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October 28, 2021
eBay Keeps Rolling Through Q3
Posted In: Retail Articles

By Mike Duff

Contributing Editor

As it beat Wall Street estimates, eBay enjoyed a solid third quarter during which it advanced initiatives on promoted listings and refurbished goods.

In the quarter, eBay recorded net income from continuing operations of $283 million, or 43 cents per diluted share, versus $605 million, or 86 cents per diluted share, in the year-previous period. Adjusted to exclude one-time charges, net income from continuing operations was $591, or 90 cents per diluted share, as compared to $584 million, or 82 cents per diluted share, in the quarter a year before.

For the quarter, eBay beat a Yahoo Finance-published analyst consensus earnings per diluted share estimate of 89 cents.

Net revenues were $2.5 billion versus $2.26 billion in the year-prior quarter. Income from operations was $662 million, flat to the period a year earlier.

During the quarter, eBay expanded its advertising portfolio with the launch of Promoted Listings Advanced and Promoted Listings Express, the company pointed out. In beta, Promoted Listings Advanced is a cost-per-click service that gives sellers the ability to determine their daily budgets, choose how much a click is worth to them, then pay for each click. Additionally, Promoted Listings Express allows sellers to boost auction listings visibilit for a one-time fee regardless of whether the item is sold.

In addition, eBay noted that its Certified Refurbished products initiative is growing, with brands such as Samsung, Dyson and KitchenAid joining the program in the U.S. over the course of the third quarter. The company has rolled out a new seller refurbished function for cell phones that standardizes item condition grading, vets sellers and backs purchases with one year warranties, offering buyers more trusted products at great values, eBay asserted.

“Our team delivered another strong quarter, once again meeting or surpassing our expectations for all key business metrics, making further progress on our multi-year strategy,” said Jamie Iannone, eBay CEO, said in announcing the financial results. “Our Q3 results, driven by the near completion of our managed payments migration, expansion of our advertising portfolio and volume growth in our focus categories, demonstrate that our strategic playbook continues to work. I’m proud that we’ve been able to increase customer satisfaction, build trust, and drive steady innovation, all while continuing to set and make progress toward our ambitious goals tied to climate action.”

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