Shulou(Shulou.com)11/24 Report--

On the morning of November 3, Beijing time, eBay today released the company's third quarter 2022 results. According to the report, eBay's third-quarter net revenue was $2.38 billion, down 5% from $2.501 billion in the same period last year, and 2% year-on-year excluding exchange rate changes. The net loss from continuing operations was $70 million, compared with $283 million from continuing operations in the same period last year. EBay's adjusted net profit from continuing operations, not in accordance with US GAAP, was $552 million in the third quarter, down 7 per cent from $591 million in the same period last year.

EBay's third-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations and beat expectations for fiscal year 2022, sending its shares up nearly 8 per cent in after-hours trading.

Main achievements:

For the quarter ended September 30, eBay posted a net loss of $70 million from continuing operations, compared with a net profit of $283 million from continuing operations in the same period last year, and a diluted loss of $0.13 per share from continuing operations, compared with diluted earnings per share of $0.43 from continuing operations in the same period last year.

Excluding certain one-time items (not in accordance with GAAP), eBay's adjusted net income from continuing operations was $552 million in the third quarter, down 7% from $591 million in the same period last year. Diluted earnings per share from continuing operations were $1.00, up 11% from $0.90 in the same period last year, exceeding analysts' expectations. On average, 24 analysts had expected eBay's adjusted earnings per share to reach 93 cents a share in the third quarter, according to data compiled by Yahoo Finance.

EBay's third-quarter net revenue was $2.38 billion, down 5 per cent from $2.501 billion in the same period last year, and 2 per cent year-on-year, excluding currency changes, which also beat analysts' expectations. On average, 24 analysts expect eBay's third-quarter revenue to reach $2.32 billion, according to data compiled by Yahoo Finance.

By business type, eBay's net trading revenue in the third quarter was $2.259 billion, down 4% from $2.35 billion in the same period last year, of which 52% came from the international market, compared with 54% in the same period last year Marketing services and other revenue was $121 million, down 20% from $151 million in the same period last year, of which 21% came from the international market, compared with 24% in the same period last year.

EBay's total merchandise trading volume (GMV) was $17.715 billion in the third quarter, down 11 per cent from $19.925 billion in the same period last year, and 5 per cent year-on-year, excluding exchange rate changes.

By region, eBay's total merchandise transaction volume from the US was $8.699 billion in the third quarter, down 7 per cent from $9.312 billion in the same period last year, while total merchandise transaction volume from the international market was $9.016 billion, down 15 per cent from $10.613 billion in the same period last year.

EBay's third-quarter net revenue cost was $647 million, compared with $678 million in the same period last year. EBay's third-quarter gross profit was $1.733 billion, compared with $1.823 billion in the same period last year.

EBay's total operating expenses were $1.165 billion in the third quarter, compared with $1.161 billion in the same period last year. Of this total, sales and marketing expenses were $538 million, compared with $496 million in the same period last year; product expenses were $345 million, compared with $334 million in the same period last year; general and administrative expenses were $212 million, compared with $219 million in the same period last year; the provision for transaction losses was $69 million, compared with $112 million in the same period last year. Amortization expenses for acquired intangible assets were $1 million, compared with zero for the same period last year.

EBay's third-quarter operating profit was $568 million, compared with $662 million in the same period last year. Excluding certain one-time items (not in accordance with GAAP), eBay's adjusted operating profit was $690 million in the third quarter, compared with $792 million in the same period last year.

EBay's operating margin was 23.9% in the third quarter, compared with 26.5% in the same period last year. Excluding some one-time items (not in accordance with GAAP), eBay's adjusted operating margin was 28.9% in the third quarter, compared with 31.7% in the same period last year.

Business indicators and other financial information:

The number of active buyers in the third quarter of eBay was 135 million, down 11 per cent from 152 million in the same period last year, while the number of active buyers excluding GittiGidiyor was 133 million, down 10 per cent from 148 million in the same period last year.

The effective tax rate for eBay's continuing operations in the third quarter was-29.9%, compared with 34.7% in the same period last year. Excluding some one-time items (not in accordance with GAAP), the effective tax rate for eBay's continuing operations in the third quarter was 16.5%, compared with 17.8% in the same period last year.

EBay generated operating cash flow of $735 million and free cash flow of $633 million from ongoing operating activities in the third quarter.

In the third quarter, eBay bought back nearly 7 million common shares, with a total value of about $301 million. As of September 30, 2022, eBay's approved remaining redeemable shares were worth more than $3.1 billion. In addition, eBay paid out a cash dividend of $120 million in the third quarter.

As of September 30, 2022, eBay held a total of $4.8 billion in cash, cash equivalents and non-equity portfolios.

The Board of Directors of eBay announced that it would pay a cash dividend of $0.22 per common share to shareholders of record as of December 1, 2022 on December 16, 2022.

Performance outlook:

Fourth quarter performance outlook:

EBay expects net revenue for the fourth quarter of fiscal 2022 to reach $2.42 billion to $2.5 billion, excluding exchange rate changes, down 1% to 4% from a year earlier, with an average of $2.46 billion below expectations; diluted earnings per share from continuing operations will reach $0.76 to $0.82 per share according to general accounting standards Without GAAP, diluted earnings per share from continuing operations will be between $1.03 and $1.09, and the average expected range ($1.06) is in line with analysts' expectations.

According to data compiled by Yahoo Finance, 22 analysts had expected eBay's fourth-quarter earnings per share to reach $1.06 per share, while 24 analysts had expected eBay's fourth-quarter revenue to reach $2.49 billion.

Full-year performance outlook:

EBay expects net revenue for fiscal year 2022 to reach $9.71 billion to $9.79 billion, excluding exchange rate changes, a year-on-year decline of 3% to 4%, with an average of $9.75 billion; diluted losses per share from continuing operations will reach $2.68 to $2.74 according to GAAP. Without GAAP, diluted earnings per share from continuing operations would be between $4.07 and $4.13, and the average expected range ($4.10) exceeded analysts' expectations.

According to data compiled by Yahoo Finance, 29 analysts had expected eBay's full-year earnings per share to reach $4.04 on average, while 29 analysts had expected eBay's fourth-quarter revenue to reach $9.72 billion.

Changes in stock prices:

EBay shares fell $1.75, or 4.40%, to close at $38.06 in regular Nasdaq trading. EBay shares surged $3.02, or 7.93 per cent, to $41.08 in after-hours trading as of 05:29 est on Wednesday (05:29 Beijing time on Thursday). In the past 52 weeks, the highest price for eBay is $77.00 and the lowest price is $35.92.

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