EBAY Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

eBay Inc. EBAY reported first-quarter 2025 non-GAAP earnings of $1.38 per share, which beat the Zacks Consensus Estimate by 2.99%. The bottom line increased 10% year over year.

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Net revenues of $2.58 billion beat the Zacks Consensus Estimate by 1.49%. The figure increased 1% from the year-ago quarter on a reported basis and 2% on an FX-neutral basis.

eBay’s first-party advertising products generated revenues of $418 million, up 13% on an as-reported basis and 14% on an FX-neutral basis.

Total advertising offerings yielded $442 million in revenues, representing 2.4% of gross merchandise volume (GMV).

EBAY has gained 10% on a year-to-date basis, outperforming the Internet - Commerce industry’s decline of 6.4%.

EBAY’s active buyer base, which was pinned at 134 million at the end of the first quarter, increased 1% year over year, missing the consensus mark by 0.10%.

eBay Inc. Price, Consensus and EPS Surprise

eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote

GMV Details for EBAY

EBAY’s total GMV of $18.8 billion in the reported quarter exhibited year-over-year growth of 1% on a reported and 2% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $18.5 billion.

The total GMV is categorized into two parts. U.S. GMV totaled $9.06 billion, accounting for 48.3% of the total GMV. The figure rose 1% year over year. International GMV was $9.68 billion, accounting for 51.7% of the total GMV. The figure implies no year-over-year change.

EBAY’s Operating Details

Operating expenses of $1.24 billion grew 1.71% year over year. As a percentage of net revenues, the figure contracted 30 basis points (bps) from the year-ago quarter to 48.2%.

The non-GAAP operating margin was 29.8% in the first quarter, contracting 50 bps year over year.

EBAY’s Balance Sheet & Cash Flow

As of March 31, 2025, cash equivalents and short-term investments were $4.79 billion, down from $5.89 billion as of Dec. 31, 2024.

Long-term debt was $5.75 billion at the end of the first quarter of 2025, which remained unchanged from the figure at the end of the fourth quarter of 2024.

EBAY generated $787 million in cash from operating activities in the first quarter, up from $677 million in the previous quarter.

The company’s free cash flow was $644 million in the reported quarter.

eBay repurchased $625 million worth of shares and paid out dividends of $134 million in the reported quarter. The company had $2.7 billion remaining under its buyback authorization as of March 31, 2025.

Guidance

For second-quarter 2025, eBay expects revenues in the range of $2.59-$2.66 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-2%. The Zacks Consensus Estimate for revenues is pegged at $2.59 billion.

The non-GAAP operating margin for the second quarter of 2025 is expected to be between 27% and 27.8%.

GMV for the second quarter is likely to be in the range of $18.6-$19.1 billion.

Non-GAAP earnings per share are anticipated between $1.24 and $1.31. The Zacks Consensus Estimate for the same is pegged at $1.26.

Zacks Rank and Stocks to Consider

Currently, EBAY carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader sector are Carvana CVNA, Alibaba BABA and Canada Goose GOOS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Carvana have gained 20.1% year to date. CVNA is set to report first-quarter 2025 results on May 7.

Shares of BABA have risen 40.9% year to date. It is expected to report first-quarter 2025 results soon.

Shares of GOOS have lost 16.7% year to date. It is expected to report fourth-quarter fiscal 2025 results soon.

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This article originally published on Zacks Investment Research (zacks.com).

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