On July 31, 2024, eBay Inc (EBAY, Financial) released its 8-K filing for the second quarter of 2024. eBay Inc, a global commerce leader, connects millions of buyers and sellers worldwide. The company operates one of the largest e-commerce marketplaces, generating revenue from listing fees, advertising, revenue-sharing arrangements, and managed payments. In 2023, eBay's gross merchandise volume (GMV) was $73 billion, making it a top 10 global e-commerce company.
Performance Overview
eBay Inc reported revenue of $2.6 billion for Q2 2024, up 1% on an as-reported basis and 2% on an FX-neutral basis. The company's GMV was $18.4 billion, also up 1% on both an as-reported and FX-neutral basis. GAAP earnings per diluted share were $0.45, while non-GAAP earnings per diluted share were $1.18. The company achieved a GAAP operating margin of 21.3% and a non-GAAP operating margin of 27.9%.
Financial Achievements
eBay Inc's financial achievements for Q2 2024 include:
- Revenue of $2.6 billion, surpassing the analyst estimate of $2.53 billion.
- GAAP net income from continuing operations of $226 million, or $0.45 per diluted share.
- Non-GAAP net income from continuing operations of $602 million, or $1.18 per diluted share, exceeding the analyst estimate of $1.11 per share.
- Generated $367 million of operating cash flow and $278 million of free cash flow.
- Returned $1.1 billion to stockholders, including $1.0 billion of share repurchases and $135 million paid in cash dividends.
Income Statement Highlights
| Second Quarter | 2024 | 2023 | Change |
|---|---|---|---|
| Net revenues | $2,572 million | $2,540 million | 1% |
| GAAP Net income | $226 million | $172 million | 31% |
| GAAP EPS | $0.45 | $0.32 | 39% |
| Non-GAAP Net income | $602 million | $555 million | 8% |
| Non-GAAP EPS | $1.18 | $1.03 | 15% |
Balance Sheet and Cash Flow
As of June 30, 2024, eBay Inc had cash and cash equivalents totaling $1.96 billion, with short-term investments of $3.20 billion. The company generated $367 million of operating cash flow and $278 million of free cash flow during the quarter. eBay Inc repurchased $1.0 billion of its common stock and paid $135 million in cash dividends.
Business Highlights
eBay Inc made several strategic moves in Q2 2024, including:
- Acquisition of Goldin from Collectors and a commercial agreement for streamlined grading, storage, and selling experiences.
- Enabled Venmo as an additional payment method, enhancing flexibility for U.S. buyers.
- Expanded the eBay Refurbished program to include refurbished golf clubs.
- Launched sustainability collaboration with Seagate for factory recertified hard drives.
- Introduced AI-powered features like Shop the look and background enhancement tools for fashion buyers and sellers.
Analysis
eBay Inc's Q2 2024 results demonstrate the company's ability to achieve sustainable, long-term growth despite challenges in discretionary demand. The company's strategic initiatives and new AI capabilities have driven innovation and improved the customer experience. The positive year-over-year GMV growth and strong financial metrics indicate eBay Inc's resilience and potential for continued success in the competitive e-commerce market.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from eBay Inc for further details.
