For the third quarter, eBay sales and revenue topped a Wall Street estimate as it launched new initiatives in consignment services and refurbished appliances as well as product repairs.
An analyst consensus estimate published by Yahoo Finance called for earnings of 94 cents per adjusted diluted share and revenues of $2.36 billion.
Revenue of $2.5 billion gained 5% on an as-reported basis and on a foreign exchange rate-neutral basis. Income from operations was $455 million versus $568 million in the quarter a year before, while adjusted income from operations was $658 million versus $690 million.
Gross merchandise volume of $18 billion was up 2% on an as-reported basis and roughly flat on an FX-neutral basis. eBay’s first-party advertising products, primarily driven by Promoted Listings, delivered $345 million of Q3 revenue, up 39% on an as-reported basis and up 36% on an FX-neutral basis. The company’s total advertising offerings generated $366 million in Q3 revenue, representing roughly 2% of GMV.
Some highlights of the quarter include:
- eBay introduced a new consignment service, which gives users direct access to expert sellers who will list and sell luxury items for them.
- The company launched the first phase of its magical listing experience to all mobile app users in the United States, United Kingdom and Germany, enabling sellers to use generative AI to populate item descriptions instantly.
- eBay and self-professed Air Fryer King Nathan Anthony opened the U.K.’s first air fryer restaurant in Shoreditch, offering a 12-plate tasting menu of dishes cooked using only refurbished appliances from eBay to highlight the value and quality of refused kitchen technology.
- eBay France launched a repair platform to help customers extend the lifespans of their household appliances, gardening equipment, tools and high-tech products. The service includes diagnostics, repair tutorials and access to experts via chatbot and video assistance.
“We delivered another quarter of solid results and have accelerated the pace of innovation across eBay,” said Jamie Iannone, eBay CEO, in announcing the financial results. “The strategic investments in our marketplace and the team’s strong execution are driving increased customer satisfaction, especially in focus categories. In the face of macroeconomic uncertainty, we continue to make meaningful progress against our ambitious vision to reinvent the future of e-commerce for enthusiasts.
Steve Priest, eBay CFO, added, “In Q3, we met or exceeded expectations across all of our key financial metrics. Our strong balance sheet and operational rigor enable us to adapt to the evolving changes in this dynamic macro environment. We will continue to be prudent with cost efficiencies, saving to invest for the future while remaining good stewards of capital for our shareholders. I’m proud of our teams for laying the groundwork for long-term, sustainable growth.”
