eBay is reporting a better than expected result in its Q2 update, despite losing two percent of its Active Customer base.
eBay’s second-quarter has reported results ‘better than expected’, with revenue increasing to USD2.7 billion, up by 14 percent on an as-reported basis. In contrast, its GMV was $22.1 billion, down seven percent on an as-reported basis and down 11 per cent on an FX-Neutral basis.
eBay’s GAAP net income from continuing operations was $295 million, or $0.43 per diluted share. Its non-GAAP net income was $675 million, or $0.99 per diluted share.
Jamie Iannone, eBay’s CEO, explained that he is ‘pleased’ with the results. “In Q2, on an apples-to-apples basis, all key business metrics met or exceeded expectations and revenue growth was driven by the acceleration in our payments migration and growth in advertising,” he said.
In June 2021, the retailer announced it would be selling 80.1 percent of its stake in eBay Korea, including G-Market IAC and G-9 to Emart. It plans to continue with a stake of 19.99 percent. This deal was expected to provide eBay with about $3 billion in cash proceeds.
“During the quarter, we hit several important milestones in our ongoing transformation, including the transition of eBay’s Classifieds business – a deal that has already delivered exceptional shareholder value – and the announcement of the sale of our Korean business. We are simplifying our portfolio and growing our core while delivering significant shareholder value.”
eBay reported a small YoY decline (two percent) in its Annual Active Customers, resulting in a total of 159 million global buyers. This is well below the estimated 180 million given by analysts. By contrast, its Annual Active Seller base increased by five percent, now reaching 19 million total global sellers.
This decline comes as the pandemic-driven e-commerce growth starts to slow, Iannone explained. However, its results are still showing signs of ongoing growth, albeit not to the rate it was when the pandemic was first announced.
“We remain relentlessly focused on accelerating our product innovation by harnessing the power of next-gen technology and creating a more seamless experience for sellers,” Iannone shared. “We are delivering innovative category experiences for buyers and quickly evolving in our pursuit to be the best global marketplace to sell and buy.”
In the result call with analysts, Steve Priest, eBay’s CFO, explained that eBay would not be sharing its full-year guidance due partly to the uncertainty of the pandemic.
As for its future endeavours, eBay is planning to reduce its ownership of Norwegian classifieds company, Adevinta to 33 percent. The retailer has entered an agreement to sell approximately 135 million shares in its Adevinta stock to Permira for more than $2.4 billion.
eBay’s shares have remained somewhat rocky today as a result, dipping 2.4 per cent, then ultimately lifting back 10.5 percent to USD68.02 a share.
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