TLDR
- Q1 adjusted earnings per share reached $1.66, representing a 21% jump and surpassing the $1.25 consensus
- Total revenue climbed to $3.1 billion, marking a 19% increase and exceeding the $3.04 billion projection
- Gross merchandise volume totaled $22.2 billion, rising 18% and beating the $21.7 billion expectation
- Second-quarter revenue forecast of $2.97B–$3.03B aligned with estimates, though GMV projections trailed Q1 performance
- The e-commerce giant revealed plans to acquire Depop for $1.2 billion while reducing headcount by 6.5%
eBay delivered an impressive first quarter that exceeded analyst projections across virtually all major benchmarks, yet shareholders still sent the stock lower. Welcome to the unpredictable world of quarterly earnings.
The e-commerce platform announced adjusted profits of $1.66 per share for the three months concluding March 31, representing a 21% year-over-year surge. The Street had anticipated $1.25. Total sales reached $3.1 billion, climbing 19% and surpassing the $3.04 billion consensus.
Gross merchandise volume — representing the aggregate dollar value of items transacted through the marketplace — jumped 18% to $22.2 billion, outperforming Wall Street’s $21.7 billion projection.
The platform’s active buyer count stood at 136 million, marginally 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, its consumer-to-consumer operations, and the pre-owned and refurbished merchandise segments.
The company’s artificial intelligence-driven “Magical Listings” feature contributed to a greater than 50% surge in new listing velocity across the platform. Additionally, eBay recorded over 30 million scans through its AI-powered card valuation tool throughout the period.
The collectibles category delivered exceptional performance. eBay’s Goldin division achieved a first-quarter GMV milestone, highlighted by a $16.5 million transaction for a PSA 10 Pikachu Illustrator card — establishing a benchmark for individual sales.
Second Quarter Projections Fall Short
Looking ahead to Q2, eBay forecasted GMV in the range of $21.3 billion to $21.7 billion — reflecting 8% to 10% annual growth, yet trailing the $22.2 billion achieved in Q1. This quarter-over-quarter decline seemingly triggered investor concern.
The company’s second-quarter revenue projection of $2.97 billion to $3.03 billion essentially matched the $2.97 billion analyst consensus. Adjusted earnings per share guidance landed between $1.46 and $1.51.
Shares declined approximately 7% during Wednesday’s after-hours session before recovering somewhat to a 1.5% loss in Thursday’s premarket activity. As of Wednesday’s closing bell, the stock had appreciated 19% year-to-date and 52% over the trailing twelve months.
Depop Acquisition and Workforce Reduction
On February 19, eBay revealed its intention to purchase Depop from Etsy in an all-cash transaction valued at $1.2 billion. The pre-owned fashion marketplace boasts 7 million active purchasers and 3 million active vendors, with the majority under age 34. The transaction is anticipated to finalize by the conclusion of Q3, pending regulatory clearance.
Seven days following the Depop announcement, eBay disclosed plans to eliminate approximately 6.5% of its global staff — roughly 800 positions — as part of an organizational realignment.
CEO Iannone observed that while American consumers demonstrate continued strength, the European landscape presents greater challenges, with heightened economic headwinds constraining consumer expenditure. He indicated that increasing numbers of eBay shoppers are gravitating toward secondhand and refurbished merchandise.
The organization distributed $639 million to shareholders during Q1 — comprising $500 million through stock repurchases and $139 million via dividend payments. A second-quarter cash dividend of 31 cents per share was authorized, payable June 12 to stockholders of record on May 29.
For the first quarter of 2025, eBay had previously posted adjusted EPS of $1.38 alongside revenue of $2.59 billion.
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