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EBay Inc. reported a decline in the number of active buyers in the last quarter and forecast lower than expected revenue for the current quarter, yet another sign of slowing e-commerce trends.
The online marketplace reported 159 million active buyers for the June quarter, down 2% from the previous year. Since the start of the Covid-19 pandemic in early 2020, active buyers had increased by a mid to high single-digit percentage each quarter.
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The company also said it expects revenue from continuing operations of $ 2.42 billion to $ 2.47 billion in the current quarter, with an organic growth rate of 6%. at 8%. Analysts polled by FactSet were expecting $ 2.49 billion.
E-commerce has seen massive growth following the onset of the pandemic early last year, as people confined to the house have turned to the internet for their shopping needs. This growth, however, has started to show signs of slowing down.
During a call with analysts, eBay chief executive Jamie Iannone said the company has seen a slowdown from the huge growth initially seen in 2020, which was due to the onset of the pandemic. The market is still experiencing positive growth compared to before the pandemic, he said.
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EBay is not providing guidance for the full year in part because of the uncertainty that persists as the pandemic continues, CFO Steve Priest said.
Amazon.com Inc. last month reported slightly lower sales than analysts expected, with CFO Brian Olsavsky saying he expects the trend to continue as the economy reopens and as sales stabilize after disproportionate growth earlier in the pandemic.
For the second quarter, eBay reported net sales of $ 2.67 billion, up from $ 2.34 billion a year earlier. According to FactSet, analysts were expecting $ 2.63 billion.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| EBAY | EBAY, INC. | 68.02 | +0.71 | +1.05% |
“The revenue growth is driven by the accelerated migration of our payments and the growth in advertising,” said Managing Director Jamie Iannone.
In July 2020, eBay’s operating agreement with its former PayPal Holdings Inc. unit ended, and since then the company has been migrating payments to its own platform.
For the second quarter, eBay reported earnings of $ 10.73 billion, up from $ 746 million a year earlier. Most of the company’s profits came from discontinued operations. Adjusted profit from continuing operations was 99 cents per share. Analysts were expecting 96 cents a share.
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At the end of June, the company announced that it was selling an approximate 80% stake in its Korean business to E-Mart Inc. The deal is expected to bring eBay about $ 3 billion in gross cash proceeds. The Korean operations were considered as discontinued operations in the last quarter.
Write to Allison Prang at [email protected]
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