eBay delivered strong second quarter financial results Tuesday and pointed to an uptick in consumer online spending during the COVID-19 pandemic.
In June eBay said that it saw 6 million new and reactivated buyers from April through 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 significantly bolstered the company's results.
As for the numbers, the San Jose, Calif.-based e-commerce company reported second quarter net income of $770 million, or $1.04 per share. Non-GAAP earnings were $1.08 per share on revenue of $2.9 billion, up 18% from the same period last year.
Wall Street was looking for earnings of $1.06 per share on revenue of $2.8 billion.
In its financial release Tuesday, eBay said GMV was up 26% year over year to $27.1 billion. The bulk of the revenue came from eBay's Marketplace platforms, which the company said delivered $2.7 billion of revenue. Elsewhere, eBay said it grew annual active buyers by 5% across its platforms, for a total of 182 million.
Revenue from eBay's classifieds business -- which was recently sold to Norway-based Adevinta for $2.5 billion -- came to $201 million. In addition to the sale of its classifies business, eBay also recently unloaded 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.
Meanwhile, eBay said its managed payments business hit a milestone at the end of July with the expiration of its operating agreement with PayPal. The company is now able to scale its management of payments globally. Since launch, eBay has processed $4.7 billion in GMV.
In terms of guidance, eBay said it expects revenue between $2.64 billion and $2.71 billion and adjusted profit between 81 cents to 87 cents per share for the current quarter. Analysts are looking for Q3 revenue of $2.55 billion and EPS of 81 cents.
For full year 2020, eBay said it expects net revenue between $10.65 billion and $10.75 billion and earnings per share in the range of between $3.47 and $3.59. Wall Street expects eBay to report fiscal year revenue of $10.43 billion and earnings of $3.51 per share.
Shares of eBay were down more than 4% after hours.