eBay(US:EBAY)2025-10-29 22:32Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew 8% to $20.1 billion, with revenue increasing over 8% to $2.82 billion, and non-GAAP earnings per share rising over 14% year-over-year to $1.36 [5][27] - Non-GAAP operating income grew 9% year-over-year to $764 million, with a non-GAAP operating margin of 27.1% [27][32] - Free cash flow generated was $803 million, with cash and non-equity investments totaling $5.3 billion and gross debt at $6.8 billion [32] Business Line Data and Key Metrics Changes - Focus categories GMV growth accelerated to over 15%, with collectibles being the largest contributor, particularly in collectible card games and sports trading cards [5][7] - Motors Parts and Accessories (P&A) contributed significantly to GMV growth, with over 750 million live listings [9] - Fashion categories, including luxury and pre-loved apparel, also drove GMV growth, supported by partnerships like the one with Marks & Spencer [10] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to nearly 13%, while international GMV grew nearly 4% on an FX-neutral basis [28][29] - The UK C2C initiative saw notable improvements, contributing to overall acceleration in UK volume growth [29][14] - The removal of the de minimis exemption for imports under $800 created challenges for cross-border trade into the U.S., impacting growth [22][28] Company Strategy and Development Direction - The company is focused on enhancing its marketplace through innovations like eBay Live and AI-driven tools to improve user experience [12][25] - The acquisition of TIES aims to strengthen the company's position in the circular economy and expand its presence in the Nordics [15] - Continued investment in AI technologies is expected to transform the shopping experience and improve seller interactions [16][25] Management Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges but expressed confidence in the company's growth strategy and the resilience of its marketplace [5][24] - The company anticipates a modest deceleration in GMV growth in Q4 due to various headwinds, including the full impact of the de minimis change [33][34] - For 2026, the company plans for continued positive FX-neutral GMV and revenue growth, while being mindful of potential lapping dynamics [37][38] Other Important Information - The company returned approximately $760 million to shareholders through repurchases and cash dividends [27] - Non-GAAP gross margin was 71.6%, with total advertising revenue reaching $525 million, representing GMV penetration of 2.6% [30][31] - The company is committed to maintaining a strong culture and has received recognition for its workplace environment [24] Q&A Session Summary Question: Insights on AI's impact on eBay's business - Management highlighted AI's potential to unlock supply for consumers and enhance user experience through improved recommendations and search capabilities [44][46] Question: Margins and investment strategies - Management discussed balancing long-term growth with margin flow-through, noting increased product development expenses aimed at strategic initiatives [50][52] Question: Sustainability of growth in trading cards - Management expressed confidence in the long-term growth of trading cards, attributing recent success to trust and innovation in the category [71]