eBay posts solid results for first quarter
Ecommerce powerhouse eBay posted first quarter results for 2017 last week, demonstrating solid growth throughout the first three months of the year. Accelerating growth in active buyers on its platform let the company beat its own guidance, and signs point to a successful business restructuring in the kind of timeframes the company predicted. However, eBay kept its guidance for the rest of the year unchanged, which frustrated some investors.
Even after being punished for its unchanged guidance, eBay’s share price is up by more than 8% so far this year
SOURCE: Yahoo Finance
eBay reported revenue of $2.217 billion, exceeding its guidance of up to $2.21 billion by a hair’s breadth. This was 5% up 3.7% against the same period in 2016. Earnings per share rose by 4.3% - also from the year-ago quarter – to $0.49¢.
In one of the most important drivers of eBay’s growth, the company managed to add 2 million active buyers to its platform over the quarter, bringing its total number to 169 million.
eBay’s ticket exchange service, Stubhub GMV, outperformed in 1Q2017, delivering 18% revenue growth to $210 million. This growth was due, in part, to the well-managed acquisition of Ticketbis from last summer; and in part, to strength in international markets.
eBay CEO Devin Wenig said:
"The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business. We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages, and market a sharpened eBay brand globally."
Dominion holds eBay in its Global Trends Ecommerce Fund.
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