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Sep 30, 2022

eBay Q3 2022 Earnings Report

eBay's Q3 2022 results demonstrated progress against long-term objectives and exceeded expectations for all key business metrics.

Key Takeaways

eBay Inc. reported its Q3 2022 financial results, with revenue of $2.4 billion, a 5% decrease year-over-year, and a GAAP net loss of $70 million. However, non-GAAP net income was $552 million, or $1.00 per diluted share. The company returned $421 million to shareholders through share repurchases and cash dividends.

Revenue was $2.4 billion, down 5% year-over-year.

Gross Merchandise Volume (GMV) was $17.7 billion, down 11% year-over-year.

GAAP net loss from continuing operations was $70 million, or $(0.13) per diluted share.

Non-GAAP net income from continuing operations was $552 million, or $1.00 per diluted share.

Total Revenue
$2.38B
Previous year: $2.5B
-4.8%
EPS
$1
Previous year: $0.9
+11.1%
Active Buyers
135M
Previous year: 154M
-12.3%
Gross Merchandise Volume
$17.7B
Previous year: $19.5B
-9.2%
Gross Profit
$1.73B
Previous year: $1.82B
-4.9%
Cash and Equivalents
$2.04B
Previous year: $1.24B
+63.7%
Free Cash Flow
$633M
Previous year: $502M
+26.1%
Total Assets
$19.1B
Previous year: $29.3B
-34.7%

eBay

eBay

Forward Guidance

eBay provided guidance for Q4 2022, expecting revenue between $2.42 and $2.50 billion and diluted EPS from continuing operations between $0.76 and $0.82 (GAAP) and $1.03 and $1.09 (Non-GAAP). For the full year 2022, revenue is expected to be between $9.71 and $9.79 billion, and diluted EPS from continuing operations between $(2.74) and $(2.68) (GAAP) and $4.07 and $4.13 (Non-GAAP).

Positive Outlook

  • Net Revenue between $2.42 - $2.50 billion for Q4 2022
  • Organic FX-Neutral Y/Y Growth of (4)% - (1)% for Q4 2022
  • Diluted GAAP EPS between $0.76 - $0.82 for Q4 2022
  • Diluted Non-GAAP EPS between $1.03 - $1.09 for Q4 2022
  • Cash dividend of $0.22 per share payable on December 16, 2022

Challenges Ahead

  • Net Revenue between $9.71 - $9.79 billion for full year 2022
  • Organic FX-Neutral Y/Y Growth of (4)% - (3)% for full year 2022
  • Diluted GAAP EPS between $(2.74) - $(2.68) for full year 2022
  • Diluted Non-GAAP EPS between $4.07 - $4.13 for full year 2022
  • The estimated GAAP diluted EPS above does not assume any gains or losses on our equity investments.