eBay rallies after sliding past Q1 estimates, setting guidance above expectations
Justin Sullivan
eBay (NASDAQ:EBAY) reported gross merchandising volume fell 5% Y/Y in Q1 to $18.4B vs. the guidance range of $18.0B to $18.3B and the consensus mark of $18.2B. GMV was down 2% on a FX-neutral basis.
Active buyers declined by 7% year-over-year and 0.7% quarter-over-quarter to 133M global active buyers.
The company generated $841M of operating cash flow and $709M of free cash flow from continuing operations in Q1.
Non-GAAP operating margin fell to 29.6% of sales from 32.4% a year ago.
On the buyback front, the company repurchased approximately $250M worth of common stock in Q1. The company's total repurchase authorization remaining as of March 31 was $2.6B. The company's cash position at the end of the quarter totaled $5.0B.
CEO update: "We saw strength in our focus categories, which once again outpaced the rest of the marketplace. And the combination of eBay's vast data and AI expertise are accelerating innovation on the platform."
Looking ahead, eBay sees Q2 organic FX-neutral growth of $2.47B to $2.54B vs. $2.43B consensus. Q2 EPS of $0.96 to $1.01 is anticipated vs. $0.99 consensus.
The company has a conference call scheduled for 5:00 p.m. ET.
Shares of eBay (EBAY) rallied 5.09% in postmarket trading to $45.57.
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