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Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Apr 19 2017 16:42:40

eBay Grows Sales 5 Percent in First Quarter 2017

By: Ina Steiner
Sponsored Link
eBay's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2017 earnings, you can view the full release with tables on eBay's investor relations website.

eBay Inc. Reports First Quarter 2017 Results

Q1 Revenue of $2.2 billion; GMV of $20.9 billion.

- Gross Merchandise Volume of $20.9 billion
- Revenue of $2.2 billion
- GAAP and Non-GAAP EPS per diluted share of $0.94 and $0.49, respectively, on a continuing operations basis
- Repurchased $350 million of common stock

eBay Inc. (NASDAQ: EBAY), a global commerce leader, delivered gross merchandise volume (GMV) for the quarter ended March 31, 2017 of $20.9 billion, increasing 2% on an as-reported basis and 5% on a foreign exchange (FX) neutral basis. Revenue for the quarter was $2.2 billion, up 4% on an as-reported basis and 7% on an FX-Neutral basis.

During the quarter, eBay delivered GAAP net income from continuing operations of $1.0 billion, or $0.94 per diluted share, driven by a non-cash $695 million income tax benefit related to the continued realignment of its legal structure, primarily impacting its foreign Classifieds platforms. Non-GAAP net income from continuing operations was $538 million, or $0.49 per diluted share. During the quarter, the company generated $582 million of operating cash flow and $447 million of free cash flow from continuing operations. The company also repurchased $350 million of its common stock in the quarter.

"The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business," said Devin Wenig, President and CEO of eBay Inc. "We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages and market a sharpened eBay brand globally."

Underlying total eBay Inc. performance, the Marketplace platforms delivered $20.0 billion of GMV and $1.8 billion of revenue. Marketplace GMV was up 2% on an as-reported basis and 5% on an FX-Neutral basis, driven by growth of active buyers, continued expansion of new user experiences and brand advertising, which led to revenue growth of 2% on an as-reported basis and 5% on an FX-Neutral basis. StubHub drove GMV of $916 million, up 6%, and revenue of $210 million, up 18% on an as-reported basis and 19% on an FX-Neutral basis, aided by strength in international markets with the integration of the Ticketbis acquisition. Classifieds had another quarter of strong growth delivering revenue of $199 million, up 7% on an as-reported basis and 10% on an FX-Neutral basis with strength across its German platforms.

In the first quarter, eBay added two million active buyers across its platforms, for a total of 169 million global active buyers.  Marketplace launched several new consumer experiences built on the foundation of its structured data efforts, coupled with continued investment in brand advertising, including the launch of a billboard and radio campaign across the United States. The company also began the roll out of a new, personalized homepage and announced new services that will be available later this year, including a Guaranteed Delivery program on millions of eligible items that arrive in three days or less, and an authentication program to boost consumer confidence when purchasing high-end merchandise. During Q1, StubHub became the official ticket resale marketplace for the Los Angeles Angels and Toronto Blue Jays, offering pricing guidance for sellers and panoramic 360-degree virtual view-from-seats for buyers. Classifieds continued to enhance user experiences across its platforms, including launching a personalized homepage feed on Marktplaats.nl, as well as expanding its inventory integration with the eBay Marketplace platform across multiple regions.

eBay recently announced a strategic agreement with Flipkart. In exchange for an equity stake, eBay will make a $500 million cash investment in and sell its eBay.in business to Flipkart. The companies will also exclusively pursue cross-border trade opportunities together.

Other Selected Financial and Operational Results

Operating margin - GAAP operating margin decreased to 24.6% for the first quarter of 2017, compared to 28.7% for the same period last year. Non-GAAP operating margin decreased to 30.0% in the first quarter of 2017, compared to 33.4% for the same period last year.

Taxes - The GAAP effective tax rate for continuing operations for the first quarter of 2017 was (85.5)%, driven by a $695 million income tax benefit related to a legal structure realignment, primarily impacting its foreign Classifieds platforms, compared to 18.4% for the first quarter of 2016. The non-GAAP effective tax rate for continuing operations for the first quarter of 2017 was 18.7%, compared to 20.4% for the first quarter of 2016.

