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 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. GMV growth accelerated to nearly 13%, while international GMV grew nearly 4% on an FX-neutral basis [28] - The U.K. C2C initiative saw notable improvements, contributing to overall volume growth [29] - Cross-border trade faced challenges due to the removal of the de minimis exemption, impacting year-over-year volume growth [28][29] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance the selling experience and improve buyer engagement through features like Magical Listing and AI shopping agents [16][25] - Expansion into live commerce through eBay Live is seen as a strategic growth vector, with significant momentum in the U.S. and plans for further expansion in Europe [12][25] - The acquisition of Tise aims to strengthen the company's position in the circular economy and enhance its presence in the Nordics [15] Management's 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 outlook for Q4 includes expected GMV between $20.5 billion and $20.9 billion, reflecting durable growth trends [33] - Management highlighted the importance of balancing top-line growth with margin flow-through, indicating ongoing investments in strategic initiatives [52][41] 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 a slight decline attributed to managed shipping and traffic acquisition costs [31] - The company plans to repurchase approximately $2.5 billion of shares for the full year [36] Q&A Session Summary Question: Insights on AI's impact on eBay's business - Management discussed the potential of AI to unlock supply for consumers and enhance the shopping experience through improved recommendations and discovery [44][46] Question: Margins and investment strategies - Management elaborated on balancing long-term growth with margin flow-through, noting increased product development expenses and strategic investments [50][52] Question: Sustainability of growth in trading cards - Management expressed confidence in the long-term growth of trading cards, driven by trust and innovation, while acknowledging that growth may not be linear [71]