eBay (EBAY) posted revenues of $2.64 billion, topping analysts’ expectations of $2.58 billion and the company’s guided range of $2.55 billion to $2.60 billion in the first quarter. Revenues grew 2.4% YoY and 4% YoY, excluding currency, driven by a 4% growth in active buyers. Total global active buyers reached 180 million.
Marketplace revenue and Classifieds revenue grew 3% YoY and 4% YoY, respectively. On the other hand, StubHub revenues were flat compared to the prior-year quarter. The company is in the process of reviewing its StubHub and eBay Classifieds businesses following pressure from activist investors including Starboard Value and Elliott Management, which are considering selling eBay’s non-core units to better compete with the likes of Amazon (AMZN) and to attract online shoppers.
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Gross merchandise volumes
eBay’s gross merchandise volumes (or GMV), which is the value of goods sold updated on the website at a specific time, declined 4.2% YoY to $22.6 billion and was down 1%, excluding currency. The company anticipates GMV to remain under pressure in the near term, as the company has reduced some marketing spending. However, the company is positive that GMV would benefit in the long run backed by the company’s efforts including new ad sales and easier-to-use payment processes to attract shoppers.
The company is focusing on its promoted listings program and payments business to make its platform simpler. eBay has added new payment methods like Alphabet’s (GOOGL) Google Pay to attract more users.
For the second quarter of 2019, eBay forecasts revenue in the range of $2.64 billion to $2.69 billion. For full-year 2019, the company has raised its outlook for revenues and predicts revenue in the range of $10.83 billion to $10.93 billion as compared to the previous expectation of $10.7 billion to $10.9 billion.