eBay Inc. (NASDAQ: EBAY) exceeded revenue and earnings estimates for the third quarter of 2019. The consensus estimate on earnings was $0.64 per share on estimated revenues of $2.64 billion. Shares were down 2.5% in aftermarket hours on Wednesday.
Total revenue of $2.65 billion was flat on a reported basis and up 2% on an FX-neutral basis versus the same period last year.
GAAP net income was $310 million, or $0.37 per share, compared to $721 million, or $0.73 per share, last year. Adjusted EPS from continuing operations was $0.67.
Gross merchandise volume (GMV) was $21.7 billion, down 4% on a reported basis and down 2% on an FX-neutral basis.
During the quarter, active buyers increased 4% to 183 million versus the prior-year period. Marketplace revenue fell 1% on a reported basis to $2.1 billion. StubHub revenues rose 5% on a reported basis to $306 million. Classifieds revenue rose 4% on a reported basis to $265 million.
eBay processed $500 million in payments during Q3. In September, the service reached 9.4% of volume in the US and successfully launched in Germany. Revenues from advertising increased 119% on a reported basis to $103 million.
The company completed an operating review and developed a multi-year plan for operating efficiency. These efficiencies, combined with 2019 margin expansion and reinvestment, are expected to drive 3 points of additional operating margin by 2022.
eBay is still reviewing the value of StubHub and Classifieds in its portfolio to determine the best alternative and anticipates sharing an update on the StubHub business before the next earnings release.
eBay declared a cash dividend of $0.14 per common share, payable on December 20, 2019 to shareholders of record as of December 2, 2019.
For the fourth quarter of 2019, eBay expects net revenue to be $2.77 billion to $2.82 billion. GAAP EPS from continuing operations is expected to be $0.55-0.60 and adjusted EPS from continuing operations is expected to be $0.73-0.76.
For the full year of 2019, the company expects net revenue of $10.75 billion to $10.80 billion. GAAP EPS from continuing operations is expected to be $1.97-2.02 and adjusted EPS from continuing operations is expected to be $2.75-2.78.
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