Core Insights - eBay reported Q2 2025 results that exceeded Wall Street expectations, with GAAP revenue of $2.73 billion and non-GAAP earnings per share of $1.37, reflecting a 6% and 16% year-over-year increase respectively [1][2][5] Financial Performance - GAAP revenue was $2.73 billion, surpassing the analyst consensus of $2.64 billion, and up from $2.57 billion in Q2 2024 [2][5] - Non-GAAP earnings per share reached $1.37, beating the estimate of $1.30 and representing a 16% increase from $1.18 in the previous year [2][5] - Free cash flow turned negative at ($441 million), a decline of $719 million from $278 million in the prior year [2][10] - Operating margin (non-GAAP) improved slightly to 28.4%, while GAAP operating margin decreased to 17.7% from 21.3% year-over-year [2][9] Business Model and Strategy - eBay operates a global online marketplace, generating revenue primarily from transaction fees, advertising services, and payments-related activities [3] - The company is focusing on technology advancements, particularly through AI features, to enhance the buying and selling experience [4] - Key strategic priorities include growing advertising revenue, maintaining a healthy marketplace ecosystem, and expanding targeted categories like pre-owned fashion and collectibles [4] Quarterly Highlights - Gross Merchandise Volume (GMV) reached $19.5 billion, a 6% increase year-over-year, with U.S. GMV growing 7% and international GMV increasing 5% [5][6] - Active buyers rose to 134 million, a 1% increase from the previous year [6] - Advertising revenue totaled $482 million, contributing 2.5% of GMV, with first-party advertising products generating $455 million, up 19% from the prior year [6] Technological Developments - eBay launched "eBay Live" shopping in the UK and expanded the "eBay Live on Tour" initiative in the U.S. [7] - The company introduced an AI shopping agent and a generative AI video tool for sellers [7] - The Authenticity Guarantee program expanded, authenticating over 1 million items in a single quarter [7] Sustainability and Regulatory Engagement - eBay was recognized on TIME's World's Most Sustainable Companies 2025 list and Newsweek's America's Greenest Companies 2025 list [8] - The platform raised $47 million for charity and contributed to the formation of the bipartisan Recommerce Caucus in the U.S. Congress [8] Future Guidance - For Q3 2025, eBay expects revenue between $2.69 billion and $2.74 billion, indicating 3% to 5% year-over-year growth [11] - Non-GAAP earnings per share outlook is between $1.29 and $1.34, with GMV projected between $19.2 billion and $19.6 billion [11] - Management maintains a cautious outlook due to uneven international demand, particularly in the UK and Germany [11]

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew by 4% to $19.5 billion, with revenue increasing by over 4% to $2.73 billion [9][35] - Non-GAAP operating income rose by 8% to $775 million, and non-GAAP earnings per share increased by 16% year over year to $1.37 [9][35] - The take rate was 14%, showing a modest year-over-year increase, with advertising, shipping, and financial services contributing positively [42][44] Business Line Data and Key Metrics Changes - Focus categories experienced GMV growth of over 10%, significantly outpacing core categories [10][36] - Collectibles, particularly trading cards, were the largest contributor to growth, with triple-digit GMV growth for Pokémon cards [10][11] - Motors, Parts, and Accessories contributed nearly one point of year-over-year GMV growth, driven by strength across major markets [13] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to 7%, exceeding expectations due to healthy consumer demand [38][39] - International GMV grew nearly 2% on an FX neutral basis, with foreign exchange providing a tailwind [39][41] - The U.K. and Germany investments helped navigate lower growth environments, with cross-border volume growth remaining stable [40][41] Company Strategy and Development Direction - The company is focused on enhancing the customer experience through generative AI, improving listing quality, and personalizing customer engagement [17][18][32] - eBay Live is a significant area of investment, aimed at transforming how enthusiasts discover and compete for high-demand inventory [22][23] - The company is expanding its Klarna partnership in the U.S. to attract younger demographics and improve conversion rates on high-ticket items [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the business performed well in July, reflecting sustained healthy consumer trends in the U.S. [46] - The outlook for Q3 anticipates GMV between $19.2 billion and $19.6 billion, with revenue growth expected to be modestly higher than GMV [47][50] - The company remains cautious about potential disruptions from tariffs and trade policy changes [47][50] Other Important Information - eBay was recognized as one of Time's World's Most Sustainable Companies and Newsweek's World's Greenest Companies 2025 [31] - The company returned approximately $760 million to shareholders through repurchases and cash dividends [35][45] Q&A Session Summary Question: Insights on marketing and AI's impact on traffic generation - Management highlighted a full funnel marketing approach and noted efficiencies in lower funnel marketing spend due to competitive dynamics [56][57] Question: Future category growth expectations - Management indicated that existing focus categories will continue to drive growth, with strong performance across collectibles and P&A [62][64] Question: U.S. market strength and international comparison - Management noted broad-based strength in the U.S. market, while Europe remains challenging, but investments are offsetting some macro trends [71][72] Question: Trading cards market sustainability - Management acknowledged that trading card growth is not linear but remains optimistic about long-term growth potential [88] Question: Margin recovery and operating leverage - Management emphasized that top-line growth leads to healthy margins, focusing on balancing growth and profitability [90][91]

ebay 02'25 Business & Financial Highlights July 30, 2025 © 2025 eBay | Business & Financial Highlights Q2'25 Disclosures This presentation contains non-GAAP measures relating to our performance. You can find the reconciliation of these measures, except for FI-Neutral basis, to the nearest co GAAP measures in the appendix at the end of this presentation. All growth rates represent year-sext year-sext year-sext as otherwise noted. For numbers in this presentation provided on an "FX-Neutral" basis, we calculat ...