Q1 2025 Earnings Summary
- Innovative seller tools driving liquidity: eBay’s continued investment in AI-powered listing flows and Magic Listing technology has resulted in frictionless seller experiences. This innovation has helped fuel double-digit listing growth (with over 2.3 billion listings) that further enhances marketplace liquidity and drives higher GMV.
- Resilient advertising business: eBay’s diversified ad product suite is performing strongly with over 3.7 million sellers adopting promoted listings, ensuring that advertising revenue remains robust even amid challenging macro conditions and tariff uncertainties.
- Strong momentum in key niche categories: The collectibles segment, particularly trading cards, has delivered healthy double-digit growth for nine consecutive quarters through innovations like seamless PSA integrations and eBay Live enhancements, underlining the platform’s ability to capture and sustain consumer demand in niche markets.
- Increased tariff pressures and trade policy changes could erode margins and hurt cross-border transactions, as eBay’s Greater China to U.S. trade constitutes about 5% of total GMV with significant exposure to tariff-related cost pressures .
- Weak consumer sentiment in key international markets—notably in the U.K. and Germany—could lead to lower demand, as evidenced by depressed consumer confidence, geopolitical uncertainty, and local economic headwinds .
- Risks to the advertising revenue stream may materialize if sustained high tariffs push pressure on Chinese sellers’ margins or cause some sellers to exit, thereby reducing the overall volume and diversity on the platform that fuels ad demand .
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | Increased from $2,556M (Q1 2024) to $2,585M (Q1 2025) | Marginal revenue growth resulted from slightly higher GMV driven by strategic initiatives (such as promoted listings) and incremental FX tailwinds. These factors built on the modest gains from the prior period. |
Marketplace Revenue | Declined roughly 16% from $2,556M (Q1 2024) to $2,143M (Q1 2025) | A notable decline is largely due to the reclassification of certain revenues into the Advertising category and potential reductions in GMV in the marketplace segment; this change builds on previous data where marketplace revenues had not been adjusted by such reclassification. |
Advertising Revenues | Emerged at $442M in Q1 2025 (new component) | The introduction and expansion of advertising revenue was driven by the growth of promoted listings and the reclassification of some prior Marketplace revenues, reflecting a shift in revenue composition compared to previous periods when advertising was not separately highlighted. |
U.S. Revenue | Increased from $1,302M (Q1 2024) to $1,346M (Q1 2025) | The 3% increase indicates solid domestic performance, underpinned by higher GMV and expanded promoted listings offerings, extending trends observed in earlier periods. |
U.K. Revenue | Declined about 15% from $390M (Q1 2024) to $331M (Q1 2025) | A significant decline was influenced by the impact of the U.K. managed shipping initiative and the planned buyer-facing fee for C2C listings, which together altered revenue recognition compared to the previous period. |
China Revenue | Increased approximately 8% from $275M (Q1 2024) to $297M (Q1 2025) | The growth in China revenue reflects successful international strategies and improved cross-border trade performance, building on previous incremental improvements tied to country-specific investments and favorable market dynamics. |
Net Income | Increased about 15% from $438M (Q1 2024) to $503M (Q1 2025) | Net income improvement was driven by higher net revenues, lower provisions for transaction losses, improved interest income, and reduced stock-based compensation—factors that helped reverse some underperforming aspects seen previously. |
Operating Income | Declined slightly (~2.4%) from $631M (Q1 2024) to $616M (Q1 2025) | The marginal decline in operating income is due to pressure from higher one-off expenses and reclassification adjustments that offset the revenue gains, a shift from the positive operating leverage seen in the previous period. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
GMV | Q2 2025 | no prior guidance | $18.6B to $19.1B; FX‐neutral growth between –1% and +2% | no prior guidance |
Revenue | Q2 2025 | no prior guidance | $2.59B to $2.66B; –1% to +2% FX‐neutral growth | no prior guidance |
Take Rate | Q2 2025 | no prior guidance | Expected to improve sequentially | no prior guidance |
Non‑GAAP Operating Margin | Q2 2025 | no prior guidance | 27% to 27.8% | no prior guidance |
