Key Highlights
- First-quarter adjusted EPS reached $1.66, marking a 21% increase and surpassing the $1.25 consensus
- Quarterly revenue totaled $3.1 billion, climbing 19% and exceeding the $3.04 billion projection
- Platform GMV reached $22.2 billion, rising 18% and beating the $21.7 billion forecast
- Second-quarter revenue outlook of $2.97B–$3.03B aligned with expectations, though GMV projections showed sequential decline
- Company revealed plans to acquire Depop for $1.2 billion while reducing headcount by 6.5%
Despite delivering stellar first-quarter results that surpassed Wall Street forecasts across most metrics, eBay shares still faced selling pressure. Welcome to the complexities of quarterly reporting.
The e-commerce giant delivered adjusted earnings per share of $1.66 for the three months ending March 31, representing a 21% year-over-year jump. The Street had anticipated $1.25. Total revenue reached $3.1 billion, climbing 19% and surpassing the $3.04 billion consensus.
Gross merchandise volume — representing the aggregate dollar value of transactions on the marketplace — increased 18% to $22.2 billion, topping Wall Street’s $21.7 billion projection.
The platform’s active buyer count reached 136 million, narrowly exceeding the anticipated 135.2 million.
Chief Executive Jamie Iannone characterized the performance as “a strong start to the year,” highlighting momentum in Focus Categories, the consumer-to-consumer segment, and the growing pre-owned and refurbished merchandise sector.
The company’s artificial intelligence-enabled “Magical Listings” functionality contributed to a greater than 50% surge in new listing creation rates. Additionally, users performed over 30 million scans using the AI-powered card pricing tool throughout the period.
The collectibles category demonstrated robust performance. eBay’s Goldin division achieved a record first-quarter GMV, highlighted by a $16.5 million transaction for a PSA 10 Pikachu Illustrator card — establishing a new benchmark for individual sales.
Second Quarter Outlook Falls Short
Looking ahead to Q2, eBay projected GMV between $21.3 billion and $21.7 billion — representing 8% to 10% year-over-year growth, but representing a sequential decline from Q1’s $22.2 billion. This quarter-over-quarter softness appeared to trigger investor concern.
The company’s second-quarter revenue projection of $2.97 billion to $3.03 billion came in essentially aligned with analyst expectations of $2.97 billion. Adjusted earnings per share guidance ranged from $1.46 to $1.51.
Shares declined approximately 7% during Wednesday’s after-hours session before recovering somewhat to a 1.5% decline in Thursday’s premarket activity. Prior to Wednesday’s close, the stock had advanced 19% year-to-date and surged 52% over the trailing twelve months.
Fashion Platform Acquisition and Workforce Reduction
On February 19, eBay disclosed its intention to purchase Depop from Etsy in an all-cash transaction valued at $1.2 billion. The vintage and secondhand fashion marketplace boasts 7 million active purchasers and 3 million active merchants, with the majority under age 34. Transaction completion is anticipated by the conclusion of the third quarter, pending regulatory clearance.
Approximately one week following the Depop announcement, eBay revealed plans to eliminate roughly 6.5% of its global employee base — approximately 800 positions — as part of an organizational realignment.
CEO Iannone observed that while American consumers continue showing strength, European markets face greater challenges, with heightened economic headwinds impacting consumer spending patterns. He mentioned increasing customer preference for previously owned and refurbished merchandise.
During the first quarter, the company distributed $639 million to shareholders — comprising $500 million through share repurchases and $139 million via dividend payments. A second-quarter cash dividend of 31 cents per share was authorized, scheduled for June 12 payment to stockholders of record as of May 29.
In the first quarter of 2025, eBay had delivered adjusted EPS of $1.38 on revenue totaling $2.59 billion.
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