SAN JOSE, California – eBay Inc. (NASDAQ:), a global trading leader, reported solid performance in the second quarter of 2024, exceeding analyst expectations for both earnings per share (EPS) and revenue.
The company posted adjusted earnings per share of $1.18, which was $0.05 higher than analyst estimates of $1.13. Revenue for the quarter was reported at $2.6 billion, surpassing the consensus estimate of $2.53 billion. EBAY shares fell 1.28% after the announcement.
The company’s revenue saw a modest increase of 1% on a reported basis and 2% on an FX-neutral basis compared to the same quarter last year. Gross trading volume (GMV) also showed growth, up 1% on both a reported and FX-neutral basis. eBay’s GAAP and adjusted operating margins for the quarter were 21.3% and 27.9%, respectively.
eBay CEO Jamie Iannone attributed the strong quarter to the company’s focus on long-term sustainable growth, with momentum in focus categories contributing to the GMV increase. He also highlighted the role of new AI capabilities in driving innovation across the platform. Steve Priest, eBay’s CFO, highlighted the company’s financial discipline and strategic initiatives as key factors in achieving positive GMV growth despite an uneven demand environment.
Looking ahead, eBay provided guidance for the third quarter of 2024, predicting adjusted earnings per share of $1.15 to $1.20, above the analyst consensus of $1.13. The company also expects third-quarter revenue to be between $2.5 billion and $2.6 billion, which is halfway in line with the consensus estimate of $2.537 billion.
During the quarter, eBay returned $1.1 billion to shareholders, including $1.0 billion in share repurchases and $135 million paid in cash dividends. The company also completed a series of transactions with Collectors and enabled Venmo as an additional payment method, among other strategic steps to improve the customer experience.
eBay generated $367 million in operating cash flow and $278 million in free cash flow. The Company’s cash and cash equivalents and non-equity portfolio totaled $6.3 billion as of June 30, 2024.
The Company’s Board of Directors has declared a cash dividend of $0.27 per share of the Company’s common stock, payable on September 13, 2024, to stockholders of record on August 30, 2024.
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