eBay Inc., the parent firm of the eBay marketplace that also owns a variety of other companies including Gumtree and StubHub, has delivered its report on the second quarter of 2018 this evening and revealed that total eBay Inc. revenue in the three month period to the end of June was $2.6bn.
We’ll look at some of the detail below but the immediate reaction from the market has been mixed (although it can take some days to settle down to a consensus in any case). Whilst there are some positive points, growth in some areas, and a massive share buy-back stock will be seen as positive, the guidance given to investors for the year to come is considered a little shy by many analysts, it seems.
The eBay Inc. revenue total was $2.6 billion, up 9% on an as-reported basis and 6% on a foreign exchange (FX) neutral basis, primarily driven by gross merchandise volume (GMV) of $23.6 billion, up 10% on an as-reported basis and 7% on an FX-Neutral basis.
According to the press release, during the quarter, eBay delivered GAAP net income from continuing operations of $638 million, or $0.64 per diluted share and Non-GAAP net income from continuing operations of $533 million, or $0.53 per diluted share. The company generated $372 million of operating cash flow and $188 million of free cash flow from continuing operations while also repurchasing approximately $1.0 billion of its common stock in the quarter.
In Q2 we continued to execute our strategy, making improvements to the core eBay experience. At the same time, we pursued significant opportunities in advertising and payments. As we look ahead to the second half of 2018, we expect acceleration in our core business and continued strong growth in earnings.
– Devin Wenig, President and CEO of eBay Inc.
In the second quarter, eBay expanded its number of active buyers by 4% across all its various platforms to a total of 175 million global shoppers. Underlying total eBay Inc. performance, the Marketplace platforms delivered $2.1 billion of revenue and $22.6 billion of GMV. Marketplace revenue growth was 9% and GMV increased 11%. The eBay marketplace is still key to the overall health of the company, basically.
StubHub remains a bit of a star player though and delivered revenue of $246 million, up 4% on an as-reported basis and 3% on an FX-Neutral basis, and GMV of $1.1 billion, up 5% on both an as-reported and FX-Neutral basis. Classifieds platforms delivered revenue of $259 million, up 18%.
8 Responses
Poor results coupled with another 300 job losses!!
Share price down 5.7% this morning though could bounce back a little, stock now 3% less than a year ago!
I looked at the presentation info and does not look too good despite the spin and fluf they keep saying about futures etc, investers seem to be worried.
Q3 will be critical for ebay now, could we see some seller perks to increase sales and revenue?, i very much doubt it!.
as an analyst following eBay for many years, this Q was easy to see would be weak… I give the CEO another 6 mos to deliver on the promised acceleration in GMV or all teh many initiatives will have been wasted money.. sadly looks like a case of a good platform poorly managed and lacking a tech visionary to animate it and revive active buyer growth and deliver real underlying GMV growth
I am sure their profits will start to go back up when the 4% starts to kick in for poor return rates for item not as described, damaged during delivery etc.
Couple of weeks ago was told this would only be the case if you account was below standard due to cases being opened and closed in the buyers favour if you did not sort it out. But speaking to someone last night this is not the case and if you have a high number of returns for damages, not as described you will be charged an additional 4%
Yeah Ebay’s stock dropped over 20% about a week ago. They are running scared and implemented a pointless ” Best Offers ” button during last week. Smells of desperation
@Sam – If your looking for a fresh alternative marketplace in the UK, Buuy.co.uk has since reopened but only in app version at moment. They have zero fee’s. The desktop version should be coming soon.
Ecrater has some new features such as providing discount’s off items and providing coupons to potential buyers. I for one welcome the updates on Ecrater. It seems to be expanding now a mass exodus of Ebay sellers are jumping ship and selling elsewhere.