eBay Posts Strong Start To 2024

• Revenue of $2.6 billion, up 2% on an as-reported basis and up 2% on an FX-Neutral basis
• Gross Merchandise Volume of $18.6 billion, up 1% on an as-reported basis and roughly flat on an FX-Neutral basis
• GAAP and Non-GAAP earnings per diluted share of $0.85 and $1.25, respectively
• GAAP and Non-GAAP operating margin of 24.7% and 30.3%, respectively
• Returned $638 million to shareholders in Q1, including $499 million of share repurchases and $139 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 first quarter ended March 31, 2024.

"eBay's Q1 results marked a strong start to 2024 as we continue to make progress toward our goal of sustainable GMV growth," said Jamie Iannone, Chief Executive Officer at eBay. "We believe our accelerating pace of innovation is fundamentally changing the selling and buying experience on eBay, generating better outcomes for customers, increasing productivity across our organization, and ultimately driving more value for shareholders."

"Our Q1 results highlight the resilience of our marketplace and business model amid persistent challenges in the global economy," said Steve Priest, Chief Financial Officer at eBay.  "We exceeded our outlook across our key financial metrics and made significant progress against our long-term strategic objectives."

First Quarter Financial Highlights

• Revenue was $2.6 billion, up 2% on an as-reported basis and up 2% on a foreign exchange (FX) neutral basis.
• Gross Merchandise Volume (GMV) was $18.6 billion, up 1% on an as-reported basis and roughly flat on an FX-Neutral basis.
• GAAP net income from continuing operations was $439 million, or $0.85 per diluted share.
• Non-GAAP net income from continuing operations was $648 million, or $1.25 per diluted share.
• GAAP and Non-GAAP operating margin was 24.7% and 30.3%, respectively.
• Generated $615 million of operating cash flow and $472 million of free cash flow.
• Returned $638 million to shareholders, including $499 million of share repurchases and $139 million paid in cash dividends.

Business Highlights

• eBay's first-party advertising products delivered $370 million of revenue in the first quarter, up 30% on an as-reported basis and up 28% on an FX-Neutral basis.
• The company's total advertising offerings generated $384 million of revenue in the first quarter, representing 2.1% of GMV.
• In Q1, eBay Motors redesigned the self-service experience for its MyFitment toolkit, simplifying how sellers onboard, view and publish fitment data for Parts & Accessories listings. On the buying side, the new Motors DIY Guides offer expert content for common maintenance jobs alongside eBay listings for the specific parts, tools and materials needed to complete them.
• eBay expanded its consignment service to include luxury apparel, giving casual sellers the opportunity to leverage eBay experts to list and sell their luxury apparel on their behalf.
• During the quarter, eBay and Balenciaga collaborated to advocate for more sustainability within the fashion industry. At Paris Fashion Week in March, Balenciaga debuted its Winter 24 Collection, a line of co-branded streetwear which sourced pre-loved items from eBay.
• To celebrate the world-renowned "Pokémon Day," eBay held a Pokémon "Catch 151" Auction event featuring 151 ultra-rare cards and collectibles at accessible price points. The event highlighted the vast array of Pokémon inventory available on eBay and gave enthusiasts an opportunity to elevate their collections with iconic pieces.
• To further reduce friction for sellers, eBay introduced a simplified mobile listing experience for Sports Trading Cards in the U.S. that pre-fills relevant item aspects, offers simplified shipping options, and provides intelligent pricing recommendations to drive measurable improvements in listing time, listing completion and sold items per customer.
• The company continued to enhance eBay Live in Q1, expanding to new categories like comics and sports memorabilia and revamping the auctions experience for more seamless bidding. eBay also improved event discoverability by enabling live event viewing on desktop and surfacing personalized live event recommendations on the homepage.
• In February, eBay announced the appointment of Zane Rowe, CFO at Workday, to its Board of Directors as well as the company's Audit Committee.

Impact

• During the quarter, eBay U.K. and eBay Australia announced their respective Circular Fashion Fund finalists and winner, demonstrating the company's continued commitment to sustainable fashion.
• eBay Inc. contributed $9 million to the eBay Foundation in Q1 in support of nonprofit organizations advancing inclusive entrepreneurship.
• eBay for Charity contributed more than $46 million globally in Q1, up 18% year-over-year.

First 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 24.7% for the first quarter of 2024, compared to 22.2% for the same period last year. Non-GAAP operating margin increased to 30.3% for the first quarter of 2024, compared to 29.6% for the same period last year.
• Taxes – The GAAP effective tax rate for continuing operations for the first quarter of 2024 was 18.1%, compared to 22.1% for the first quarter of 2023. The non-GAAP effective tax rate for continuing operations for the first quarter of 2024 was 16.5%(1).
• Cash flow – The company generated $615 million of operating cash flow and $472 million of free cash flow during the first quarter of 2024.
• Capital returns – The company repurchased $499 million of its common stock, or approximately 10 million shares, in the first quarter of 2024. The company's total repurchase authorization remaining as of March 31, 2024 was approximately $2.9 billion. The company also paid cash dividends of $139 million during the first quarter of 2024.
• Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled $4.9 billion as of March 31, 2024.

Business Outlook

eBay is providing the following guidance for the second quarter 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 June 14, 2024 to stockholders of record as of May 31, 2024.

Source : eBay, Inc

Image : George Sheldon / Shutterstock.com / 769619905 

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