eBay's Q1 beats expectations, shares slip on soft guidance

eBay expects Q2 adjusted profit between 43 cents to 45 cents per share. Analysts were expecting 47 cents per share.

eBay reported first quarter financial results that beat expectations but its second quarter profit guidance sent shares tumbling nearly five percent after hours.

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The San Jose, Calif.-headquartered corporation said it expects Q2 adjusted profit between 43 cents to 45 cents per share. Analysts on average were expecting 47 cents per share.

As for the rest of the numbers, eBay reported first quarter net income of $538 million, or 94 cents per share.

Non-GAAP earnings were 49 cents per share with revenue at $2.22 billion.

Wall Street was looking for earnings of 48 cents per share on revenue of $2.21 billion.

"The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business," said eBay CEO Devin Wenig. "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."

eBay said gross merchandise volume came in at $20.9 billion. The bulk came from its marketplace platforms, which delivered $20.0 billion of GMV and $1.8 billion of revenue. The company said it added two million active buyers across its platforms, for a total of 169 million

For the fiscal year, eBay expects net revenue between $9.3 billion and $9.5 billion. Wall Street is expecting around $9.41 billion.

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