How Did eBay Perform In Q1?

by Trefis Team
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eBay (NASDAQ:EBAY) reported its Q1 results on April 23. The company beat consensus expectations on total revenue ($2.64 billion, +2% y-o-y) and earnings ($608 million, +11% y-o-y).  Despite the decline in GMV, the company’s management was positive on the user base growth and believes that if its active buyers continue to trend up, financial metrics will follow. We have updated our price estimate for the company to $39 per share, which is about in line with the current market price.

What Were The Highlights From eBay’s Q1? 

  • Active buyers grew to 180 million (+4% y-o-y), while total gross merchandise volume declined to $22.6 billion (-4% y-o-y).
  • Marketplace transaction revenues grew to $1.9 billion (+5% y-o-y), of which 62% came from international. Meanwhile, StubHub transaction revenues declined to $223 million (+3% y-o-y), of which 6% came from international. Total transaction revenues of $2.1 billion were up 4% y-o-y, of which 56% was international.
  • Marketing revenues from marketplaces declined to $277 million (-11% y-o-y), while marketing revenues from classifieds grew to $256 million (+4% y-o-y). Overall marketing revenues were down 4% annually.
  • Marketplace GMV declined to $21.6 billion (-4% y-o-y), while StubHub GMV declined to $1 billion (-3% y-o-y).
  • The company generated $550 million (+11% y-o-y) of operating cash flow from continuing operations and $368 million (+9% y-o-y) of free cash flow during the quarter.
  • eBay returned a total of $1.6 billion to shareholders ($125 million as the company’s first ever dividend and $1.5 billion through repurchase of 42 million shares at an average price of $35.9), with around $5.7 billion in repurchase authorization remaining.
  • For Q2, management expects GAAP revenue of $2.64 – $ 2.69 billion (+ y-o-y) and for the full year $10.83 – 10.93 billion (+ y-o-y). The company noted that the strategic review of assets announced during March is still underway

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