One-time charges aside, eBay managed to beat a Wall Street earning estimate in the second quarter, even if sales and earnings slipped.
Net loss from continuing operations was $536 million, or 96 cents per diluted share, versus net income of $294 million, or 43 cents per diluted share, in the year-before period. Adjusted for one-time changes, net income was $554 million, or 99 cents per diluted share, versus $675 million, or 99 cents per diluted share, in the year-previous quarter.
In the quarter, eBay topped a MarketBeat analyst consensus estimate of 90 cents per adjusted diluted share.
The net loss arose primarily from a change in fair value of the company’s equity investments, the company asserted.
Revenue was $2.42 billion, down 9% on an as-reported basis and down 6% on a foreign exchange neutral basis, from the year-earlier period, according to eBay. Operating income was $525 million versus $732 million in the year-prior period.
Gross merchandise volume was $18.5 billion, down 18% on an as-reported basis and down 14% on a foreign-exchange neutral basis.
Among recent business initiatives, eBay expanded its eBay Refurbished program across multiple condition grades. Hundreds of thousands of items will be added to the program this year, enabling eBay to meet consumer needs at every price point, without sacrificing quality and trust, the company maintained. The expansion included the launch of eBay Refurbished in Canada, giving buyers access to like-new products ranging from moderate wear to pristine condition, all backed by a one- or two-year warranty.
In addition, the company piloted eBay Live beta, a dedicated shopping platform through which consumers can browse and buy products in a live, interactive environment, eBay noted. New beta technology combines entertainment with instant purchasing.
“Once again I am pleased to report another strong quarter,” said Jamie Iannone, eBay CEO, in announcing the financial results. “Our team delivered better than expected financial results across the board while continuing to make significant progress on our long-term initiatives. Our focus category strategy is working, and payments and advertising are driving further growth. eBay is in a stronger position today than it was when we entered the pandemic. Despite rising inflation and an uncertain macro environment, we remain on track to deliver on our 2022 commitments.”
