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Jun 30, 2020

eBay Q2 2020 Earnings Report

eBay surpassed expectations in Q2 2020 due to team's focus on supporting small businesses and communities, re-engaging existing buyers and sellers, and introducing new customers to the platform.

Key Takeaways

eBay Inc. reported strong second-quarter results, with revenue reaching $2.9 billion, up 18% year-over-year. The company added approximately 8 million new customers and saw a 26% increase in Gross Merchandise Volume (GMV). GAAP EPS was $1.04, and Non-GAAP EPS was $1.08.

Revenue of $2.9 billion, up 18% year-over-year.

Gross Merchandise Volume (GMV) of $27.1 billion, up 26% year-over-year.

GAAP and Non-GAAP EPS per diluted share of $1.04 and $1.08, respectively.

Annual active buyers grew by 5%, adding approximately 8 million buyers, for a total of 182 million global active buyers.

Total Revenue
$2.87B
Previous year: $2.69B
+6.6%
EPS
$1.08
Previous year: $0.68
+58.8%
Active Buyers
182M
Previous year: 173M
+5.2%
Gross Merchandise Volume
$27.1B
Previous year: $21.5B
+26.1%
Gross Profit
$2.27B
Previous year: $1.87B
+21.2%
Cash and Equivalents
$1.01B
Previous year: $1.51B
-33.3%
Free Cash Flow
$866M
Previous year: $605M
+43.1%
Total Assets
$20B
Previous year: $21.2B
-5.5%

eBay

eBay

Forward Guidance

eBay expects net revenue between $2.64 billion and $2.71 billion for Q3 2020, representing Organic FX-Neutral growth of 14% - 17%. GAAP earnings per diluted share from continuing operations are expected to be in the range of $0.58 - $0.64, and non-GAAP earnings per diluted share from continuing operations are expected to be in the range of $0.81 - $0.87. For the full year 2020, eBay expects net revenue between $10.56 billion and $10.75 billion, representing Organic FX-Neutral growth of 12% - 14%. GAAP earnings per diluted share from continuing operations are expected to be in the range of $2.85 - $3.00, and non-GAAP earnings per diluted share from continuing operations are expected to be in the range of $3.47 - $3.59.

Positive Outlook

  • Net revenue between $2.64 billion and $2.71 billion for Q3 2020.
  • Organic FX-Neutral growth of 14% - 17% for Q3 2020.
  • GAAP earnings per diluted share from continuing operations in the range of $0.58 - $0.64 for Q3 2020.
  • Non-GAAP earnings per diluted share from continuing operations in the range of $0.81 - $0.87 for Q3 2020.
  • Net revenue between $10.56 billion and $10.75 billion for full year 2020.

Challenges Ahead

  • Guidance reflects management's expectations for operational performance and the impacts seen in both of our Marketplaces and Classifieds platforms to date.
  • It is difficult to predict exactly how buyer behavior, retail channel shifts, and changes in the economic environment will affect our volume over time.
  • The guidance we are providing assumes Classifieds results are included in the entire year.
  • Future performance involves risks and uncertainties.
  • Actual results could differ materially from the information provided.