Ebay 2Q Profit, Revenue Rises As Consumers Tap Marketplace During Pandemic
July 28 2020 - 5:11PM
Dow Jones News
By Micah Maidenberg
Ebay Inc. said its second-quarter profit and revenue picked up,
reflecting stronger in the digital marketplace during the quarter
with many people stuck at home as the coronavirus spread.
Profit rose to $746 million, or $1.05 a share, from $402
million, or 46 cents a share, for the same quarter last year. Ebay
reported an adjusted profit of $1.08 a share, ahead of analysts'
forecasts by 3 cents.
Revenue rose to $2.87 billion from $2.42 billion. Analysts
expected almost $2.8 billion in revenue, according to FactSet.
Annual active buyers, or accounts that purchased something
through the company's platform within the previous 12-month period,
rose 5% in the quarter to 182 million. Gross merchandise volumes,
measuring the value of completed sales, rose 26% to $27.1 billion
in the quarter.
Ebay said its marketplace platforms have seen better results for
traffic, sold items and other key metrics due to a "shift to
e-commerce shopping resulting from the COVID-19 pandemic."
Sales categories, including home and garden, electronics and
auto parts, were among those seeing growth compared to previous
quarters, the company said.
Ebay last week said it would sell its classified-ads business to
Norway's Adevinta AS, a deal the companies said was valued at about
$9.2 billion, including $2.5 billion in cash.
Hedge fund Starboard Value LP had pressured eBay to sell the
unit, a move the investor had said would help the company better
focus on its digital marketplace.
Starboard, which as of early February owned more than 1% of eBay
shares, had nominated directors to join the company's board. In
April, the investor withdrew its board candidates after eBay agreed
to hire Jamie Iannone as chief executive.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 28, 2020 16:56 ET (20:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Apr 2024 to May 2024
eBay (NASDAQ:EBAY)
Historical Stock Chart
From May 2023 to May 2024