eBay, Inc. (NASDAQ: EBAY) on Thursday reported second quarter revenue that exceeded analysts’ expectations thanks to a more user-friendly platform in addition to growth in the Company’s advertising and payments businesses. eBay’s better-than-expected performance sent its stock price up as much as 7.5% Friday morning.
Sales for the period rose nearly 2% to USD 2.69 Billion, a slight beat versus consensus estimates of USD 2.68 Billion. On an adjusted basis, the Company earned USD 0.68 per share, topping expectations of USD 0.62 cents.
"We remained focused on building our active buyer base, delivering outstanding customer experiences, and accelerating our growth initiatives in the second quarter,” said Devin Wenig, President and CEO of eBay. "Managed payments continues to exceed expectations, while first party advertising is providing significant benefits to sellers, and new features are making our marketplace easier to use.” eBay grew its number of active buyers by 4% across its platforms, for a total of 182 million buyers globally.
The e-commerce company said it made a couple notable moves to strengthen its business over the last several weeks. First, it reached a commercial agreement with Paytm Mall to bring eBay’s global inventory onto one of the largest marketplaces in India. Second, eBay reached a deal to sell its flash sale German business brands4friends. In addition, the Company said it is “actively reviewing the role and value of StubHub” in its portfolio. eBay bought the online ticket exchange company in 2007 for USD 310 Million.
For the third quarter, eBay said it expects revenue to be in the range of USD 2.61 Billion and USD 2.66 Billion. This represents a growth rate of between 2% and 3%, up from the initial predicted range of 0% to 2%. Adjusted earnings should fall between USD 0.40 and USD 0.44.