Key Highlights
- eBay delivered Q1 adjusted EPS of $1.66, representing a 21% increase and exceeding the $1.25 analyst projection
- Quarterly revenue reached $3.1 billion, climbing 19% and surpassing the $3.04 billion consensus
- Gross merchandise volume totaled $22.2 billion, rising 18% and beating the $21.7 billion expectation
- Q2 revenue projections of $2.97B–$3.03B aligned with forecasts, while GMV guidance showed a decline from Q1 performance
- The company revealed plans for a $1.2 billion Depop purchase and reduced headcount by 6.5%
eBay delivered impressive results across nearly all major financial indicators in Q1, yet shares retreated in response. Such reactions are typical during earnings season.
The e-commerce platform reported adjusted earnings of $1.66 per share for the quarter ending March 31, reflecting a 21% year-over-year gain. Wall Street had projected $1.25. Revenue totaled $3.1 billion, climbing 19% compared to the anticipated $3.04 billion.
Gross merchandise volume — representing the aggregate value of items transacted across the platform — increased 18% to reach $22.2 billion, exceeding the $21.7 billion consensus estimate.
Active buyer count reached 136 million, marginally higher than the anticipated 135.2 million.
CEO Jamie Iannone characterized the performance as “a strong start to the year,” highlighting momentum within Focus Categories, the consumer-to-consumer segment, and the pre-owned and refurbished marketplace.
eBay’s artificial intelligence-driven “Magical Listings” feature contributed to a greater than 50% surge in new listing creation rates across the platform. The platform also recorded over 30 million scans through its AI-enabled card-pricing tool throughout the quarter.
Collectibles demonstrated robust performance. The company’s Goldin division achieved an unprecedented Q1 GMV milestone, featuring a $16.5 million transaction for a PSA 10 Pikachu Illustrator card — establishing a new benchmark for individual sales.
Q2 Projections Fall Short of Expectations
Looking ahead to Q2, eBay projected GMV between $21.3 billion and $21.7 billion — representing 8% to 10% year-over-year growth, yet trailing the $22.2 billion achieved in Q1. This sequential downturn seemed to trigger investor concern.
Q2 revenue projections ranging from $2.97 billion to $3.03 billion matched the $2.97 billion analyst consensus. Adjusted EPS guidance landed between $1.46 and $1.51.
Shares declined approximately 7% during after-hours trading Wednesday before recovering somewhat to around 1.5% lower in Thursday’s premarket session. Leading up to Wednesday’s market close, the stock had appreciated 19% year to date and 52% over the trailing twelve months.
Depop Acquisition and Workforce Reduction
On Feb. 19, eBay revealed plans to purchase Depop from Etsy for $1.2 billion in cash. The pre-owned fashion marketplace serves 7 million active buyers and 3 million active sellers, with the majority under age 34. The transaction is anticipated to finalize by Q3’s conclusion, pending regulatory clearance.
One week following the Depop announcement, eBay disclosed a reduction of approximately 6.5% of its global workforce — roughly 800 positions — as part of organizational restructuring efforts.
CEO Iannone observed that while American consumers demonstrate continued strength, European markets face greater challenges, with heightened economic strain affecting consumer spending patterns. He mentioned that growing numbers of eBay shoppers are gravitating toward pre-owned and refurbished merchandise.
The platform distributed $639 million to shareholders during Q1 — comprising $500 million through share repurchases and $139 million via dividend payments. A Q2 cash dividend of 31 cents per share was announced, scheduled for payment on June 12 to shareholders registered as of May 29.
During Q1 2025, eBay had posted adjusted EPS of $1.38 alongside revenue of $2.59 billion.
