In the second quarter ended June 30, eBay continued reviewing its operations portfolio even as it beat a Wall Street earnings estimate.
For the second quarter, eBay posted net income from continuing operations of $403 million, or 46 cents per diluted share, as compared to $638 million, or 64 cents per diluted share, in the year-previous period.
Adjusted net income from continuing operations was $589 million, or 68 cents per diluted share, versus $533 million, or 53 cents per diluted share, in the quarter a year before. With its adjusted net income from continuing operations, eBay topped a MarketBeat-published analyst consensus estimate of 49 cents for the quarter.
Net revenue was $2.69 billion versus $2.64 billion in the year-prior quarter. Income from operations was $561 million versus $406 million in the period a year earlier.
Marketplace revenue growth was 1% on an as-reported basis and 3% on a foreign exchange rate neutral basis in the quarter year over year, while gross merchandise volume was down 5% on an as-reported basis and down 1% on a foreign exchange rate neutral basis. StubHub platforms drove revenue of $264 million, up 7% on both an as-reported and foreign exchange rate neutral basis, versus the previous-year period, and gross merchandise volume of $1.1 billion, up 5% on an as-reported basis and up 6% on a foreign exchange rate neutral basis. Classifieds platforms delivered revenue of $271 million, up 5% on an as-reported basis and up 12% on a foreign exchange rate neutral basis versus the year-before period.
“We remained focused on building our active buyer base, delivering outstanding customer experiences and accelerating our growth initiatives in the second quarter,” said Devin Wenig, eBay president and CEO. “Managed payments continues to exceed expectations, while first party advertising is providing significant benefits to sellers, and new features are making our marketplace easier to use.”
Among second quarter initiatives, eBay accelerated adoption of its new payments platform, with over 6,000 sellers opting into the program, the retailer reported. First-party advertising continued growing, eBay indicated, with 940,000 sellers leveraging first-party advertising to promote over 250 million listings, resulting in $89 million of revenue. eBay also launched new pages that transformed previously unstructured listings into a more intuitive set of product results, unveiled Brand Outlet, and broadened the simplified returns process to more customers. It announced new seller features to increase buyer conversion including Buy Again, Trending in Your Interests and an expanded Offers to Buyers. At the same time, eBay upgraded the Volume Pricing user interface to make it easier for sellers to offer volume-based discounts and for buyers to act on those discounts.
Other moves in the quarter included reaching a commercial agreement with Paytm Mall to bring eBay’s global inventory onto one of the largest marketplaces in India.