shop head-to-toe across a breadth of brands and price points,' Iannone said.
Yahoo
01-05-2025
- Business
- Yahoo
eBay Inc (EBAY) Q1 2025 Earnings Call Highlights: Strong Growth in GMV and Earnings Amid Market ...
Revenue: Increased over 1% to $2.58 billion. Gross Merchandise Volume (GMV): Grew nearly 2% to $18.8 billion. Non-GAAP Earnings Per Share: Grew by 10% to $1.38. Non-GAAP Operating Income: $771 million. Capital Returned to Shareholders: Approximately $760 million through repurchases and cash dividends. First Party Advertising Revenue: Grew 14% to $418 million. Free Cash Flow: $644 million. Cash and Non-Equity Investments: $6.2 billion at the end of the quarter. Gross Debt: $6.7 billion after paying down $800 million of senior notes. Equity Investments: Valued at over $1.1 billion, with a significant stake in Narulia valued at nearly $900 million. Take Rate: Approximately 13.8%, increasing nearly 10 basis points year over year. Active Buyers: Grew over 1% to 134 million. Dividend: Quarterly cash dividend of $0.29 per share. Warning! GuruFocus has detected 9 Warning Signs with EBAY. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. eBay Inc (NASDAQ:EBAY) reported its fourth consecutive quarter of positive gross merchandise volume (GMV) growth, with a nearly 2% increase to $18.8 billion. Revenue increased over 1% to $2.58 billion, and non-GAAP earnings per share grew by 10% to $1.38. The company returned approximately $760 million to shareholders through repurchases and cash dividends. Focus category GMV grew by over 6%, with collectibles being a significant contributor, particularly in trading cards. eBay Inc (NASDAQ:EBAY) continues to innovate with AI-powered shopping experiences and strategic partnerships, enhancing customer experience and marketplace efficiency. Tariffs and changes to customs requirements in the US have created uncertainty for small businesses and weighed on consumer confidence. The macro environment remains uncertain, with uneven demand and potential impacts from trade policy changes. International markets, particularly Germany and the UK, are experiencing weaker macroeconomic conditions compared to the US. Non-GAAP gross margin declined due to headwinds from depreciation expense and traffic acquisition costs. The UK C2C initiative pressured overall take rate by approximately 30 basis points in Q1. Q: How is eBay addressing demand elasticity in an environment where pricing might increase significantly? A: Jamie Iannone, CEO, explained that eBay is in a strong position due to its vast global seller base and CBT shipping solutions. The platform's inventory of used and refurbished goods, which is growing faster than new goods, provides value to consumers during uncertain times. eBay also attracts new sellers looking to generate income, enhancing its resilience. Q: What is the impact of China tariffs on eBay's business, particularly for China-based exporters? A: Jamie Iannone noted that the Greater China to US corridor accounts for about 5% of eBay's total GMV. Most of this is already subject to tariffs, and eBay's Speed pack shipping solution helps manage tariff complexities. The platform's global inventory allows for substitution, mitigating potential impacts. Q: How is eBay's advertising revenue affected by tariffs, especially from China-based merchants? A: Jamie Iannone stated that there has been no material impact on advertising revenue from tariffs. eBay's advertising demand is distributed across a large seller base, and the platform continues to see strong adoption of its ad products, with over 3.7 million sellers using at least one promoted listing product. Q: How does eBay view the potential impact of agentic commerce on consumer shopping behavior? A: Jamie Iannone highlighted eBay's use of agent technology across various functions, including marketing and customer support. The company is exploring partnerships and internal developments to leverage AI and agentic commerce, enhancing customer experience and operational efficiency. Q: What is eBay's strategy for leveraging its inventory of pre-owned and refurbished goods? A: Jamie Iannone emphasized eBay's focus on marketing the value proposition of pre-owned goods, both for buyers and sellers. The company is investing in AI-powered tools like magical listing to simplify the selling process and unlock more inventory, aiming to capitalize on the significant C2C market opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Sports Cards Lead eBay Growth as Goldin, PSA Drive Volume
