eBay Inc. Reports Third Quarter 2023 Results

• Revenue of $2.5 billion, up 5% on an as-reported basis and up 5% on an FX-Neutral basis
• Gross Merchandise Volume of $18.0 billion, up 2% on an as-reported basis and roughly flat on an FX-Neutral basis
• GAAP and Non-GAAP earnings per diluted share of $2.46 and $1.03, respectively, on a continuing operations basis
• GAAP and Non-GAAP operating margin of 18.2% and 26.4%, respectively
• Returned $783 million to shareholders in Q3, including $651 million of share repurchases and $132 million paid in cash dividends

SAN JOSE, Calif., Nov. 7, 2023 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter ended September 30, 2023.

“We delivered another quarter of solid results, and have accelerated the pace of innovation across eBay,” said Jamie Iannone, Chief Executive Officer at eBay. “The strategic investments in our marketplace and the team’s strong execution are driving increased customer satisfaction, especially in focus categories. In the face of macroeconomic uncertainty, we continue to make meaningful progress against our ambitious vision to reinvent the future of ecommerce for enthusiasts.” 

“In Q3, we met or exceeded expectations across all of our key financial metrics,” said Steve Priest, Chief Financial Officer at eBay. “Our strong balance sheet and operational rigor enable us to adapt to the evolving changes in this dynamic macro environment. We will continue to be prudent with cost efficiencies, saving to invest for the future, while remaining good stewards of capital for our shareholders. I’m proud of our teams for laying the groundwork for long-term, sustainable growth.”

Third Quarter Financial Highlights

• Revenue was $2.5 billion, up 5% on an as-reported basis and up 5% on a foreign exchange (FX) neutral basis.
• Gross Merchandise Volume (GMV) was $18.0 billion, up 2% on an as-reported basis and roughly flat on an FX-Neutral basis.
• GAAP net income from continuing operations was $1.3 billion, or $2.46 per diluted share.
• Non-GAAP net income from continuing operations was $545 million, or $1.03 per diluted share.
• GAAP and Non-GAAP operating margin was 18.2% and 26.4%, respectively.
• Generated $862 million of operating cash flow and $777 million of free cash flow from continuing operations.
• Returned $783 million to shareholders, including $651 million of share repurchases and $132 million paid in cash dividends.

Business Highlights

Revenue Initiatives

• eBay’s first-party advertising products, primarily driven by Promoted Listings, delivered $345 million of revenue in the third quarter, up 39% on an as-reported basis and up 36% on an FX-Neutral basis.
• The company’s total advertising offerings generated approximately $366 million in revenue in the third quarter, representing roughly 2.0% of GMV.

Strategic Initiatives

• Following the success of the eBay Guaranteed Fit program in the U.S., the company launched similar programs in the U.K. and Germany, enabling tens of millions of Motors Parts & Accessories shoppers to buy auto parts with confidence.
• eBay Motors partnered with several renowned car builders to produce over 70 pieces of content for @eBay’s TikTok channel, building awareness of eBay Guaranteed Fit and engaging with the #CarTok community.
• The company introduced a new consignment service, which gives users direct access to expert sellers who will list and sell their luxury items on their behalf. Launching initially for designer handbags, the service is expected to expand next year to include additional luxury categories, including jewelry and watches.
• eBay expanded Authenticity Guarantee for fine jewelry to the U.K. and hosted The Authenticity Lab, a first-of-its-kind multi-sensory experience for sneakerheads in London.
• During the quarter, eBay authenticated its millionth trading card: a Magic: The Gathering All Hallow’s Eve (Legends) card.
• eBay also expanded its vault offering for collectors with a new submission service for trading cards, which allows collectors to submit graded trading cards valued at $250+ from their personal collections directly to the eBay vault, regardless of where they were purchased.
• eBay launched the first phase of its magical listing experience to all mobile app users in the U.S., U.K. and Germany, enabling sellers to use generative AI (GenAI) to instantly populate item descriptions.
• The company also launched two GenAI features in the eBay Motors app, providing upgrade recommendations and engine code lookup for a more personalized shopping experience.
• eBay and self-professed “Air Fryer King” Nathan Anthony opened the U.K.’s first air fryer restaurant in Shoreditch, offering a 12-plate tasting menu of dishes cooked using only refurbished air…