eBay reports flat Q3, forecasts weak outlook for Q4

For its third quarter, eBay Inc. delivered revenues of 2.6 billion dollars, flat on an as-reported basis and increase of 2 percent on a foreign exchange (FX) neutral basis. The company said in a statement that gross merchandise volume (GMV) of 21.7 billion dollars, was down 4 percent on an reported basis and 2 percent on a FX-neutral basis. During the quarter, eBay delivered GAAP net income from continuing operations of 310 million dollars or 37 cents per diluted share and non-GAAP net income of 563 million dollars or 67 cents per diluted share.

“We performed in line with expectations in Q3 while improving the Marketplace experience, creating better customer outcomes, and maintaining momentum in advertising and payments,” said Scott Schenkel, interim Chief Executive Officer of eBay Inc.

eBay reveals weak outlook for Q4

In the third quarter, eBay grew active buyers by 4 percent across its platforms, for a total of 183 million global active buyers. Underlying total eBay performance, the Marketplace platforms delivered 2.1 billion dollars of revenue and 20.5 billion dollars of GMV. Marketplace revenue was down 1 percent on reported basis and was up 1 percent on a FX-Neutral basis, and GMV was down 5 percent on reported basis and 2 percent on a FX-Neutral basis. StubHub, the company added, drove revenue of 306 million dollars, up 5 percent on both reported and FX-Neutral basis, and GMV of 1.2 billion dollars, flat on both reported and FX-Neutral basis. Classifieds platforms delivered revenue of 265 million dollars, up 4 percent on reported and up 8 percent on a FX-Neutral basis.

For the fourth quarter, the company expects net revenue between 2.77 billion dollars and 2.82 billion dollars, organic FX-neutral growth of negative 1 percent to positive 1 percent, with GAAP earnings per diluted share from continuing operations in the range of 55 cents to 60 cents and non-GAAP earnings per diluted share from continuing operations in the range of 73 cents and 76 cents.

For the full year, the company expects net revenue between 10.75 billion dollars and 10.80 billion dollars, organic FX-neutral growth of 2 percent to 3 percent, with GAAP earnings per diluted share from continuing operations in the range of 1.97 dollars to 2.02 dollars and non-GAAP earnings per diluted share from continuing operations in the range of 2.75 dollars and 2.78 dollars.

eBay’s board of directors has declared a cash dividend of 14 cents per share of the company’s common stock, payable on December 20, 2019 to shareholders of record as of December 2, 2019.

Picture:eBay newsroom