EBAY's Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y

Core Viewpoint - eBay Inc. reported strong second-quarter 2024 results with non-GAAP earnings of $1.18 per share, exceeding estimates and showing a 15% year-over-year increase [1] Financial Performance - Net revenues reached $2.57 billion, surpassing estimates by 1.7% and increasing 1% year-over-year on a reported basis and 2% on an FX-neutral basis [1] - Gross merchandise volume (GMV) totaled $18.42 billion, reflecting a 1% year-over-year growth on both reported and FX-neutral bases, exceeding the consensus estimate of $18.1 billion [3] - eBay's gross margin was 71.4%, down 30 basis points year-over-year, while operating expenses decreased by 1.2% to $1.29 billion [4] Advertising Performance - First-party advertising products generated $384 million in revenues, up 12% on an FX-neutral basis year-over-year [1] - Total advertising offerings yielded $398 million, growing 8% year-over-year on an FX-neutral basis [1] - However, third-party advertising products saw a significant decline, generating only $14 million, down 49% year-over-year on an FX-neutral basis [1] Buyer Metrics - eBay's active buyer base remained flat at 132 million year-over-year, slightly below consensus expectations [2] - Excluding acquisitions, the active buyer count was 131 million [2] Balance Sheet & Cash Flow - As of June 30, 2024, cash equivalents and short-term investments increased to $5.2 billion from $3.9 billion at the end of the previous quarter [5] - Long-term debt remained stable at $6.17 billion [5] - Cash generated from operating activities was $367 million, down from $615 million in the previous quarter [6] Shareholder Returns - eBay repurchased $1 billion worth of shares and paid out dividends totaling $135 million during the reported quarter [6] Guidance - For Q3 2024, eBay expects revenues between $2.50 billion and $2.56 billion, with an anticipated FX-neutral growth of 1-3% [7] - GMV for Q3 is projected to be between $17.8 billion and $18.2 billion [7] - Non-GAAP earnings per share are expected to be between $1.15 and $1.20, with the consensus estimate at $1.13 [7] Market Position - eBay has gained 28.8% year-to-date, outperforming the industry growth of 14.1% [1] - The company currently holds a Zacks Rank 1 (Strong Buy) [8]