eBay revenue was down 5% in the 3rd quarter, year-over-year, (or 2% excluding the effects of foreign exchange). GMV (Gross Merchandise Volume) was down 11% (or 5% on an FX-neutral basis). But the company called the results better than expected.
eBay CEO Jamie Iannone said in Wednesday's announcement, "Our third quarter results demonstrate significant progress against our long-term objectives and exceeded expectations for all key business metrics. I'm proud of our team and community for remaining resilient in the face of a challenging macroeconomic environment. With the investments we've made in our tech-led reimagination, we're able to provide even more opportunity and value to our customers during these difficult times."
eBay provided the following third-quarter financial highlights:
- Revenue was $2.4 billion, down 5% on an as-reported basis and down 2% on a foreign exchange (FX) neutral basis.
- Gross Merchandise Volume (GMV) was $17.7 billion, down 11% on an as-reported basis and down 5% on an FX-Neutral basis.
- GAAP net loss from continuing operations was $70 million, or $(0.13) per diluted share, primarily driven by the change in fair value of our equity investments.
- Non-GAAP net income from continuing operations was $552 million, or $1.00 per diluted share.
- GAAP and Non-GAAP operating margin of 23.9% and 28.9%, respectively.
- Generated $735 million of operating cash flow and $633 million of free cash flow from continuing operations.
- Sold eBay's remaining shares in Adyen for approximately $120 million.
- Returned over $421 million to shareholders, including $301 million of share repurchases and $120 million paid in cash dividends.
It also noted its recent acquisition of TCGplayer ("a leading technology platform for collectibles and one of the largest online marketplaces for trading card games, for a total deal value of up to approximately $295 million in cash"), which it said complements its "focus category" strategy; as well as its acquisition of the myFitment group of companies ("a leader in delivering the tools and support to help online automotive and powersports parts and accessories sellers thrive").
As for revenue initiatives, eBay said its first party advertising products, primarily driven by Promoted Listings, delivered $249 million of revenue in the third quarter, up 19% on an as-reported basis and up 27% on an FX-Neutral basis. Its total advertising offerings generated over $290 million in revenue in the third quarter, representing roughly 1.6% of GMV.
It also expanded Klarna availability to buyers engaged in cross-border transactions in Germany, and announced faster payment options for sellers ("enabling on-demand payouts to a debit card within 30 minutes or less for a fee").
eBay reported 135 million active buyers at the end of the third quarter compared to 152 million at the end of Q3 2021.