eBay Posts Positive Q3 Performance

• Revenue of $2.6 billion, up 3% on an as-reported and FX-Neutral basis
• Gross Merchandise Volume of $18.3 billion, up 2% on an as-reported basis and up 1% on an FX-Neutral basis
• GAAP and Non-GAAP earnings per diluted share of $1.29 and $1.19, respectively
• GAAP and Non-GAAP operating margins of 23.1% and 27.2%, respectively
• Returned $881 million to stockholders in Q3, including $750 million of share repurchases and $131 million paid in cash dividends

eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter ended September 30, 2024.

"We achieved another quarter of positive GMV growth and delivered strong results across our key metrics," said Jamie Iannone, Chief Executive Officer at eBay. "Our Focus Categories and geo-specific investments are driving momentum in the business, and we are leveraging the power of Al to create magical innovations for our customers."

"eBay delivered strong top and bottom line results in Q3," said Steve Priest, Chief Financial Officer at eBay. "Solid execution within our strategic initiatives drove continued GMV growth amid a dynamic macro environment, and we are continuing to invest for the long-term while generating significant earnings growth and capital returns for shareholders."

Third Quarter Financial Highlights

• Revenue was $2.6 billion, up 3% on an as-reported and foreign exchange (FX) neutral basis.
  
  
• Gross Merchandise Volume (GMV) was $18.3 billion, up 2% on an as-reported basis and up 1% on an FX-Neutral basis.
  
  
• GAAP net income from continuing operations was $636 million, or $1.29 per diluted share.
  
  
• Non-GAAP net income from continuing operations was $588 million, or $1.19 per diluted share.
  
  
• GAAP and Non-GAAP operating margins were 23.1% and 27.2%, respectively.
  
  
• Generated $755 million of operating cash flow and $646 million of free cash flow.
  
  
• Returned $881 million to stockholders, including $750 million of share repurchases and $131 million paid in cash dividends.

Business Highlights

• eBay launched its redesigned global advertising platform, unifying and simplifying the experience and empowering sellers with tools to better achieve their advertising goals.
  
  
• eBay's first-party advertising products delivered $396 million of revenue in the third quarter, up 15% on an as-reported basis and up 14% on an FX-Neutral basis. The company's total advertising offerings generated $408 million of revenue in the third quarter, representing 2.2% of GMV.
  
  
• The company expanded its eBay Seller Capital program with two new seller financing options. In partnership with Liberis, eBay launched Business Cash Advance and Flexible Cash Advance, making it easier and faster for eligible eBay sellers in the U.S. to access capital and accelerate their growth.
  
  
• eBay released its magical AI-powered bulk listing tool to Sports Trading Cards sellers in the U.S., making it faster and easier to create detailed, eye-catching listings and get more inventory in front of buyers.
  
  
• eBay released the second generation of its proprietary LiLiuM series of Large Language Models (LLMs) to its engineers. Developed in-house using the company's high-performance supercomputer, these models have outperformed public benchmarks in eBay-specific tasks like description generation, title creation, aspect extraction, and pricing predictions.
  
  
• eBay consignment was expanded to include handbags in the U.K., making it easier for even more consumers to participate in circular fashion.
  
  
• The company held its first-ever Pre-Loved Fashion Week, in partnership with the Council of Fashion Designers of America (CFDA) and the British Fashion Council (BFC). As part of the event, eBay's "Endless Runway" shows were streamed via eBay Live, allowing shoppers to buy pre-loved fashion straight off the runway.
  
  
• eBay was named the official collectibles partner of The New York Times' The Athletic, bringing exclusive content to a broader audience and empowering them to discover and purchase unique collectible items on eBay.
  
  
• The company announced the appointment of Samantha Wellington as Chief Legal Officer, General Counsel and Secretary.
  
  
• eBay announced the appointment of William (Bill) D. Nash, CEO of CarMax, to its Board of Directors.

Impact

• The eBay Foundation announced its 2024 Global Give grantees, awarding a total of nearly $3 million to 31 grantees across the globe who are addressing and removing barriers to entrepreneurship for people who identify with historically excluded groups.
  
  
• Through eBay for Charity, buyers and sellers contributed more than $49 million globally in Q3, up 21% year-over-year.
  
  
• eBay was recognized in the Fortune Change the World 2024™ List for being a leader in recommerce and empowering the circular economy.

Third Quarter 2024 Financial Highlights (presented in millions, except per share data and percentages)

Other Selected Financial and Operational Results

• Operating margin – GAAP operating margin increased to 23.1% for the third quarter of 2024, compared to 18.2% for the same period last year. Non-GAAP operating margin increased to 27.2% for the third quarter of 2024, compared to 26.4% for the same period last year.
  
  
• Taxes – The GAAP effective tax rate for continuing operations for the third quarter of 2024 was 20.2%, compared to 21.4% for the third quarter of 2023. The non-GAAP effective tax rate for continuing operations for the third quarter of 2024 was 16.5%(1).
  
  
• Cash flow – The company generated $755 million of operating cash flow and $646 million of free cash flow during the third quarter of 2024.
  
  
• Capital returns – The company repurchased $750 million of its common stock, or approximately 13 million shares, in the third quarter of 2024. The company's total repurchase authorization remaining as of September 30, 2024 was approximately $1.2 billion. The company also paid cash dividends of $131 million during the third quarter of 2024.
  
  
• Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled $5.8 billion as of September 30, 2024.

Business Outlook

eBay is providing the following guidance for the fourth quarter and full year 2024.

Dividend Declaration

• eBay's Board of Directors has declared a cash dividend of $0.27 per share of the company's common stock. The dividend is payable on December 13, 2024 to stockholders of record as of November 29, 2024.

(1) We use a non-GAAP effective tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.

Source : eBay, Inc.

Image : Valeriya Zankovych / shutterstock / 1251361531

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