On the morning of May 2nd, Beijing time, eBay released its financial report for the first quarter of fiscal year 2024 today: net revenue was US$2.556 billion, a year-on-year increase of 2%. Excluding the impact of exchange rate changes, it also increased by 2% year-on-year; from Net profit from continuing operations was US$439 million, a year-on-year decrease of 23%; not in accordance with US GAAP, eBay's net profit from continuing operations in the first quarter was US$648 million, a year-on-year increase of 8%.
eBay's first-quarter revenue and diluted earnings per share both exceeded Wall Street analysts' previous expectations, and its outlook for second-quarter revenue also exceeded expectations, but its stock price still fell more than 3% after hours.
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Performance Summary:
In the quarter ended March 31, eBay's net profit from continuing operations was US$439 million, compared with US$569 million in the same period last year, a year-on-year decrease of 23%; Diluted earnings per share from operating businesses was US$0.85, compared with US$1.05 per diluted share from continuing operations in the same period last year, a year-on-year decrease of 19%.
Excluding certain one-time items (not in accordance with U.S. GAAP), eBay's net profit from continuing operations in the first quarter was US$648 million, an increase of 8% compared with US$600 million in the same period last year; Diluted earnings per share from operating operations were US$1.25, an increase of 13% compared with US$1.11 in the same period last year. This performance exceeded analysts' expectations. According to data provided by Yahoo Finance Channel, 23 analysts had previously expected eBay's adjusted earnings per share to reach $1.12 in the first quarter.
eBay's first-quarter net revenue was US$2.556 billion, an increase of 2% compared with US$2.510 billion in the same period last year. Excluding the impact of exchange rate changes, it also increased by 2% year-on-year. This performance also exceeded analysts' previous expectations. Data provided by Yahoo Finance Channel showed that 23 analysts had previously expected eBay's first-quarter revenue to reach US$2.36 billion on average.
eBay's total merchandise volume (GMV) in the first quarter was US$18.623 billion, an increase of 1% compared with US$18.410 billion in the same period last year. Excluding the impact of exchange rate changes, it was basically the same year-on-year. By region, eBay's total U.S. merchandise transaction volume in the first quarter was US$8.974 billion, basically the same as US$9.010 billion in the same period last year; total international merchandise transaction volume was US$9.649 billion, an increase compared with US$9.400 billion in the same period last year. 3%.
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In the first quarter, eBay had 132 million active buyers, down 1% from 133 million in the same period last year. Excluding the GittiGidiyor and TCGplayer platforms, the number of active buyers on eBay was 131 million, which was the same as the 131 million people in the same period last year.
eBay's first-quarter net revenue cost was $700 million, which was flat compared with $700 million in the same period last year. eBay's first-quarter gross profit (calculated as net revenue minus net revenue costs) was $1.856 billion, an increase from $1.810 billion in the same period last year.
eBay's total operating expenses in the first quarter were $1.225 billion, down from $1.252 billion in the same period last year. Among them, sales and marketing expenses were US$541 million, an increase from US$511 million in the same period last year; product development expenses were US$351 million, basically the same as US$352 million in the same period last year; general and administrative expenses were US$238 billion, a decrease from US$297 million in the same period last year; trading loss provisions were US$91 million, an increase from US$84 million in the same period last year; amortization expenses for acquired intangible assets were US$4 million, This was down from $8 million in the same period last year.
eBay's first-quarter operating profit was $631 million, an increase from $558 million in the same period last year. Excluding certain one-time items (non-GAAP), eBay's adjusted operating profit in the first quarter was $774 million, an increase from $744 million in the same period last year.
eBay's first-quarter operating profit margin was 24.7%, up from 22.2% in the same period last year. Excluding certain one-time items (non-GAAP), eBay's adjusted operating margin in the first quarter was 30.3%, an increase from 29.6% in the same period last year.
eBay's effective tax rate from continuing operations in the first quarter was 18.1%, down from 22.1% in the same period last year. Excluding certain one-time items (not in accordance with U.S. GAAP), eBay's adjusted effective tax rate from continuing operations in the first quarter was 16.5%, which was unchanged from 16.5% in the same period last year.
eBay's operating cash flow from continuing operations in the first quarter was $615 million, down from $841 million in the same period last year. eBay's free cash flow in the first quarter was $472 million, down from $709 million in the same period last year.
During the first quarter, eBay repurchased a total of approximately 10 million shares of common stock for a total repurchase value of approximately $499 million. As of March 31, 2024, eBay's remaining approved repurchase shares were worth approximately $2.9 billion. In addition, eBay also distributed a cash dividend worth $139 million in the first quarter.
As of March 31, 2024, eBay held a total of $4.9 billion in cash and cash equivalents and non-equity investments.
eBay's board of directors announced that it has approved a cash dividend of $0.27 per common share, which will be paid on June 14, 2024 to shareholders of record as of May 31.
Performance Outlook:
eBay predicts that the company's net revenue in the second quarter of fiscal 2024 will reach between US$2.49 billion and US$2.54 billion, excluding the impact of exchange rate changes, a year-on-year decrease of 1% to a year-on-year increase of 1%, with an average value of 2.515 billion. dollar, this performance outlook exceeded analyst expectations. According to data provided by Yahoo Finance Channel, 22 analysts had previously expected eBay's second-quarter revenue to reach US$2.39 billion on average.
In terms of earnings outlook, eBay expects that in the second quarter of fiscal 2024, in accordance with U.S. GAAP, diluted earnings per share from continuing operations is expected to be between US$0.76 and US$0.81; not in accordance with US GAAP, from Diluted earnings per share from continuing operations are expected to be between US$1.10 and US$1.15, with an average of US$1.125, exceeding analysts' expectations. According to data provided by Yahoo Finance Channel, 22 analysts had previously expected eBay's second-quarter earnings per share to reach $1.07.
Stock price changes:
On the same day, eBay's stock price fell by US$0.48 in regular trading on Nasdaq, closing at US$51.06, a decrease of 0.93%. In the subsequent after-hours trading as of 6:08 pm Eastern Time on the 1st (6:08 am on the 2nd Beijing time), eBay's stock price fell again by US$1.54 to US$49.52, a decrease of 3.02%. In the past 52 weeks, eBay's highest price was $52.93 and its lowest price was $37.17.