Key facts
- EBay's second-quarter revenue increased by 15% to $3.13 billion, surpassing analyst expectations.
- The company's strategy of focusing on authenticated luxury goods, collectibles, and refurbished products is driving growth.
- The acquisition of fashion resale platform Depop is contributing to increased revenue and expanding reach to younger consumers.
- EBay forecasts third-quarter revenue to be between $3.07 billion and $3.12 billion, exceeding the consensus estimate of $2.97 billion.
EBay forecast third-quarter revenue above Wall Street estimates, driven by its strategy to attract high-value buyers through authenticated luxury goods, collectibles, and refurbished products. The company reported that its second-quarter revenue rose 15% to $3.13 billion, exceeding analysts' expectations. This growth was supported by its focus categories and the acquisition of fashion resale platform Depop.
CEO Jamie Iannone highlighted that focus categories, consumer-to-consumer, and re-commerce each grew 20% individually and collectively represent 70% of gross merchandise volume. The acquisition of Depop, which closed on July 30, is expected to contribute 2.5 points to the projected 10% to 12% gross merchandise volume growth in the third quarter. EBay now anticipates annual revenue growth of 11% to 12% on a foreign exchange-neutral basis, an increase from its previous projection.
EBay's second-quarter results were described as broad-based, with contributions from collectibles, motors, fashion, and refurbished items. The company's shares, which have risen more than 25% this year, saw a 1% increase in after-hours trading following the announcement. The company had previously rebuffed an unsolicited bid from GameStop CEO Ryan Cohen.