eBay forecasts Q2 revenue below estimates as consumer spending remains strained
E-COMMERCE firm eBay forecast second-quarter revenue below Wall Street estimates on Wednesday (May 1), as demand cools for its key product categories such as collector’s items and auto parts, sending shares down 5 per cent in extended trading.
The San Jose, California-based company has been under pressure as inflation-hit shoppers are becoming increasingly choosy about their online purchases, as well as competition from larger platforms such as Amazon.com.
It expects revenue in the range of US$2.49 billion to US$2.54 billion for the quarter ending June. Analysts on average were expecting US$2.56 billion, according to LSEG data.
The company forecast adjusted per share earnings of US$1.10 to US$1.15, the mid-point of which came in below analysts estimate of US$1.14.
With bigger e-commerce platforms gaining the lion’s share of the market, eBay re-oriented itself in recent years and scaled offerings in the so-called focus categories such as luxury bags and watches, refurbished electronics and auto parts and accessories.
In 2022, eBay bought trading cards marketplace TCGplayer for US$295 million to scale the collectible cards category. It also started services to authenticate luxury and collectible items.
Revenue in the most recent quarter ended Mar 31 rose 2 per cent to US$2.56 billion, slightly above analysts’ estimate of US$2.53 billion. Adjusted per share earnings of US$1.25 came in higher than analyst estimates of US$1.20.
Gross merchandise volume, a key industry gauge that denotes the total value of goods and services sold on the marketplace, rose 1 per cent to US$18.62 billion.
Active buyers remained steady at 132 million as at March-end. The company defines active buyers as customers who paid for a transaction on eBay within the previous 12-month period. REUTERS
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