eBay narrowly beats expectations for Q3
eBay on Wednesday posted its third-quarter financial results, narrowly beating market expectations. Still, shares were down in after-hours trading, as the company gave a cautious outlook for the fourth quarter and reported a gross merchandise volume that missed expectations.
The ecommerce company reported non-GAAP earnings of 45 cents a share on revenue of $2.22 billion. Wall Street was expecting 44 cents a share on revenue of $2.19 billion.
The company generated $802 million of operating cash flow and $617 million of free cash flow from continuing operations while also repurchasing $500 million of its common stock.
While continuing with its long-term structured data initiative to improve the user experience, eBay did see more buyers on the platform during the quarter. It added over one million active buyers across its platforms to a total of 165 million global active buyers. Its gross merchandise volume (GMV) for the quarter hit $20.1 billion, falling short of the expected $20.3 billion.
"In Q3 we delivered good top- and bottom-line financial results, led by consistent performance across our business," said President and CEO Devin Wenig in a statement. "We continued to transform the shopping experience on eBay, delivered more personalization capabilities and began to activate our updated brand messaging."
The eBay marketplace delivered revenue of $1.8 billion for the quarter. StubHub brought in $263 million in revenue, up from $225 million the prior quarter.
For the current quarter, eBay is expecting between $2.36 billion and $2.41 billion in revenue, with an EPS of 52 cents to 54 cents. For the year, the company is expecting an EPS between $1.85 and $1.90 and revenue between $8.95 billion and $9 billion.