Nitheesh NH
2Q19 Results
eBay reported net revenues of $2.69 billion in the second quarter, ended June 30, 2019, up 1.8% year over year and beating the consensus estimate of $2.68 billion. Total GMV was $22.6 billion, down 4% as reported and flat on a currency-neutral basis. Gross margin decreased 83 basis points to 76.6% and operating margin increased 550 basis points to 20.9%. Non-GAAP diluted EPS increased 28.3% to $0.68, beating the consensus estimate of $0.62.
In the quarter, the number of active global buyers across eBay’s platforms grew 4% year over year to a total of 182 million.
Breakdown of revenue segments:
- Marketplace platforms recorded revenue of $2.2 billion, up 1% as reported and up 3% on a currency-neutral basis. The platforms delivered GMV of $21.5 billion, down 5% as reported and 1% on a currency-neutral basis.
- StubHub platforms recorded revenue of $264 million, up 7% both as reported and on a currency-neutral basis. GMV was $1.1 billion, up 5% as reported and up 6% on a currency-neutral basis.
- Classifieds platforms recorded revenue of $271 million, up 5% as reported and up 12% on a currency-neutral basis.
- The new managed payment system launched in 2018 has over 6,000 sellers opting into the program. The payment system achieved more than $270 million of GMV during the second quarter, an increase of 24% quarter-over-quarter.
- In the second quarter, over 940,000 active sellers used advertising to promote over 250 million listings, which contributed over $89 million of advertising revenue in the quarter, up almost 130% year over year on a currency-neutral basis.
- The company introduced new features to increase buyer conversion, such as Buy Again, Trending in Your Interests and an expanded Offers to Buyers.
- The company reached an agreement with India’s Paytm Mall to bring eBay’s global inventory onto one of the largest marketplaces in India.
- eBay reached an agreement to sell its flash sale German business brands4friends.
- Net revenue of $2.61-2.66 billion in 3Q19, growth of 1-3% on a currency-neutral basis, and non-GAAP diluted EPS of $0.62-0.65.
- Net revenue of $10.75-10.83 billion in FY19, representing growth of 2-3% on a currency-neutral basis, and non-GAAP diluted EPS of $2.70-2.75.