• Revenue: Increased over 1% to $2.58 billion.
• Gross Merchandise Volume (GMV): Grew nearly 2% to $18.8 billion.
• Non-GAAP Earnings Per Share: Grew by 10% to $1.38.
• Non-GAAP Operating Income: $771 million.
• Capital Returned to Shareholders: Approximately $760 million through repurchases and cash dividends.
• First Party Advertising Revenue: Grew 14% to $418 million.
• Free Cash Flow: $644 million.
• Cash and Non-Equity Investments: $6.2 billion at the end of the quarter.
• Gross Debt: $6.7 billion after paying down $800 million of senior notes.
• Equity Investments: Valued at over $1.1 billion, with a significant stake in Narulia valued at nearly $900 million.
• Take Rate: Approximately 13.8%, increasing nearly 10 basis points year over year.
• Active Buyers: Grew over 1% to 134 million.
• Dividend: Quarterly cash dividend of $0.29 per share.

• Warning! GuruFocus has detected 9 Warning Signs with EBAY.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• eBay Inc (NASDAQ:EBAY) reported its fourth consecutive quarter of positive gross merchandise volume (GMV) growth, with a nearly 2% increase to $18.8 billion.
• Revenue increased over 1% to $2.58 billion, and non-GAAP earnings per share grew by 10% to $1.38.
• The company returned approximately $760 million to shareholders through repurchases and cash dividends.
• Focus category GMV grew by over 6%, with collectibles being a significant contributor, particularly in trading cards.
• eBay Inc (NASDAQ:EBAY) continues to innovate with AI-powered shopping experiences and strategic partnerships, enhancing customer experience and marketplace efficiency.

Negative Points

• Tariffs and changes to customs requirements in the US have created uncertainty for small businesses and weighed on consumer confidence.
• The macro environment remains uncertain, with uneven demand and potential impacts from trade policy changes.
• International markets, particularly Germany and the UK, are experiencing weaker macroeconomic conditions compared to the US.
• Non-GAAP gross margin declined due to headwinds from depreciation expense and traffic acquisition costs.
• The UK C2C initiative pressured overall take rate by approximately 30 basis points in Q1.

Q & A Highlights

Q: How is eBay addressing demand elasticity in an environment where pricing might increase significantly? A: Jamie Iannone, CEO, explained that eBay is in a strong position due to its vast global seller base and CBT shipping solutions. The platform's inventory of used and refurbished goods, which is growing faster than new goods, provides value to consumers during uncertain times. eBay also attracts new sellers looking to generate income, enhancing its resilience.

Q: What is the impact of China tariffs on eBay's business, particularly for China-based exporters? A: Jamie Iannone noted that the Greater China to US corridor accounts for about 5% of eBay's total GMV. Most of this is already subject to tariffs, and eBay's Speed pack shipping solution helps manage tariff complexities. The platform's global inventory allows for substitution, mitigating potential impacts.

Q: How is eBay's advertising revenue affected by tariffs, especially from China-based merchants? A: Jamie Iannone stated that there has been no material impact on advertising revenue from tariffs. eBay's advertising demand is distributed across a large seller base, and the platform continues to see strong adoption of its ad products, with over 3.7 million sellers using at least one promoted listing product.

Q: How does eBay view the potential impact of agentic commerce on consumer shopping behavior? A: Jamie Iannone highlighted eBay's use of agent technology across various functions, including marketing and customer support. The company is exploring partnerships and internal developments to leverage AI and agentic commerce, enhancing customer experience and operational efficiency.

Q: What is eBay's strategy for leveraging its inventory of pre-owned and refurbished goods? A: Jamie Iannone emphasized eBay's focus on marketing the value proposition of pre-owned goods, both for buyers and sellers. The company is investing in AI-powered tools like magical listing to simplify the selling process and unlock more inventory, aiming to capitalize on the significant C2C market opportunity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.