In a surprising turn of events, online marketplace eBay has reported a profit in the second quarter, exceeding analysts’ expectations. Despite a slight decline in the company’s active buyer count, revenue saw a significant jump.
Strong Financial Performance
eBay’s profit for the quarter reached $171 million, or 32 cents a share, marking a significant improvement from the previous year’s loss of $531 million, or 95 cents a share. Adjusted earnings, excluding one-time items, stood at $1.03 a share, surpassing the anticipated 99 cents a share predicted by analysts.
Revenue Exceeds Forecasts
The company’s revenue for the second quarter stood at $2.54 billion, up from $2.42 billion in the same period last year. These figures surpassed analyst forecasts of $2.51 billion, indicating strong sales performance.
Dip in Active Buyers
While eBay experienced overall positive financial results, the number of active buyers on the platform dropped by 4% to 132 million. This decrease may be an area of concern for the company as it seeks to retain its user base.
Gross Merchandise Volume
Gross merchandise volume, representing the total value of all paid transactions on eBay’s platform, saw a slight decline of 2% for the quarter, amounting to $18.2 billion.
In conclusion, eBay’s second-quarter results indicate improved profitability and revenue growth, surpassing expectations. However, the decline in active buyers poses a challenge for the company moving forward.
