eBay said Thursday that it saw 6 million new and reactivated buyers in April and May as stay-at-home orders shuttered physical stores and sparked a surge in online shopping. The increase in active buyers led to stronger than expected gross merchandise volume (GMV) and eBay is now raising its revenue guidance for the second quarter.
In April, eBay projected Q2 earnings between 73 cents and 80 cents per share with revenue in the range of $2.38 billion and $2.48 billion. eBay now expects Q2 EPS between $1.02 and $1.06 with revenue in the range of $2.75 billion to $2.80 billion.
For its GMV outlook, eBay said it expects growth rates to land between 23% and 26% as compared to the prior year period. Shares of eBay were up over 7% in early trading.
eBay said sales through its marketplace have grown across all categories, including home and garden, electronics, fashion and auto parts. The company said revenue from its classifieds business is at the high end of its previously disclosed expectations, with automotive subscription revenue recovering as dealerships reopen across international markets.
eBay also said that it's increasing its investments in marketing and technology in an effort to retain new buyers and increase purchase frequency.
eBay is also benefitting from the sale of its ticket subsidiary StubHub to Viagogo for $4.05 billion. The deal closed in February, just before the coronavirus pandemic essentially wrecked the ticketing and live events industry.
Last March eBay faced investor-led pressure to restructure and sell some of its businesses. In response, the company's board approved a strategic review of eBay's assets, including StubHub and eBay Classifieds Group. eBay has not provided any updates on the potential sale of its classifieds business.