EBAY Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

Financial Performance - eBay Inc. reported first-quarter 2025 non-GAAP earnings of $1.38 per share, exceeding the Zacks Consensus Estimate by 2.99% and reflecting a 10% year-over-year increase [1] - Net revenues reached $2.58 billion, surpassing the Zacks Consensus Estimate by 1.49%, with a 1% increase from the previous year on a reported basis and a 2% increase on an FX-neutral basis [2] - Operating expenses were $1.24 billion, growing 1.71% year over year, while the non-GAAP operating margin was 29.8%, down 50 basis points from the previous year [5] Advertising Revenue - First-party advertising products generated revenues of $418 million, marking a 13% increase on an as-reported basis and a 14% increase on an FX-neutral basis [2] - Total advertising offerings yielded $442 million in revenues, representing 2.4% of gross merchandise volume (GMV) [2] Gross Merchandise Volume (GMV) - eBay's total GMV for the quarter was $18.8 billion, showing a year-over-year growth of 1% on a reported basis and 2% on an FX-neutral basis, exceeding the Zacks Consensus Estimate of $18.5 billion [4] - U.S. GMV totaled $9.06 billion, accounting for 48.3% of total GMV, with a 1% year-over-year increase, while international GMV was $9.68 billion, accounting for 51.7% of total GMV, with no year-over-year change [4] Active Buyer Base - eBay's active buyer base was 134 million at the end of the first quarter, reflecting a 1% year-over-year increase but missing the consensus mark by 0.10% [3] Cash Flow and Shareholder Returns - The company generated $787 million in cash from operating activities, up from $677 million in the previous quarter, with free cash flow at $644 million [6] - eBay repurchased $625 million worth of shares and paid out dividends of $134 million during the quarter, with $2.7 billion remaining under its buyback authorization as of March 31, 2025 [7] Guidance - For the second quarter of 2025, eBay expects revenues between $2.59 billion and $2.66 billion, with an anticipated revenue growth of (1)-2% on an FX-neutral basis [9] - The non-GAAP operating margin for the second quarter is expected to be between 27% and 27.8%, with GMV projected to be in the range of $18.6 billion to $19.1 billion [9][10]