eBay Inc., the global commerce leader has reported financial results for its second quarter ended June 30, 2024. The volume of stock ("Gross Merchandise Volume") sold globally on the eBay platform was $18.4bn up 1% YoY. Ebay's revenue was $2.6billion, also up 1%.
Second Quarter Financial Highlights
- Revenue was $2.6 billion, up 1% on an as-reported basis and up 2% on a foreign exchange (FX) neutral basis.
- Gross Merchandise Volume (GMV) was $18.4 billion, up 1% on an as-reported and FX-Neutral basis.
- GAAP net income from continuing operations was $226 million, or $0.45 per diluted share.
- Non-GAAP net income from continuing operations was $602 million, or $1.18 per diluted share.
- GAAP and Non-GAAP operating margin was 21.3% and 27.9%, respectively.
- Generated $367 million of operating cash flow and $278 million of free cash flow
- Returned $1.1 billion to stockholders, including $1.0 billion of share repurchases and $135 million paid in cash dividends.
Business Highlights:
- eBay enabled Venmo as an additional payment method during the quarter. Known for its popularity among Gen Z and Millennials, Venmo gives eBay buyers in the U.S. even more choice and flexibility during the checkout experience.
- The company launched a number of innovative product features to simplify and enhance the buying and selling experience for customers.
- In the U.S. and U.K., eBay introduced Shop the look, a generative-AI powered discovery feature for fashion buyers. The company also launched its AI-powered background enhancement tool to 100% of iOS and Android users in the U.S., U.K. and Germany, enabling even more sellers to apply a variety of backgrounds to their listing images.
- The company introduced improved selling and buying experiences for pre-owned apparel in the U.K. For sellers, these changes included a new selling flow that makes it considerably easier to list on eBay, with image guidance, simpler item aspect collection, and a streamlined shipping module. For buyers, we introduced new Generative AI-powered features, like Shop the look and Explore, which offer more inspirational shopping experiences for fashion enthusiasts.
Comment:
- “eBay’s strong Q2 results mark another step toward achieving sustainable, long-term growth,” said Jamie Iannone, ChiefExecutive Officer at eBay. “The continued momentum in Focus Categories contributed to our increase in GMV, while new AIcapabilities are driving innovation across the platform and transforming the experience for eBay customers around the world.”
- “Q2 was another strong quarter for eBay as we exceeded expectations across our key financial metrics,” said Steve Priest, ChiefFinancial Officer at eBay. “We achieved positive year-over-year GMV growth, driven by our execution against strategic initiatives,despite an uneven discretionary demand environment in our major markets.”
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