Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$40.77Last close (Nov 7, 2023)
Post-Earnings Price$37.28Open (Nov 8, 2023)
Price Change
$-3.49(-8.56%)
- eBay's focus on used and refurbished goods is resonating with consumers, with its refurbished business up double digits and used goods growing faster than new goods as customers seek value in an inflationary environment.
- Investments in seller services like advertising, shipping, and payments are enhancing the customer value proposition, leading to growth in live listings and seller satisfaction; eBay is also leveraging AI for operational efficiency, aiming to grow expenses more slowly than revenue next year while improving operating margins.
- Trust initiatives, such as authentication programs, are driving high customer satisfaction, increasing cross-category shopping, and providing a strong return on investment, contributing to sales growth.
- Significant macroeconomic challenges in key markets: eBay is experiencing considerable declines in e-commerce growth in its second and third largest markets. The UK was shrinking by 3% in September, and Germany was down 7%, leading to a precipitous decline in these markets. This negatively impacts eBay's Gross Merchandise Volume (GMV) and overall performance. , ,
- Softening consumer demand and muted holiday expectations: eBay observed softening consumer demand in September and October, not only in Europe but also in the U.S. This softness is expected to lead to a more muted holiday period, affecting potential revenue and growth in the near term. , ,
- Uncertainty about future growth strategies and reluctance to provide guidance: Management is hesitant to provide specific details about plans for 2024, indicating uncertainty about future growth prospects and the effectiveness of current strategies to counteract macroeconomic pressures. , ,