Sports cards highlighted eBay's start to 2025, helping the sales platform post first-quarter revenue and profit that beat Wall Street expectations. 'We're really pleased with the trading cards growth. It grew healthy double digits year-on-year in Q1, and growth accelerated for the ninth straight quarter,' eBay CEO Jamie Iannone said in response to a question from Deutsche Bank analyst Lee Horowitz on an earnings call Wednesday evening. 'What I feel really good about … is that the growth in trading card volumes that we've seen in recent quarters has been mostly driven by sold item growth, not just [average sale price]—which signals the growth is more sustainable.' More from Trump Tariffs Hit Big Names as Sports Stocks Flounder in April Evan Turner Defeats Former Agent in Chinese Shoe Stock Sale Dispute Most Expensive Sports Memorabilia and Collectibles in History While eBay didn't disclose specific figures for trading cards, management said sports cards were the largest contributor to sales growth on the platform for the second straight quarter. The business overall posted revenue of $2.59 billion in the period ended March 31, up about 1%, and net income of $1.38 a share, better than Wall Street expectations. Ebay shares opened trading Thursday up about 3% at $70.05 (EBAY). Iannone said Goldin Auctions, which eBay bought a year ago, added 0.3% to the volume growth in the quarter, assuming neutral currency impacts, with the sports memorabilia specialist expected to add 0.2% to sales growth in the current quarter. Both are notable given the company's overall growth picture. The company also said a partnership with PSA, the card-grading service owned by billionaires Steve Cohen and Dan Sundheim with sports card collector Nat Turner, has been a strong contributor to trading card sales since integrating with the eBay platform in the latter half of 2024. PSA has sold 500,000 cards through its eBay storefront since the third quarter, when PSA allowed consignment of cards on eBay. Services to streamline listing, reselling and directing cards to PSA for grading also helped business, the executive said. Iannone sounded a positive note over the potential impact of tariffs, at least on the collectibles segment, given trading cards are largely an internal U.S. market and tend to be less reactive to spending pullbacks by consumers compared to purchases of new items. For the current quarter, management said they expect net revenue to come in around break even, between a decline of 1% to a rise of 2% assuming neutral foreign exchange (the dollar has been weakening against most other currencies, however). 'Tariffs and other trade policy changes have created significant uncertainty for our sellers and buyers,' eBay chief financial officer Stephen Priest said in prepared remarks on the earnings call. 'Quarter-to-date, we have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at U.S. customs in the near future.' Best of Most Expensive Sports Memorabilia and Collectibles in History The 100 Most Valuable Sports Teams in the World NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
eBay tops Q1 2025 expectations and projects FX-neutral growth
American e-commerce company eBay has exceeded expectations across key financial metrics in the first quarter (Q1) of fiscal 2025 (FY25), with revenue up 1% on an as-reported basis. "FX-neutral" refers to the practice of presenting or calculating financial data using a constant or consistent foreign exchange rate between periods, even if the actual exchange rate has fluctuated. This method allows for a clearer comparison of performance. Net revenue stood at $2.59bn in the quarter compared with $2.56bn reported in the corresponding quarter of the previous fiscal year. The company's gross merchandise volume (GMV) also saw a modest rise to $18.8bn, marking a 1% year-on-year growth. Generally accepted accounting principles (GAAP) net income from continuing operations rose to $505m in Q1 FY25, up from $439m in the first quarter of fiscal 2024. This translates to an earnings per share boost of 25% to $1.06, compared to $0.85 in the same quarter of the previous year. However, eBay's GAAP operating margin experienced a slight contraction, settling at 23.8% for the first quarter of 2025, down from 24.7% during the same period of 2024. eBay chief executive officer Jamie Iannone stated: "eBay's first quarter results were ahead of expectations, as we delivered our fourth consecutive quarter of positive GMV growth. Our focus categories and geo-specific investments are driving momentum in the business, and we continue to innovate – leveraging Al to make our marketplace more efficient and intuitive for customers." During the earnings call, Iannone said: 'While our business is not immune to increased costs and friction associated with tariffs, our dynamic global supply and demand is an advantage in this environment. 