StubHub is eBay’s (EBAY) fastest-growing business segment and remains one of the key drivers behind the company’s turnaround story. StubHub is the largest ticket marketplace in the United States (SPY) and serves as a platform where buyers and sellers meet and trade thousands of tickets for live events.
The segment generated $1.1 billion in gross merchandise volume in 2Q16, reflecting a rise of 35% YoY (year-over-year). The segment’s revenues are also witnessing an upward trend and rose by about 40% YoY to $225 million in 2Q16. The company’s efforts to enhance the user experience, including ticket recommendations and new pricing displays, are helping the segment post strong growth.
Given the segment’s strong performance and the company’s efforts to expand its global footprint, StubHub has the potential to be the next PayPal (PYPL), which will contribute meaningfully to the company’s revenue growth in the future.
Other segments are complementing growth
The company’s revamped platform is now showing signs of acceleration, with a new rise in revenue and GMV (gross merchandising volume). Importantly, new product reviews on the platform are increasing at an amazing rate, and US users, who land on the platform through the SEO channel, are converting at the high rate of ~10%.
Meanwhile, eBay’s Classifieds segment remains strong, having witnessed double-digit revenue growth for the past six consecutive quarters.
Continue to the next part for eBay’s outlook.