Financial Data and Key Metrics - Gross merchandise volume (GMV) declined 5% year-over-year, improving nearly nine points sequentially [26] - Revenue was down 2% to approximately 2.4billion,outpacingvolumebynearlyfourpoints,primarilyduetomomentumintheadvertisingbusiness[26]−Non−GAAPoperatingmarginwas28.91 per share, up 11% year-over-year [27] - Free cash flow grew 26% to 633millioninQ3[38]BusinessLinePerformance−Focuscategories,excludingtradingcards,grewoversevenpointsfasterthantherestoftheplatformcomparedtolastyear[9]−Motorspartsandaccessoriesisnearingmarketratesofgrowthduetoinvestmentsinmarketingandfitment−basedtechnologies[9][10]−TradingcardsGMVtrendsremainedsteadyatmorethandoublepre−pandemiclevels,drivenbyinnovationsliketheeBayVault[12]−Luxurycategories,includingwatches,handbags,andsneakers,sawhigherGMVgrowthduetoauthenticationservices[14]−Advertisingrevenuegrew2717.5 billion and 18.1billion,representinganFX−neutraldeclinebetween933 million through eBay for Charity and issued grants to 50 nonprofit organizations supporting inclusive entrepreneurship [20] - eBay's inaugural small business report highlighted that 95% of sellers rely on eBay for their business, with nearly one-third stating their small business would not exist without eBay [21][22] Q&A Session Summary Question: Full funnel marketing results and buyback commentary [46] - The company has shifted to full funnel marketing, driving consideration and improving performance in focus categories like parts & accessories [48] - Share buybacks remain a core component of value creation, with $3.2 billion returned to shareholders year-to-date [50] Question: Macro environment impact on Q4 guidance and future investments [52] - The Q4 guidance reflects a dynamic macro environment, with consumer demand weakening in the U.S. and Europe facing energy and labor challenges [53] - The company will continue to invest in core business areas, including advertising and payments, while managing cost efficiency [54][55] Question: Cross-category shopping impact and U.S. market trends [57] - Cross-category shopping is driving significant multiplier effects, with focus category buyers spending substantially in other categories [58] - U.S. trends in October showed broad-based weakness, but focus categories continue to outperform non-focus categories [60] Question: Cross-border activity and currency impact [62] - Cross-border trade is benefiting from easing supply chain constraints and new payment capabilities, with 70% adoption of buyer FX for cross-currency transactions [63] - Currency volatility is expected to create a headwind of three points to GMV growth and five to six points to EPS if the U.S. dollar remains strong [71] Question: Advertising growth drivers [73] - Advertising growth was driven by optimization of Promoted Listings Standard and contributions from new ad products, with double-digit quarter-over-quarter growth [74] Question: Long-term targets and M&A strategy [77] - The company remains confident in its long-term targets, with focus categories, payments, and advertising driving growth [78] - M&A will continue to be a key part of the strategy, focusing on vertical expansion and enhancing core capabilities [80] Question: Enthusiast buyer trends and advertising outlook [82] - Enthusiast buyers remain resilient, with average spend up double-digits versus 2019, though macro pressures may cause migration between buyer groups [83] - Advertising growth is expected to continue, with new products driving momentum and healthy ROAS [84] Question: Non-new-in-season goods and advertising impact on GMV [86] - Non-new-in-season goods represent about 90% of GMV, with used and refurbished goods accounting for one-third of GMV [87] - Advertising investments directly tie to GMV growth, with CPA-based programs driving incremental sales [88] Question: GMV sensitivity and used/refurbished goods performance [90] - The company's focus on non-new-in-season and refurbished goods provides resilience, with 32% of GMV from used and refurbished goods growing faster than the rest of the site [91]
eBay(EBAY)2022-11-03 01:13