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

On the morning of July 27, Beijing time, eBay today released the company's second-quarter results for fiscal year 2023.

According to the report, eBay's second-quarter net revenue was $2.54 billion, up 5% from $2.422 billion in the same period last year, and 6% year-on-year, excluding exchange rate changes; net profit from continuing operations was $172 million, compared with a net loss of $536 million from continuing operations in the same period last year Diluted earnings per share from continuing operations were $0.32, compared with a diluted loss of $0.96 per share from continuing operations in the same period last year.

EBay's second-quarter revenue and adjusted earnings per share exceeded Wall Street analysts' expectations, and the outlook for third-quarter revenue also exceeded expectations. At the same time, however, eBay's outlook for third-quarter adjusted earnings per share fell short of analysts' expectations, sending its shares down nearly 5 per cent in after-hours trading.

Key results: for the quarter ended June 30, eBay posted a net profit of $172 million from continuing operations, compared with a net loss of $536 million from continuing operations in the same period last year, and diluted earnings per share of $0.32 from continuing operations, compared with a diluted loss of $0.96 per share from continuing operations in the same period last year.

Excluding certain one-time items (not in accordance with GAAP), eBay's adjusted net profit from continuing operations was $555 million in the second quarter, roughly flat from $554 million in the same period last year; adjusted diluted earnings per share from continuing operations were $1.03, up 5% from $0.99 in the same period last year, beating analysts' expectations. On average, 24 analysts expect eBay's adjusted earnings per share to reach $0.90 in the second quarter, according to data provided by Yahoo Finance.

EBay's second-quarter net revenue was $2.54 billion, up 5 per cent from $2.422 billion in the same period last year, and 6 per cent year-on-year, excluding currency changes, which also beat analysts' expectations. On average, 23 analysts expect eBay's second-quarter revenue to reach $2.27 billion, according to Yahoo Finance.

EBay's total merchandise trading volume (GMV) was $18.2 billion in the second quarter, down 2 per cent from $18.5 billion in the same period last year, or 1 per cent year-on-year, excluding exchange rate changes.

By region, eBay's total merchandise trading volume from the US was $8.702 billion in the second quarter, down 3 per cent from $8.982 billion in the same period last year, while total merchandise trading volume from the international market was $9.512 billion, down 1 per cent from $9.567 billion in the same period last year.

EBay's second-quarter net revenue cost was $718 million, compared with $663 million in the same period last year. EBay's second-quarter gross profit was $1.822 billion, compared with $1.759 billion in the same period last year.

EBay's total operating expenses were $1.304 billion in the second quarter, compared with $1.234 billion in the same period last year. Of this total, sales and marketing expenses were $566 million, compared with $566 million for the same period last year; product expenses were $392 million, compared with $344 million for the same period last year; general and administrative expenses were $251 million, compared with $237 million for the same period last year; the provision for transaction losses was $90 million, compared with $8600 for the same period last year. Amortization expenses for acquired intangible assets were $5 million, compared with $1 million for the same period last year.

EBay's second-quarter operating profit was $518 million, compared with $525 million in the same period last year. Excluding certain one-time items (not in accordance with GAAP), eBay's adjusted operating profit was $684 million in the second quarter, compared with $694 million in the same period last year.

EBay's operating margin was 20.4% in the second quarter, compared with 21.7% in the same period last year. Excluding some one-time items (not in accordance with GAAP), eBay's adjusted operating margin was 26.9% in the second quarter, compared with 28.7% in the same period last year.

Business indicators and other financial information:

The number of active buyers in eBay in the second quarter was 132 million, down 4 per cent from 138 million in the same period last year, while the number of active buyers excluding GittiGidiyor and TCGPlayer was 131 million, down 3 per cent from 135 million in the same period last year.

The effective tax rate for eBay's continuing operations in the second quarter was 39.7%, compared with 26.3% in the same period last year. Excluding certain one-time items (not in accordance with GAAP), the effective tax rate for eBay's continuing operations in the second quarter is 16.5%.

EBay generated operating cash flow of $605 million and free cash flow of $492 million from ongoing operating activities in the second quarter.

In the second quarter, eBay paid out a cash dividend worth $133 million. EBay bought back nearly 6 million common shares in the second quarter, for a total of about $250 million in share repurchases. As of June 30, 2023, the total amount of repurchases approved for the rest of eBay was approximately $2.3 billion.

As of June 30, 2023, the total value of cash and cash equivalents and non-equity portfolios held by eBay was $5.3 billion.

The Board of Directors of eBay announced that it will pay a cash dividend of $0.25 per common share to shareholders, which will be paid on September 15, 2023 to shareholders of record as of September 1, 2023.

Performance outlook: eBay expects net revenue in the third quarter of fiscal 2023 to reach between $2.46 billion and $2.52 billion, with a year-on-year growth rate of 2% to 4% excluding exchange rate changes. The average performance outlook is $2.49 billion, exceeding analysts' expectations; diluted earnings per share from continuing operations will reach between 67 and 72 U.S. dollars according to general accounting standards. Without GAAP, diluted earnings per share from continuing operations would be between $0.96 and $1.01, with an average of $0.985, falling short of analysts' expectations.

On average, 23 analysts expect eBay's third-quarter revenue to reach $2.23 billion, according to Yahoo Finance. According to Refinitiv, a provider of financial market data and infrastructure, analysts on average expect eBay to earn $1.02 per share in the third quarter.

Share price movements: eBay shares rose 49 cents, or 1.01%, to close at $48.80 in regular Nasdaq trading. EBay shares fell 4.82 per cent, or $2.35, to $46.45 in after-hours trading as of 06:41 EDT (06:41 Beijing time). In the past 52 weeks, the highest price for eBay is $52.23 and the lowest price is $35.92.

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