eBay misses Q3 targets, year over year revenue climbs

eBay delivered better-than-expected third quarter financial results on Wednesday. The San Jose, Calif.-based e-commerce company reported third quarter net income of $621 million, or 88 cents per share. Non-GAAP earnings were 85 cents per share on revenue of $2.6 billion, up 25% from the same period last year.

Wall Street was looking for earnings of 76 cents per share on revenue of $2.48 billion.

In its financial release Wednesday, eBay said GMV was up 22% year over year to $25 billion. Elsewhere, eBay said it grew annual active buyers by 5% across its platforms, for a total of 183 million.

eBay’s classifieds business was sold to Norway-based Adevinta earlier this year for $9.4 billion, and the company said Wednesday that it’s on track to complete the transfer of the business by Q1 2021.  

Meanwhile, eBay said its managed payments business has 340,000 sellers currently enabled, with over 20% of on-platform payment volume being processed through the system. eBay’s revenue from promoted listings came to $186 million, up 77%.

In terms of guidance, eBay said it expects revenue between $2.64 billion and $2.71 billion and adjusted profit between 78 cents to 84 cents per share for the current quarter. Analysts are looking for Q4 revenue of $2.78 billion and EPS of 88 cents. 

For the full year 2020, the company now expects net revenue between $10.04 billion and $10.11 billion, with EPS between $3.34 and $3.40. Wall Street expects eBay to report fiscal year revenue of $10.71 billion and earnings of $3.58 per share.

Shares of eBay were down around 2% after hours.

Correction: An earlier version of this story reported that eBay missed earnings and revenue expectations. The author was citing outdated FactSet numbers.

Article source: https://www.zdnet.com/article/ebay-misses-q3-targets-year-over-year-revenue-climbs/#ftag=RSSbaffb68