'Our extensive selection of pre-loved and non-new and seasoned goods across a variety of categories can also help mitigate the pressure on consumers' discretionary budgets during periods of rising costs.' eBay chief financial officer (CFO) Steve Priest stated: 'To account for a variety of scenarios in the remainder of the quarter, we are providing wider than usual guidance ranges for Q2.' In the second quarter of the fiscal year, eBay projects revenue to fall between $2.59bn and $2.66bn and anticipates GMV to range between $18.6bn and $19.1bn. The company also announced an upcoming change in its executive team with Priest set to depart. Peggy Alford will step into the CFO from 12 May 2025. Priest's advisory tenure will contineu until 31 July. Alford will initially join eBay in an advisory capacity on 5 May before her official appointment as CFO. Furthermore, eBay is restructuring its leadership framework to enhance collaboration across various functions aiming for sustained growth in the evolving digital and AI-driven environment. This reorganisation involves merging product and market teams into a cohesive structure to improve agility and customer focus within the company. Additionally, eBay is consolidating its Engineering division to achieve increased operational speed and scale. The newly amalgamated Global Markets and Product division will be led by Jordan Sweetnam as chief commercial officer, while Mazen Rawashdeh will oversee the consolidated engineering department as chief technology officer. "We're making these changes from a position of strength. Our leadership evolution is about moving with greater speed, deepening collaboration across teams, and continuing to build the capabilities we need for the future. We believe these changes will drive long-term growth and deliver greater impact for our buyers and sellers," Jamie Iannone stated. "eBay tops Q1 2025 expectations and projects FX-neutral growth" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
30-04-2025
- Business
- Yahoo
eBay's (NASDAQ:EBAY) Q1 Sales Top Estimates, Quarterly Revenue Guidance Slightly Exceeds Expectations
Online marketplace eBay (NASDAQ:EBAY) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 1.1% year on year to $2.59 billion. Guidance for next quarter's revenue was better than expected at $2.63 billion at the midpoint, 0.9% above analysts' estimates. Its non-GAAP profit of $1.38 per share was 3.2% above analysts' consensus estimates. Is now the time to buy eBay? Find out in our full research report. Revenue: $2.59 billion vs analyst estimates of $2.55 billion (1.1% year-on-year growth, 1.6% beat) Adjusted EPS: $1.38 vs analyst estimates of $1.34 (3.2% beat) Adjusted EBITDA: $831 million vs analyst estimates of $822.1 million (32.1% margin, 1.1% beat) Revenue Guidance for Q2 CY2025 is $2.63 billion at the midpoint, above analyst estimates of $2.6 billion Adjusted EPS guidance for Q2 CY2025 is $1.28 at the midpoint, below analyst estimates of $1.28 Operating Margin: 23.8%, in line with the same quarter last year Free Cash Flow Margin: 24.9%, up from 21.7% in the previous quarter Active Buyers: 134 million, up 2 million year on year Market Capitalization: $31.32 billion "eBay's first quarter results were ahead of expectations, as we delivered our fourth consecutive quarter of positive GMV growth," said Jamie Iannone, Chief Executive Officer at eBay. Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world's largest online marketplaces. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, eBay struggled to consistently increase demand as its $10.31 billion of sales for the trailing 12 months was close to its revenue three years ago. This was below our standards and is a tough starting point for our analysis. This quarter, eBay reported modest year-on-year revenue growth of 1.1% but beat Wall Street's estimates by 1.6%. Company management is currently guiding for a 2.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. As an online marketplace, eBay generates revenue growth by increasing both the number of users on its platform and the average order size in dollars. eBay struggled with new customer acquisition over the last two years as its active buyers were flat at 134 million. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If eBay wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. Luckily, eBay added 2 million active buyers in Q1, leading to 1.5% year-on-year growth. The quarterly print was higher than its two-year result, suggesting its new initiatives are accelerating buyer growth. Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the company earns in transaction fees from each buyer. ARPB also gives us unique insights into a user's average order size and eBay's take rate, or "cut", on each order. eBay's ARPB growth has been mediocre over the last two years, averaging 3.2%. This raises questions about its platform's health when paired with its flat active buyers. If eBay wants to grow its buyers, it must either develop new features or lower its monetization of existing ones. This quarter, eBay's ARPB clocked in at $19.29. It was flat year on year, worse than the change in its active buyers. It was encouraging to see eBay beat analysts' revenue expectations this quarter. We were also glad its revenue guidance for next quarter slightly exceeded Wall Street's estimates. On the other hand, its number of active buyers was in line and its EPS guidance for next quarter fell slightly short of Wall Street's estimates. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The areas below expectations seem to be driving the move, and the stock traded down 1.4% to $67.20 immediately after reporting. So do we think eBay is an attractive buy at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