Non‑GAAP EPS | Q2 2025 | no prior guidance | $1.24 to $1.31; YOY growth 4% to 11% | no prior guidance |
GMV Growth | FY 2025 | Expected to be low single‑digit on an FX‑neutral basis with ~1‑pt FX headwind | Expected to be low single‑digit on an FX‑neutral basis | no change |
Revenue Growth | FY 2025 | Forecasted to be modestly higher than GMV with FX creating a 40‑bp headwind | Forecasted to be modestly higher than GMV on an FX‑neutral basis | no change |
Non‑GAAP Operating Income Growth | FY 2025 | Expected to grow in line with revenue with a 50‑bp FX tailwind | Expected to be relatively in line with FX‑neutral revenue | no change |
Capital Expenditures | FY 2025 | 4% to 5% of revenue | 4% to 5% of revenue | no change |
Non‑GAAP Tax Rate | FY 2025 | 16.5% | 16.5% | no change |
Free Cash Flow | FY 2025 | Expected to be comfortably north of $2B | Expected to be comfortably north of $2B | no change |
Share Repurchases | FY 2025 | Targeting at least $2B | Targeting at least $2B | no change |
Quarterly Dividend | FY 2025 | $0.29 per share for Q1 2025 (up from $0.27 per share) | $0.29 per share for Q2 | no change |
Non‑GAAP EPS Growth | FY 2025 | Expected in the high single digits | Expected in the high single digits | no change |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Revenue | Q1 2025 | $2.52B to $2.56B | $2.585B | Beat |
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
Advertising Revenue Growth | Q2 2024 and Q4 2024 discussions highlighted consistent growth in first‐party ads, diversified ad formats (e.g., Promoted Listings General, off‑platform ads) and new capabilities to drive adoption. | Q1 2025 emphasized robust first‑party advertising growth, further diversified products (including technological optimizations and global reach) and a continued path toward higher GMV penetration. | Consistent growth and diversification remain central with incremental improvements and further global expansion initiatives. |
Technological Innovation | In Q2 2024 and Q4 2024, eBay showcased investments in AI‑powered tools, such as generative AI for listings, a redesigned ad platform, enhanced magical listing tools and AI‑first dashboards to help sellers. | Q1 2025 built on these innovations by introducing a simplified AI‑powered listing flow and expanding tools (e.g., magical bulk listing) across multiple markets, demonstrating improvements in efficiency and seller satisfaction. | Continuous emphasis on AI and tech innovations, with new enhancements expanding geographic reach and further simplifying seller workflows. |
Tariff Pressures & Trade Policy | Q4 2024 discussions focused on tariff exposures and de minimis challenges in the China‑U.S. corridor, with mentions of using SpeedPAK to manage complexities. Q2 2024 did not mention tariffs. | Q1 2025 revisited these challenges by noting increased costs and uncertainty from tariffs and trade policy changes, but also highlighted proactive mitigation measures (e.g., SpeedPak and buyer education). | Persistent concerns with a cautious tone; while not mentioned in Q2, tariff pressures reemerge in Q1 with proactive measures to mitigate their impact. |
Macroeconomic Challenges | Q2 2024 and Q4 2024 covered macroeconomic headwinds in key international markets with weak consumer confidence in the UK and Germany, noting low GDP growth and uneven demand. | In Q1 2025, the narrative remains consistent with continued uncertainty, depressed consumer sentiment in the UK and challenges in Germany (exacerbated by factors like elections and geopolitical spillovers). | Persistent external headwinds affecting core international markets, with ongoing strategic responses to manage the weak consumer sentiment. |
Marketplace Liquidity & GMV Growth | Q2 2024 reported modest GMV growth and hints of deceleration in coming quarters, while Q4 2024 showed robust GMV growth with seasonal deceleration concerns (e.g., post‑holiday slowdown, calendar headwinds). | Q1 2025 reflected a slight deceleration from Q4 2024, yet maintained positive GMV growth (around 2%) with strengths in focused categories and a resilient liquidity profile, supported by a diverse inventory mix. | Mixed dynamics persist—positive overall growth driven by focused categories but with recurring seasonal and macro‑related deceleration concerns. |
