Source: Company reports

2Q16 RESULTS

eBay reported 2Q16 revenues of $2.2 billion, up 5.7% year over year and slightly above the consensus estimate. Gross merchandise volume (GMV) was $20.9 billion, up 4% year over year as reported and up 6% on a currency-neutral basis. eBay’s Marketplace platforms delivered GMV of $19.8 billion, and GMV growth accelerated to 3% year over year as reported and to 3% on a currency-neutral basis. Marketplace revenues were $1.7 billion, up 1% year over year as reported and up 3% on a currency-neutral basis. StubHub achieved a GMV of $1.1 billion, up 35% year over year, and revenues of $225 million, up 40%. Classifieds platforms generated revenues of $207 million, up 15%, driven by strength in the Automotive and Real Estate verticals in Germany and Canada. eBay received one billion live listings for the first time during the second quarter and announced agreements to acquire Expertmaker (which provides personalization and business optimization powered by artificial intelligence), SalesPredict (predictive analytics), Ticketbis (provides international expansion for StubHub) and Ticket Utils (enhanced tools for inventory management). Adjusted EPS was $0.43, as compared to $0.42 in the year-ago quarter, and beat the consensus estimate by a penny.

OUTLOOK

For 3Q16, the company expects revenues of $2.16–$2.19 billion, up 2.9%–4.3%, and slightly above the consensus estimate of $2.14 billion. This figure represents currency-neutral growth of 6%–7%. The company also guided for non-GAAP EPS of $0.42–$0.44, in line with the consensus estimate of $0.43, and GAAP EPS of $0.35–$0.37. eBay raised full-year guidance and now expects revenues of $8.85–$8.95 billion, up 3.0%–4.2%; this is up from prior guidance of $8.6–$8.8 billion and above the consensus estimate of $8.8 billion. The company also raised EPS guidance to non-GAAP EPS of $1.85–$1.90, as compared to $1.83 in 2015, with the midpoint of the range above the consensus estimate of $1.86. The EPS range provided at the end of 4Q15 was for non-GAAP EPS of $1.82–$1.87 and GAAP EPS of $1.60–$1.65.