eBay’s Q1 revenue misses expectations, lowers Q2 forecast
Despite adding immersive solutions and growing active buyers across its platforms, eBay’s first quarter results fell short of analyst estimates.
For the quarter ended March 31, revenue was $2.58 billion, missing the analyst estimates of $2.59 billion. However, revenue rose 12% from a year ago, marking its best growth in more than four years. Earnings per share was $0.53, which was in line with industry analysts.
Net income fell to $407 million from $1.04 billion last year, when it booked a $695 million tax gain.
eBay grew active buyers by 4% across its platforms, for a total of 171 million global active buyers. The marketplace platforms delivered $2.1 billion of revenue, and $22.5 billion of gross merchandise volume (GMV).
"In Q1, we drove good growth and made further progress with our multi-year effort to transform our customer experience and sharpen the eBay brand," said Devin Wenig, president and CEO of eBay.
Among these customer experience efforts include a new augmented reality shipping tool to help customers find the right box to ship an item. eBay's development teams are also using artificial intelligence (AI) to sharpen the overall search experience, leveraging data and AI to improve recall and relevance on the eBay platform.
Looking ahead, the company is hedging its bets. For the second quarter, the company expects net revenue between $2.64 billion and $2.68 billion, with earnings in the range of $0.50 and $0.52. Analysts were expecting revenue to be $2.69 billion.
For the full year, the company expects net revenue between $10.9 billion and $11.1 billion, with earnings in the range of $1.65 and $1.75.
For the quarter ended March 31, revenue was $2.58 billion, missing the analyst estimates of $2.59 billion. However, revenue rose 12% from a year ago, marking its best growth in more than four years. Earnings per share was $0.53, which was in line with industry analysts.
Net income fell to $407 million from $1.04 billion last year, when it booked a $695 million tax gain.
eBay grew active buyers by 4% across its platforms, for a total of 171 million global active buyers. The marketplace platforms delivered $2.1 billion of revenue, and $22.5 billion of gross merchandise volume (GMV).
"In Q1, we drove good growth and made further progress with our multi-year effort to transform our customer experience and sharpen the eBay brand," said Devin Wenig, president and CEO of eBay.
Among these customer experience efforts include a new augmented reality shipping tool to help customers find the right box to ship an item. eBay's development teams are also using artificial intelligence (AI) to sharpen the overall search experience, leveraging data and AI to improve recall and relevance on the eBay platform.
Looking ahead, the company is hedging its bets. For the second quarter, the company expects net revenue between $2.64 billion and $2.68 billion, with earnings in the range of $0.50 and $0.52. Analysts were expecting revenue to be $2.69 billion.
For the full year, the company expects net revenue between $10.9 billion and $11.1 billion, with earnings in the range of $1.65 and $1.75.