Revenue
Earnings
eBay has guided for GAAP earnings of $0.82-0.87 per share and adjusted earnings of $1.15-1.20 per share for Q3 2024. Analysts are predicting EPS of $1.18. This compares to adjusted EPS of $1.03 reported in Q3 2023. In Q2 2024, adjusted EPS increased 15% YoY to $1.18.
Points to note
eBay expects gross merchandise volume (GMV) for the third quarter to range between $17.8-18.2 billion, which represents YoY FX-neutral growth of between negative 1% and positive 1%. Last quarter, GMV inched up 1% to $18.4 billion. Focus category GMV saw growth, driven by momentum in Parts & Accessories, collectibles, refurbished, and luxury goods.
Against a tough macroeconomic backdrop, there has been a rise in demand for refurbished and pre-owned goods, which has proved beneficial for eBay. The company’s efforts in providing authentication services for collectibles and luxury items, and its investments in improving the buying and selling experience on its platform are anticipated to yield gains.
eBay’s strategy of investing in specific geographies is paying off. Its initiatives have helped improve growth in markets like Germany and the UK. The company is also seeing momentum in advertising, with a 12% growth in first-party advertising recorded in Q2. Its investments in its advertising solutions as well as its efforts to boost its payment capabilities to make transactions seamless are expected to drive benefits.
In Q2, eBay’s adjusted operating margin improved by one point YoY to 27.9%, helped by operational efficiencies. The company has forecast its adjusted operating margin for the third quarter to range between 26.8-27.5%, representing a YoY expansion of 40-110 basis points.