- Prachi Singh |
eBay Inc., for its second quarter ended June 30, 2018 delivered revenue of 2.6 billion dollars, up 9 percent on reported basis and 6 percent on FX neutral basis, which the company said, was driven by gross merchandise volume (GMV) of 23.6 billion dollars, up 10 percent on reported basis and 7 percent on an FX-neutral basis. During the quarter, eBay delivered GAAP net income from continuing operations of 638 million dollars or 0.64 dollar per diluted share and non-GAAP net income from continuing operations of 533 million dollars or 0.53 dollar per diluted share.
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"In Q2 we continued to execute our strategy, making improvements to the core eBay experience. At the same time, we pursued significant opportunities in advertising and payments," said Devin Wenig, President and CEO of eBay Inc. in a statement, adding, "As we look ahead to the second half of 2018, we expect acceleration in our core business and continued strong growth in earnings."
Review of eBay’s second quarter results
In the second quarter, eBay grew active buyers by 4 percent across its platforms, for a total of 175 million global active buyers. Underlying total eBay Inc. performance, the marketplace platforms delivered 2.1 billion dollars of revenue and 22.6 billion dollars of GMV. Marketplace revenue growth was 9 percent on reported basis and 6 percent on an FX-neutral basis, and GMV was up 11 percent on reported basis and 7 percent on an FX-neutral basis.
StubHub revenue of 246 million dollars, was up 4 percent on an a reported basis and 3 percent on an FX-Neutral basis, and GMV of 1.1 billion dollars, rose 5 percent on both reported and FX-neutral basis. Classifieds platforms delivered revenue of 259 million dollars, up 18 percent on reported and 10 percent on an FX-neutral basis.
eBay to end strategic relationship with India’s Flipkart
The company also announced its intent to sell its holdings in India’s Flipkart, which will represent gross proceeds of approximately 1.1 billion dollars. Following the close of the transaction, eBay will end its current strategic relationship with Flipkart. The company plans to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity. In Q2, eBay also completed its acquisition of Giosis' Japan business, including the Qoo10.jp platform, which expands its footprint in Japan.
The company expects net revenue in the third quarter to be between 2.64 billion dollars and 2.69 billion dollars, representing organic FX-neutral growth of 5 percent – 7 percent, with GAAP earnings per diluted share from continuing operations in the range of 0.37 dollar to 0.41 dollar and non-GAAP earnings per diluted share from continuing operations in the range of 0.54 dollar to 0.56 dollar.
For the full year, the company now expects net revenue between 10.75 billion dollars and 10.85 billion dollars, representing organic FX-neutral growth of 6 percent to 7 percent, with GAAP earnings per diluted share from continuing operations in the range of 1.91 dollars to 2.01 dollars and non-GAAP earnings per diluted share from continuing operations in the range of 2.28 dollars to 2.32 dollars.
Picture:eBay press centre