eBay posts Q2 earnings and revenue beat, stock dips

SAN JOSE, Calif. – eBay Inc. (NASDAQ:), a global commerce leader, reported a solid performance in the second quarter of 2024, surpassing analyst expectations for both earnings per share (EPS) and revenue.

The company posted an adjusted EPS of $1.18, which was $0.05 higher than the analyst estimate of $1.13. Revenue for the quarter was reported at $2.6 billion, exceeding the consensus estimate of $2.53 billion. EBAY shares were down 1.28% following the announcement.

The company’s revenue saw a modest increase of 1% on an as-reported basis and 2% on an FX-Neutral basis compared to the same quarter last year. Gross Merchandise Volume (GMV) also showed growth, with a 1% rise on both an as-reported and FX-Neutral basis. eBay’s GAAP and adjusted operating margins for the quarter were 21.3% and 27.9%, respectively.

eBay’s CEO, Jamie Iannone, attributed the strong quarter to the company’s focus on sustainable, long-term growth, with momentum in Focus Categories contributing to the GMV increase. He also highlighted the role of new AI capabilities in driving innovation across the platform. Steve Priest, eBay’s CFO, emphasized the company’s financial discipline and strategic initiatives as key factors in achieving positive GMV growth despite an uneven demand environment.

Looking ahead, eBay provided guidance for the third quarter of 2024, forecasting an adjusted EPS range of $1.15 to $1.20, which is above the analyst consensus of $1.13. The company also expects third-quarter revenue to be between $2.5 billion and $2.6 billion, which at the midpoint, is in line with the consensus estimate of $2.537 billion.

During the quarter, eBay returned $1.1 billion to stockholders, including $1.0 billion in share repurchases and $135 million paid in cash dividends. The company also completed a series of transactions with Collectors and enabled Venmo as an additional payment method, among other strategic moves to enhance customer experience.

eBay’s generated $367 million of operating cash flow and $278 million of free cash flow. The company’s cash and cash equivalents and non-equity investments portfolio totaled $6.3 billion as of June 30, 2024.

The company’s Board of Directors has declared a cash dividend of $0.27 per share of the company’s common stock, payable on September 13, 2024, to stockholders of record as of August 30, 2024.

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