The second quarter saw eBay advance sales and earnings, beating Wall Street estimates with help from AI initiatives.
Net income from continuing operations was $369 million, or 79 cents per diluted share, versus $226 million, or 45 cents per diluted share, in the year-before quarter, the company maintained. Adjusted for one-time events, net income from continuing operations was $643 million, or $1.37 per diluted share, versus $602 million, or $1.18 per diluted share, in the year-previous period.
The online marketplace beat a Zacks Investment Research analyst consensus estimate on earnings, which was for $1.30, and revenues, which was for $2.66 billion.
Revenue was $2.73 billion, up 6% on an as-reported basis and up 4% on an foreign exchange-neutral basis versus the year-prior quarter, the company reported. Gross merchandise volume was $19.5 billion, up 6% on an as-reported basis and up 4% on an FX-neutral basis year over year.
Income from operations was $484 million versus $549 million in the year-earlier quarter, while adjusted operating income was $775 million versus $720 million.
Business highlights for the quarter include, eBay noted:
- Announcement of an AI shopping agent that delivers real-time, personalized product recommendations and expert guidance based on user shopping preferences.
- Unveiling of a generative AI video tool for U.S. sellers that transforms listing images into short-form videos for easy sharing on social platforms such as YouTube and TikTok to expand seller reach.
- Working to establish the bipartisan Recommerce Caucus in the United States Congress, a step toward advancing circular economy policy and unlocking long-term growth for small businesses and entrepreneurs.
For the third quarter, eBay expects revenue of $2.69 billion to $2.74 billion, up 3% to 5% on an FX-neutral basis, diluted earnings per share of 97 cents to $1.02 and adjusted earnings per share of $1.29 to $1.34.
Jamie Iannone, eBay CEO, said. “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.”
