eBay beat earnings and revenue estimates last quarter as gross merchandise volume surged.
Earnings per share were up 21% year-over-year to US$1.66, above the Zacks consensus estimate of $1.58. Revenue increased 19% to $3.10 billion, surpassing estimates by 2%.
"eBay's first quarter results marked a strong start to the year," said CEO Jamie Iannone. ”We accelerated GMV growth and delivered performance ahead of expectations.”
“Our Focus Categories, C2C [consumer-to-consumer] and recommerce strategic priorities are driving broad-based momentum, and strengthening our position as the marketplace of choice for enthusiasts.”
Gross merchandise volume grew 18% to $22.20 billion. Volumes in the United States were up 27% to $11.50 billion, while international merchandise volume increased 10% to $10.69 billion.
Advertising revenue represented 2.6% of gross merchandise volume and generated $581 million in total revenue during the quarter. First-party advertising products delivered $555 million in revenue, a 33% increase.
Income from operations was $611 million, unchanged from one year ago. Operating expenses rose from $1.28 billion to $1.68 billion, with sales and marketing, product development, and general and administrative expenses all climbing.
eBay’s second quarter outlook includes revenue of $2.97-3.03 billion, with gross merchandise volume of $21.3-21.7 billion and earnings per share of $1.46-1.51.
In February, eBay agreed to purchase consumer-to-consumer e-commerce app Depop from Etsy for $1.2 billion in cash. eBay expects the transaction to close by the end of 2026’s third quarter, it said.
Shares in eBay (NASDAQ: EBAY) closed 3.4% higher at $103.79, but fell 2.9% after-hours. Its market capitalisation is $46.50 billion.
