eBay Reports 2% Revenue Growth in Q1 FY24, Hits $2.55 Billion
American e-commerce giant eBay has unveiled its financial performance for the first quarter (Q1) of fiscal year 2024 (FY24), showcasing a 2% uptick in revenue compared to the same period last year. Revenue climbed from $2.510 billion in Q1 FY23 to $2.55 billion in Q1 FY24.
During this quarter, eBay experienced a notable surge in advertising revenue, with its first-party advertising products generating $370 million – marking a 30% increase on an as-reported basis and a 28% rise on an FX-neutral basis, aimed at mitigating the impact of foreign exchange (FX) volatility.
The company’s gross merchandise volume (GMV) for the quarter reached $18.6 billion, a 1% increase on an as-reported basis from Q1 FY23.
However, eBay’s GAAP (generally accepted accounting principles) net income from continuing operations witnessed a 23% decline, dropping to $439 million in Q1 FY24 from $569 million in Q1 FY23. This was reflected in the earnings per share (EPS) figures, which decreased by 19% to $0.85 from $1.05 in Q1 FY23. On the other hand, non-GAAP net income from continuing operations improved, rising by 8% to $648 million in Q1 FY24, with EPS climbing 13% to $1.25.
The company reported GAAP and non-GAAP operating margins at 24.7% and 30.3%, respectively.
In terms of cash flow, eBay demonstrated strength, generating $615 million in operating cash flow and $472 million in free cash flow during Q1 FY24.
eBay continued to focus on delivering value to its shareholders by repurchasing $499 million in shares and paying out $139 million in cash dividends, totaling $638 million during the quarter.
Expanding its services, eBay included luxury apparel in its consignment offering during the quarter.
Commenting on the results, eBay CEO Jamie Iannone remarked, “eBay’s Q1 results marked a strong start to 2024 as we continue to make progress toward our goal of sustainable GMV growth. We believe our accelerating pace of innovation is fundamentally changing the selling and buying experience on eBay, generating better outcomes for customers, increasing productivity across our organization, and ultimately driving more value for shareholders.”
Looking forward to the second quarter, eBay expects revenue to be in the range of $2.49 billion to $2.54 billion, with diluted GAAP EPS anticipated to range from $0.76 to $0.81.
