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eBay(EBAY) - 2025 Q1 - Earnings Call Transcript
EBAYeBay(EBAY)2025-04-30 21:30
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Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew nearly 2% to approximately 18.8billion,markingthefourthconsecutivequarterofpositiveGMVgrowth[6][33]−Revenueincreasedover118.8 billion, marking the fourth consecutive quarter of positive GMV growth [6][33] - Revenue increased over 1% to 2.58 billion, with non-GAAP earnings per share growing by 10% to 1.38[6][33]−Non−GAAPoperatingincomewasreportedat1.38 [6][33] - Non-GAAP operating income was reported at 771 million, and approximately 760millionwasreturnedtoshareholdersthroughrepurchasesandcashdividends[6][33]BusinessLineDataandKeyMetricsChanges−FocuscategoryGMVgrewover6760 million was returned to shareholders through repurchases and cash dividends [6][33] Business Line Data and Key Metrics Changes - Focus category GMV grew over 6% in Q1, with collectibles being the largest contributor to growth, particularly in trading cards [9][10] - The fashion category generated over 10 billion of GMV annually, with significant improvements in customer experience and AI-powered shopping features [11][12] - Advertising revenue grew 14% in Q1, with first-party ads contributing significantly to this growth [22][39] Market Data and Key Metrics Changes - U.S. GMV grew nearly 5% in Q1, driven by focus categories, especially trading cards [34] - International GMV grew nearly 3% on an FX neutral basis, with macroeconomic conditions in international markets being weaker than in the U.S. [36] - Trailing twelve-month active buyers grew over 1% to 134 million, with spending per enthusiast buyer remaining over 3,100[37]CompanyStrategyandDevelopmentDirection−ThecompanyisfocusedonnavigatingtradepolicychangesandsupportingsellersandbuyersthroughitsSpeedpackshippingprogram[7][8]−Strategicpartnerships,suchaswithCollectorsandPSA,areenhancingthemarketplace′svalueproposition[10]−Theleadershipstructureisevolvingtoenhanceinnovationandcollaboration,withafocusonAIintegrationacrossvariousfunctions[29][30]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementacknowledgedtheuncertaintyinthemacroenvironmentbutexpressedconfidenceinthecompany′sresilienceduetoitsdiverseinventoryandsellerbase[54][100]−ThecompanyexpectsGMVforQ2tobebetween3,100 [37] Company Strategy and Development Direction - The company is focused on navigating trade policy changes and supporting sellers and buyers through its Speedpack shipping program [7][8] - Strategic partnerships, such as with Collectors and PSA, are enhancing the marketplace's value proposition [10] - The leadership structure is evolving to enhance innovation and collaboration, with a focus on AI integration across various functions [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macro environment but expressed confidence in the company's resilience due to its diverse inventory and seller base [54][100] - The company expects GMV for Q2 to be between 18.6 billion and 19.1billion,reflectingFXneutralgrowthbetweennegative119.1 billion, reflecting FX neutral growth between negative 1% and positive 2% year over year [44] - For 2025, the company anticipates low single-digit GMV growth on an FX neutral basis, driven by focus categories and geo-specific investments [47][48] Other Important Information - The company announced leadership changes, with Peggy Alford set to become the new CFO [26][28] - The company is targeting share repurchases of at least 2 billion in 2025 while maintaining flexibility for opportunistic investments [49] Q&A Session Summary Question: How to think about demand elasticity in a rising pricing environment? - Management noted that eBay's vast seller base can leverage shipping solutions to adapt to trade policy changes, and the marketplace tends to be resilient during periods of consumer pressure [54][55] Question: Impact of China tariffs on eBay's business? - Management indicated that approximately 5% of total GMV comes from the Greater China to U.S. corridor, and the company has tools to help sellers navigate tariff complexities [60][61] Question: Durability of advertising revenue amid macro changes? - Management reported strong demand for advertising, with no material impact from tariffs observed to date [67] Question: How does eBay view the concept of agentic commerce? - Management expressed confidence in the progress made with AI tools and their integration into the customer experience, enhancing efficiency and engagement [74][75] Question: Health of consumer and leading indicators? - Management characterized U.S. demand as resilient, while noting concerns in international markets, particularly in Germany and the UK [100][101]