We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
eBay Inc. (EBAY - Free Report) reported first-quarter 2024 non-GAAP earnings of $1.25 per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line was up 13% year over year.
Net revenues of $2.56 billion surpassed the Zacks Consensus Estimate of $2.53 billion. The figure increased 2% from the year-ago quarter on a reported and FX-neutral basis.
Strengthening momentum across advertising offerings of EBAY was a tailwind.
eBay’s first-party advertising products generated revenues of $370 million, up 30% on a reported basis and 28% on an FX-neutral basis from the prior-year quarter.
Total advertising offerings yielded $384 million in revenues, which grew 20% year over year on a FX-neutral basis.
EBAY has gained 17.6% on a year-to-date basis, outperforming the industry’s growth of 8%.
However, the weakness in third-party advertising products, which generated $14 million in revenues in the reported quarter, was a negative. The figure moved down 55% year over year on a FX-neutral basis.
The weakening momentum among active buyers was concerning. EBAY witnessed a year-over-year decline of 1% in its active buyer base, which stood at 132 million at the end of the first quarter. The figure was in line with the consensus mark.
The active buyer count stood at 131 million, excluding contributions from GittiGidiyor and TCGplayer acquisitions.
Nevertheless, the growing gross merchandise volume (GMV) contributed well.
EBAY’s total GMV of $18.62 billion in the reported quarter exhibited year-over-year growth of 1% on a reported basis and it was flat on a FX-neutral basis.
The reported GMV surpassed the Zacks Consensus Estimate of $18.41 billion.
The total GMV is categorized into two parts. U.S. GMV totaled $8.97 billion, accounting for 48.2% of the total GMV. The figure was flat year over year. International GMV was $9.65 billion, accounting for 51.8% of the total GMV. The same grew 3% on a year-over-year basis.
Operating Details
In the first quarter, eBay’s gross margin was 72.6%, which expanded by 50 basis points (bps) year over year.
Operating expenses of $1.2 billion rose 2.1% year over year. As a percentage of net revenues, the figure contracted 200 bps from the year-ago quarter to 47.9%.
The non-GAAP operating margin was 30.3% in the first quarter, expanding 70 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash equivalents and short-term investments were $3.9 billion, down from $4.5 billion as of Dec 31, 2023.
The long-term debt was $6.17 billion at the end of the first quarter, down from $6.97 billion at the end of the fourth quarter.
EBAY generated $615 million in cash from operating activities in the first quarter, up from $123 million in the previous quarter.
The company’s free cash flow was $472 million in the reported quarter.
eBay repurchased $499 million worth of shares and paid out dividends of $139 million in the reported quarter.
Guidance
For second-quarter 2024, eBay expects revenues of $2.49-$2.54 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-1%. On a spot-rate basis, the same is expected between (2)% and 0%. The Zacks Consensus Estimate for revenues is pegged at $2.56 billion.
The non-GAAP operating margin for second-quarter 2024 is expected between 26.9% and 27.6%.
GMV for the second quarter is likely to be $17.8-$18.2 billion.
Non-GAAP earnings per share are anticipated between $1.10 and $1.15. The Zacks Consensus Estimate for the same is pegged at $1.17.
Image: Bigstock
eBay (EBAY) Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
eBay Inc. (EBAY - Free Report) reported first-quarter 2024 non-GAAP earnings of $1.25 per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line was up 13% year over year.
Net revenues of $2.56 billion surpassed the Zacks Consensus Estimate of $2.53 billion. The figure increased 2% from the year-ago quarter on a reported and FX-neutral basis.
Strengthening momentum across advertising offerings of EBAY was a tailwind.
eBay’s first-party advertising products generated revenues of $370 million, up 30% on a reported basis and 28% on an FX-neutral basis from the prior-year quarter.
Total advertising offerings yielded $384 million in revenues, which grew 20% year over year on a FX-neutral basis.
EBAY has gained 17.6% on a year-to-date basis, outperforming the industry’s growth of 8%.
However, the weakness in third-party advertising products, which generated $14 million in revenues in the reported quarter, was a negative. The figure moved down 55% year over year on a FX-neutral basis.
The weakening momentum among active buyers was concerning. EBAY witnessed a year-over-year decline of 1% in its active buyer base, which stood at 132 million at the end of the first quarter. The figure was in line with the consensus mark.
The active buyer count stood at 131 million, excluding contributions from GittiGidiyor and TCGplayer acquisitions.
Nevertheless, the growing gross merchandise volume (GMV) contributed well.
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
GMV Details
EBAY’s total GMV of $18.62 billion in the reported quarter exhibited year-over-year growth of 1% on a reported basis and it was flat on a FX-neutral basis.
The reported GMV surpassed the Zacks Consensus Estimate of $18.41 billion.
The total GMV is categorized into two parts. U.S. GMV totaled $8.97 billion, accounting for 48.2% of the total GMV. The figure was flat year over year. International GMV was $9.65 billion, accounting for 51.8% of the total GMV. The same grew 3% on a year-over-year basis.
Operating Details
In the first quarter, eBay’s gross margin was 72.6%, which expanded by 50 basis points (bps) year over year.
Operating expenses of $1.2 billion rose 2.1% year over year. As a percentage of net revenues, the figure contracted 200 bps from the year-ago quarter to 47.9%.
The non-GAAP operating margin was 30.3% in the first quarter, expanding 70 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash equivalents and short-term investments were $3.9 billion, down from $4.5 billion as of Dec 31, 2023.
The long-term debt was $6.17 billion at the end of the first quarter, down from $6.97 billion at the end of the fourth quarter.
EBAY generated $615 million in cash from operating activities in the first quarter, up from $123 million in the previous quarter.
The company’s free cash flow was $472 million in the reported quarter.
eBay repurchased $499 million worth of shares and paid out dividends of $139 million in the reported quarter.
Guidance
For second-quarter 2024, eBay expects revenues of $2.49-$2.54 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-1%. On a spot-rate basis, the same is expected between (2)% and 0%. The Zacks Consensus Estimate for revenues is pegged at $2.56 billion.
The non-GAAP operating margin for second-quarter 2024 is expected between 26.9% and 27.6%.
GMV for the second quarter is likely to be $17.8-$18.2 billion.
Non-GAAP earnings per share are anticipated between $1.10 and $1.15. The Zacks Consensus Estimate for the same is pegged at $1.17.
Zacks Rank & Other Stocks to Consider
Currently, eBay carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the retail-wholesale sector are The Gap (GPS - Free Report) , DICK'S Sporting Goods (DKS - Free Report) and Target (TGT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Gap has lost 3.9% in the year-to-date period. The long-term earnings growth rate for GPS is estimated at 12%.
DICK'S Sporting Goods shares have gained 41.2% in the year-to-date period. DKS’s long-term earnings growth rate is projected at 35.5%.
Target has gained 11.5% in the year-to-date period. The long-term earnings growth rate for TGT is anticipated at 11.36%.