E-commerce Giant eBay Posts Solid Q2 Results Despite Economic Uncertainty: Details

Benzinga08-01

eBay Inc. (NASDAQ:EBAY) reported second-quarter FY24 revenue growth of 1% Y/Y on an as-reported basis and up 2% Y/Y on an FX-Neutral basis to $2.57 billion, beating the consensus of $2.53 billion.

Gross Merchandise Volume reached $18.4 billion, marking a 1% Y/Y increase both on an as-reported and FX-neutral basis.

Adjusted operating margin stood at 27.9% versus 26.9% a year ago. Adjusted EPS of $1.18 beat the consensus of $1.13.

The company generated $367 million in operating cash flow and $278 million in free cash flow in the quarter.

As of June-end, the company’s cash, cash equivalents, and non-equity investments totaled $6.3 billion.

eBay returned $1.1 billion to stockholders, comprising $1.0 billion in share repurchases and $135 million in cash dividends in the quarter.

Jamie Iannone, Chief Executive Officer, said, “The continued momentum in Focus Categories contributed to our increase in GMV, while new AI capabilities are driving innovation across the platform and transforming the experience for eBay customers around the world.”

Dividend: eBay’s Board of Directors has declared a $0.27 per share cash dividend, payable on September 13 to stockholders of record as of August 30.

Outlook: eBay expects third-quarter revenue of $2.50 billion-$2.56 billion (up 1% to 3% FX-Neutral Y/Y), compared to the consensus of $2.54 billion, and adjusted EPS of $1.15-$1.20 compared to the consensus of $1.13.

“We achieved positive year-over-year GMV growth, driven by our execution against strategic initiatives, despite an uneven discretionary demand environment in our major markets,” said Steve Priest, Chief Financial Officer at eBay.

Investors can gain exposure to the stock via ProShares Online Retail ETF (NYSE:ONLN) and Global X E-commerce ETF (NASDAQ:EBIZ).

Also Read: eBay Likely To Report Higher Q2 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Price Action: EBAY shares traded lower by 0.38% at $55.40 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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