Cash flow - The company generated $582 million of operating cash flow from continuing operations and $447 million of free cash flow from continuing operations during the first quarter of 2017.

Stock repurchase program - The company repurchased approximately $350 million of its common stock, or 10 million shares, in the first quarter of 2017. The company's total repurchase authorization remaining as of March 31, 2017 was $986 million.

Cash and cash equivalents and non-equity investments - The company's cash and cash equivalents and non-equity investments portfolio totaled $11.2 billion as of March 31, 2017.

Business Outlook

Second quarter 2017 - The company expects net revenue between $2.28 billion and $2.32 billion, representing FX-Neutral growth of 5% - 7%, with non-GAAP earnings per diluted share from continuing operations in the range of $0.43 - $0.45 and GAAP earnings per diluted share from continuing operations in the range of $0.20 - $0.40.

Full year 2017 - The company expects net revenue between $9.3 billion and $9.5 billion, representing FX-Neutral growth of 6% - 8%, with non-GAAP earnings per diluted share from continuing operations in the range of $1.98 - $2.03 and GAAP earnings per diluted share from continuing operations in the range of $1.85 - $2.10.
Quarterly Conference Call and Webcast

eBay Inc. will host a conference call to discuss first quarter 2017 results at 2:00 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor, in addition to following press releases, SEC filings, public conference calls and webcasts.
Reading EcommerceBytes Blog: eBay Grows Sales 5 Percent in First Quarter 2017
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Readers Comments

Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: Ming the Merciless
       
Wed Apr 19 17:12:05 2017
Horse manure.

Ebay "grew" its paltry sales (1) because USPS raised their rates in January and greedy, desperate ebafia took an even bigger percentage (2) ebafia reduced ebay bucks in another desperation move (3) ebafia stole money from sellers by pushing "Promoted Listings" that weren't.

The rest if just Wall Street fluff.

Ming's Ebafia Law #1

Ebay lies. Always has. Always has.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: iheartjacksparrow
       
Wed Apr 19 18:30:46 2017
In a few days we'll get Amazon's first quarter financials and hear about how their sales grew at least four times the amount of eBay's.  
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: Eric Saeger This user has validated their user name.
       
Wed Apr 19 19:40:36 2017
Swear to God, I rushed to this site just to see what Ming would say. The guy just rules.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: The End
       
Wed Apr 19 19:51:12 2017
Ebay HAS NO SALES.
They have TAKE.
Ebay TOOK MORE.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: Frank Abagnale This user has validated their user name.
       
Wed Apr 19 21:00:55 2017
"Marketplace GMV was up 2%"

Just 2%????? With the increase in USPS shipping that means the Ebay marketplace is not growing.  
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: pace306 This user has validated their user name.
       
Wed Apr 19 21:22:59 2017
Ming is %100 correct.

Its everything he said plus the increase in fees.

Wall Street doesnt get that its all a  scam.

Its like "free listings". Sure they are free the first time - and the stuff doesnt sell, THEN you pay the 20 cents each next time it autorelists. Of course had the listings actually been shown OR the items not returned (which 1 million dollars says was NOT COUNTED in those numbers) .... they would have sold the first time 'round.

eBay wants successful sales, not successful sellers, PERIOD.

Anyone whos a seller knows theres no traffic unless you are listing your iPhone 6s for $50, which gets bought by some guy  in Bulgaria and then he returns a Moto flip phone in return.

Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: comments This user has validated their user name.
       
Wed Apr 19 22:15:02 2017
Catastrophic losses are coming. The fee increases have essentially devalued the merchandise of all TRS sellers combined with the new higher rates for big ticket items, it should put many sellers out of business.

The more fees are raised the more unique items sellers drop out and are only being replaced by amazon/walmart/samsclub/etc dropshippers. As ebay's most loyal customers become wise to this they will slowly fade away skipping the middleman. I know I did. After the last 10 ebay purchases of retails items came in amazon or walmart boxes I just check those places first. I am not just saying that either. Since most of those packages come with a receipt showing the actual buy price from the seller I am made a fool of every time I open the box. That is as bad an experience as I can have.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: toolguy
       
Wed Apr 19 22:55:32 2017
Good Job eBay!

