Quick Overview
- eBay delivered Q1 adjusted EPS of $1.66, representing a 21% increase and surpassing the $1.25 consensus
- Quarterly revenue reached $3.1 billion, marking a 19% jump and exceeding the $3.04 billion projection
- Platform gross merchandise volume climbed 18% to $22.2 billion, beating the $21.7 billion forecast
- Second-quarter revenue outlook of $2.97B–$3.03B aligned with expectations, though GMV projections trailed Q1 performance
- Company revealed a $1.2 billion Depop acquisition and eliminated approximately 6.5% of staff
eBay’s first-quarter performance exceeded Wall Street projections across virtually all major benchmarks, yet shares still declined in the aftermath. Welcome to the unpredictable nature of quarterly earnings reports.
The e-commerce platform delivered adjusted earnings of $1.66 per share for the three-month period ending March 31, reflecting a 21% year-over-year improvement. Market analysts had anticipated $1.25. Top-line revenue registered at $3.1 billion, marking a 19% gain versus the $3.04 billion consensus.
Gross merchandise volume — representing the aggregate dollar value of items transacted through the marketplace — advanced 18% to reach $22.2 billion, outperforming Wall Street’s $21.7 billion projection.
The platform’s active buyer count reached 136 million, marginally exceeding the anticipated 135.2 million.
Chief Executive Jamie Iannone characterized the quarterly performance as “a strong start to the year,” highlighting momentum across Focus Categories, the consumer-to-consumer segment, and the pre-owned and refurbished merchandise sectors.
The company’s AI-driven “Magical Listings” feature contributed to a more than 50% surge in new listing creation velocity. Additionally, eBay’s AI-powered card valuation tool registered over 30 million scans throughout the quarter.
The collectibles category demonstrated robust performance. eBay’s Goldin division achieved a record-breaking Q1 GMV milestone, highlighted by a $16.5 million transaction for a PSA 10 Pikachu Illustrator card — establishing a new benchmark for individual sale value.
Second Quarter Outlook Falls Short
Looking ahead to Q2, eBay projected GMV between $21.3 billion and $21.7 billion — representing 8% to 10% year-over-year growth, yet trailing the $22.2 billion achieved in Q1. This quarter-over-quarter decline seemingly triggered investor concern.
Second-quarter revenue projections of $2.97 billion to $3.03 billion essentially matched the $2.97 billion analyst consensus. Adjusted earnings per share guidance landed between $1.46 and $1.51.
Shares dropped approximately 7% during Wednesday’s after-hours session before paring losses to roughly 1.5% in Thursday’s premarket activity. Prior to Wednesday’s market close, the stock had appreciated 19% year-to-date and 52% over the trailing twelve months.
Depop Acquisition and Staff Reductions
On February 19, eBay announced plans to purchase Depop from Etsy for $1.2 billion in cash consideration. The pre-owned fashion marketplace serves 7 million active purchasers and 3 million active vendors, predominantly under age 34. Transaction completion is anticipated by Q3’s conclusion, pending regulatory clearance.
One week following the Depop announcement, eBay disclosed workforce reductions affecting approximately 6.5% of global personnel — roughly 800 positions — as component of organizational restructuring efforts.
CEO Iannone observed that while American consumers maintain resilience, European markets face greater challenges, with heightened economic pressures constraining discretionary spending. He noted increasing consumer migration toward pre-owned and refurbished merchandise on the platform.
The organization distributed $639 million to shareholders during Q1 — comprising $500 million in share repurchases and $139 million in dividend payments. A Q2 cash dividend of 31 cents per share was authorized, distributable June 12 to shareholders recorded as of May 29.
For Q1 2025, eBay had previously reported adjusted EPS of $1.38 on revenue totaling $2.59 billion.