Niche Categories (Collectibles & Cards) | Q2 2024 and Q4 2024 emphasized strong performance in collectibles and trading cards with double‑digit growth, boosted by strategic partnerships (e.g., with PSA), enhanced listing tools and live events. | Q1 2025 continued the trend with robust trading cards and collectibles performance, noted as key growth drivers reinforced by integration of PSA data and ongoing innovations for hobbyists. | Sustained and strong performance with ongoing strategic partnerships and technological innovation, reinforcing their role as growth drivers across periods. |
Active & Enthusiast Buyer Metrics | Q2 2024 highlighted active buyers at 132 million with modest positive growth and stable enthusiast buyer numbers (around 16 million with healthy spend levels), while Q4 2024 reported similar metrics and sequential growth in active buyers. | Q1 2025 maintained these trends with active buyers slightly growing over 1% to 134 million and stable enthusiast numbers with slightly increased spend per enthusiast (over $3,100). | Stable and consistent buyer metrics across all periods, reflecting steady retention and minimal yet positive acquisition improvements, especially among high‑value enthusiast buyers. |
Capital Returns & Shareholder Value | Q2 2024 and Q4 2024 detailed significant share repurchases (e.g., $1B in Q2 and $900M in Q4) and dividend payments, with increasing repurchase authorizations and incremental dividend hikes. | Q1 2025 reported continued share repurchases ($625M in Q1) and dividend increases (from $0.27 to $0.29 per share) with an ongoing target of higher cumulative repurchases for 2025. | Ongoing commitment to returning capital with incremental increases in both share repurchases and dividends, reflective of a stable financial policy and positive cash flow outlook across periods. |
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China Tariffs
Q: Impact of China tariffs on U.S. GMV?
A: Management explained that roughly 5% of GMV comes from Greater China, with most already subject to tariffs—nearly 75% are forward deployed and about 50% use SpeedPak, which embeds tariffs into the checkout price, thereby mitigating potential margin pressures. -
Sourcing Risk
Q: What sourcing risks persist amid recession?
A: Management noted that U.S. sellers, even when sourcing from China, face similar tariff burdens. However, the robust mix of used and refurbished inventory helps cushion the impact during economic slowdowns. -
Demand Elasticity
Q: How resilient is buyer demand with rising prices?
A: They emphasized that during periods of uncertainty, consumers naturally gravitate toward value. eBay’s diverse seller base and focus on non-new, in-season inventory ensure steady demand despite pricing pressures. -
Advertising Impact
Q: Do tariffs affect ad revenue performance?
A: Management stated there has been no material impact from tariffs on advertising. The diversified ad portfolio continues to deliver solid, resilient performance with robust growth across multiple products. -
Collectibles Outlook
Q: How will collectibles perform during a slowdown?
A: They observed that trading cards—a core part of collectibles—have maintained healthy double-digit growth driven by sustainable increases in sold items, underscoring the strength of the category. -
M&A Strategy
Q: Will eBay pursue M&A in key categories?
A: Management reaffirmed a disciplined build, buy, and partner approach. Strategic acquisitions, such as those enhancing fashion authentication and trading card capabilities, reflect their commitment to bolstering core categories. -
Seller Acquisition
Q: Will eBay boost marketing for pre-owned seller growth?
A: They are aggressively leveraging full-funnel marketing to simplify seller onboarding—using frictionless tools like Magical Listing—to unlock dormant C2C inventory and convert buyers into sellers. -
Consumer Health
Q: What is the outlook for global consumer demand?
A: Management reported notable resilience in the U.S. market, whereas European regions like the U.K. and Germany face continued softness due to inflation and broader economic concerns. -
Listings Growth
Q: What drives the 2B+ listings this quarter?
A: The strong growth in over 2 billion listings is attributed to enhanced C2C tools—such as Magical Listing—and efforts to remove friction from the selling process, boosting active seller participation. -
Marketing Strategy
Q: Are marketing spends increasing amid economic challenges?
A: While remaining judicious, management is integrating AI into CRM and optimizing their marketing spend, ensuring healthy ROI even in a challenging macro environment. -
Agent Commerce
Q: How is agent commerce evolving on the platform?
A: They are advancing agentic tools within listing flows and customer support to streamline operations, although detailed plans remain limited at this stage.