At least we aren't going out of business

Some companies have negative growth like Sears, JCPenny, Macy's, Radio Shack, CVS etc. etc. etc.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: eXtinctBay This user has validated their user name.
       
Wed Apr 19 23:44:54 2017
@Tool

''Some companies have negative growth like Sears, JCPenny (sic), Macy's, Radio Shack, CVS etc. etc. etc..''

ALL companies who have primarily brick and mortar stores are in big trouble. Same goes for shopping malls. No mystery here.

And who are they losing business to?
Entities that sell their goods mostly (if not strictly) online.

If eBay has a mere 2% increase in sales in the eCommerce arena, this would be considered a loss, as most all other online sales companies are reporting much higher increases.

A raise on postal rates, a structured catalog (which is neither), artificial intelligence (ditto), more advertising, and cutting eBay Bucks in half still has not produced tangible profits.

And Wenig is stating ''Just wait until you see the increases in our revenue when we feature more Promoted Listings, roll out 3 day delivery guarantees, and take away half of the TRS seller discounts''.

I can't wait for the financials for next quarter after these ''site improvements'' have been enacted.



Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: cash4clothesbozeman This user has validated their user name.
       
Thu Apr 20 00:37:11 2017
What was stunning to me about the article is ebay is buying back 350 million dollars of it's common stock.  I have a decrease of 70% in sales over the last two years coupled with shipping increases and bennifit decreases.  Now ebay is fufilling through Amazon  Good lord which way is up?
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: handmedownheaven This user has validated their user name.
       Web Site
Thu Apr 20 01:00:45 2017
Gee wish mine did.  I closed my store and 3 weeks later they offered me 3 months free if I re-opened.  So I did.  That was 2 weeks ago and I have not had one sale since I did that.  I'm in a tough market (resale clothing) but I do better than ebay between my website and my Shopify store on Facebook.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: Chicago48 This user has validated their user name.
       
Thu Apr 20 01:07:11 2017
The last time I visited the community boards, sellers were closing their stores.  Said the fees didn't justify it because the sales were down.  I'm pulling my clothing & accessories and moving them to dedicated sites.  I'm getting zilch, nothing from EB sales.  So I don't know who's benefiting.
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: Rexford
       
Thu Apr 20 07:31:28 2017
Paging the eBay Sales Armada!
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: toolguy
       
Thu Apr 20 10:13:49 2017
If you're like me and DON'T sell things you can buy at Walmart or Home Depot eBay's still the go to place to sell and buy!

eBay continues to pay my bills. . .
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: Scotty This user has validated their user name.
       
Thu Apr 20 10:33:17 2017
The Streets reaction:
32.75 USD
Last 10:19:09 AM EDT
-1.105 (-3.26%)
Change
7,796,083
Volume
22.3034.73  
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: Frank Abagnale This user has validated their user name.
       
Thu Apr 20 12:54:25 2017
Amazon stock currently up $5 today at $905
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: pace306 This user has validated their user name.
       
Thu Apr 20 13:20:51 2017
WOW! eBay stock went up a whole 10 cents!

$32.85 -1.00 (-2.97%)

it went up 10 cents since Scotty posted

TOOL - keep going !!!!! MAYBE the stock will go up ANOTHER 10 cents if you resell some more old tools!
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
by: pace306 This user has validated their user name.
       
Thu Apr 20 13:33:11 2017
MING FOR PRESIDENT =)

"On the positive front, James Cakmak, an analyst with Monness, Crespi, Hardt, said eBay has seen growth and improvements with take rate..."

AKA HIGHER FEES!    
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: Ming the Merciless
       
Thu Apr 20 15:21:47 2017
@pace306

"MING FOR PRESIDENT =)"

Can't do it. I don't have the ultimate comb over of orange hair. I tell the truth most of the time, don't sexually harass women,  
Perminate Link for eBay Grows Sales 5 Percent in First Quarter 2017   eBay Grows Sales 5 Percent in First Quarter 2017
This user has validated their user name. by: Ming the Merciless
       
Thu Apr 20 15:24:03 2017
These freed machine Wall Street analysts don't understand that ebafia's stop gap "take rate" is exactly what's killing the marketplace.

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