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eBay Q3 2024 Earnings Report

eBay Q3 2024 Earnings Report

A sign is posted in front of eBay's headquarters in San Jose, California.

Justin Sullivan | Getty Images

Shares of eBay fell about 9% in extended trading on Wednesday after the online marketplace issued fourth-quarter forecasts that fell short of Wall Street expectations.

This is how the company developed in the third quarter:

  • Earnings: $1.19 per share versus LSEG's expected $1.18 per share
  • Revenue: $2.58 billion versus LSEG's expected $2.55 billion

For the current quarter, eBay forecast revenue between $2.53 billion and $2.59 billion, which would represent a decline of 1% to an increase of 1% year-over-year. The forecast fell short of the average analyst estimate for fourth-quarter revenue of $2.65 billion, according to StreetAccount.

The company also said it expects fourth-quarter adjusted earnings per share of $1.17 to $1.22. The high end of the range corresponds to consensus estimates of $1.22 per share.

eBay is facing increasing competition in e-commerce from competitors such as: Amazon, Walmart And Etsyand low-cost newcomers Temu and Shein, both of which have ties to China. To keep buyers and sellers returning to its site, the company has focused on so-called “focus categories” such as collectible sneakers, pre-owned luxury goods and auto parts. It also announced artificial intelligence tools that provide personalized recommendations for buyers and streamline seller listing creation.

eBay CEO Jamie Iannone said in an interview following the earnings report that the weak guidance was due to a number of “unique factors.” He cited the frequency of hurricanes earlier in the quarter and buyer distraction ahead of the U.S. presidential election in November. He also pointed to the shorter holiday shopping season, which includes five fewer days between Thanksgiving and Christmas this year compared to last year.

A recent Deloitte survey found that unsettled weather and election distractions are expected to be top priorities for holiday shoppers this year. Amazon In its most recent earnings report, the company also cited similar factors for its weaker-than-expected guidance. Amazon reports third-quarter results on Thursday.

Iannone said eBay has resonated with buyers despite the difficult macroeconomic environment, noting that consumers can “purchase used and refurbished products and find great deals, which tends to be even more beneficial in difficult times.”

“If you look at the trajectory and the momentum that we're on, we're exactly where we expected,” Iannone said. “We feel really good.”

Steve Priest, eBay's chief financial officer, said the company has “robustly executed” its strategic initiatives, resulting in continued gross merchandise volume growth “in a dynamic macroeconomic environment.”

According to eBay, GMV, or the dollar value of items sold on eBay's marketplace, increased 2% year-over-year to $18.3 billion. That beat analysts' forecast of $18.1 billion, according to StreetAccount estimates.

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