EBay struggled ahead through its first quarter but still managed to do a bit better than financial analysts anticipate as it works to create new support for sellers.
Loss from continuing operations at eBay was $1.34 billion, or $2.28 per diluted share, versus net income from continuing operations of $568 million, or 82 cent per diluted share, in the quarter a year earlier.
Adjusted for one-time events, net income was $625 million, or $1.05 per diluted share, versus $748 million, or $1.08 per diluted share, in the year-prior period, eBay stated.
The company topped a MarketBeat-published first quarter analyst consensus estimate for adjusted diluted earnings per share by two cents and for revenues by $20 million.
eBay posted net revenues of $2.48 billion versus $2.64 billion in the year-previous quarter. Income from operations was $692 million versus $841 million in the year-before quarter.
Gross merchandise volume slipped to $19.4 billion, according to eBay, down 20% on an as-reported basis and down 17% on an foriegn exchange neutral basis versus the year-prior quarter.
In the quarter, eBay pointed out, the company launched its new digital wallet where customers can use proceeds from sales to purchase their next item or pay their selling expenses. eBay’s total advertising offerings generated first quarter revenue of $267 million, representing roughly 1.4% of GMV. It also made significant changes towards modernizing its Stores experience, eBay noted. The initiative included launching a new storefront that provides sellers with the ability to tell their stories, showcase their brands and increase trust in their businesses, the company maintained. EBay also optimized SEO for Stores to drive more free traffic, increased the Store inventory prominence and made it easier for enthusiasts to find Stores.
To further support sellers and help them grow buyer bases, eBay now more frequently encourages buyers to save sellers for future purchases. To date, this has driven a four-fold increase in the number of saved sellers, the company asserted.
EBay launched a new app messaging function to better connect sellers to their buyers, improve how sellers communicate and make managing messages easier. In addition, to reduce friction on cross-border transactions, eBay enabled a new feature to give buyers the option of paying in their local currency as well as the currency of the listing, the company reported.
“Our team has delivered another strong quarter, at the high end of our expectations,” said Jamie Iannone, eBay CEO. “Despite the current macro headwinds, we remain confident in the long-term strategy we laid out during our Investor Day in March. We are building an eBay for the future with an eye toward delivering long-term, sustainable growth. Our enthusiast buyers continue to shop and engage on eBay regularly, and our results to date demonstrate our focus category playbook is working.”