eBay Q2 Results Miss Analyst Expectations
eBay Q2 results were average with its revenue rising only 9 per cent to US$2.6bn missing analysts expectations.
During the quarter, eBay delivered GAAP net income from continuing operations of US$638m and Non-GAAP net income from continuing operations of US$533m. The company generated US$372m of operating cash flow and US$188m of free cash flow from continuing operations while also repurchasing approximately US$10bn of its common stock in the quarter.
Devin Wenig, president and CEO of eBay says, “In Q2 we continued to execute our strategy, making improvements to the core eBay experience. At the same time, we pursued significant opportunities in advertising and payments. As we look ahead to the second half of 2018, we expect acceleration in our core business and continued strong growth in earnings.”
According to Reuters, EBay lowered its full-year revenue forecast to between $10.75 billion and $10.85 billion, from $10.9 billion to $11.1 billion earlier. Analysts were expecting revenue of $10.95 billion.
eBay has been working overtime to compete with Amazon globally and especially in Australia through launching eBay Plus, eBay’s membership shopping program that gives members in Australia free delivery and returns on 15 million products, and Guaranteed Delivery, which provides the ability to search and filter items by delivery speed.
With Amazon Prime Day happening this week eBay also held its own tech sale with 20 per cent off tech for non-members and 25 per cent for eBay Plus members.
The company also announced its intent to sell its holdings in Flipkart, which will represent gross proceeds of approximately US$1.1bn. Following the close of the transaction, eBay will end its current strategic relationship with Flipkart.
For its third quarter eBay predicts sales to be between US$2.64bn – $2.68bn with analysts predicting US$2.73bn.