eBay is having a pretty bad day
eBay is not having a nice afternoon after posting a pretty ho-hum third quarter that match roughly consistent with analyst estimates, however maybe not seeing the sorts of leaps that Wall Street is searching for heading into the fourth quarter.
The firm mentioned it added a further 2 million energetic patrons and now says it has 168 million world energetic patrons. But even with purchaser numbers as massive as that, it appears that evidently eBay should still face an uphill battle making an attempt to vary the notion that it’s a firm that was a powerhouse. Like different firms which can be battling progress, that drawback might lie on the product stage slightly than the operational or mechanical stage. eBay, for now, appears to be extra a story about a revamp because it seems to be to attract prospects from a platform the place folks can pretty a lot purchase something with a single click on and get it in two days (and in addition works with servers).
Here’s a have a look at the corporate’s energetic purchaser numbers. Note that the newest quantity excludes home energetic patrons in India following its sale of its India enterprise to Flipkart:
(You can discover the complete specifics of the earnings report, in addition to Wall Street analyst estimates, on the backside of the publish.)
There was some progress throughout the board — most items grew lower than 10% year-over-year — but it surely’s seemingly left eBay as a sort of minor progress property because it will get in contrast Amazon. But going ahead, it seems to be like the corporate’s expectations for the fourth quarter got here in decrease than what Wall Street hoped. Looking for some sort of corresponding to Amazon in a model that was a powerhouse within the early period of the buyer internet, buyers apparently are nonetheless searching for extra from the corporate.
Here’s a fast rundown of the stats on the corporate for the previous a number of quarters:
“In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years,” CEO Devin Wenig mentioned within the earnings launch. “Our prospects are responding to the vital product enhancements we’ve been making, and this is mirrored in our outcomes.”
We’ll get to the particular monetary numbers later, however clearly, eBay is not getting the sort of pleasant therapy that Amazon will get. While the corporate appears to be making an attempt to diversify past simply its market — and it seems that StubHub is a pretty vital enterprise with tons of of tens of millions of in income — it doesn’t get the identical sort of leeway to drag out a checkbook and purchase a grocery chain for $13.7 billion.
While progress on the monetary entrance is pretty tepid, eBay’s inventory has nonetheless been on a run up to now 12 months. The inventory is up round 20%, regardless of dealing with fixed stress from Amazon because it grows into a bigger and bigger behemoth. The previous few months have been a bit shakier, and clearly, as we speak didn’t assist. Here’s the inventory chart from the final 12 months (together with this afternoon’s drop shortly after the report):
Here’s the ultimate slash line for the corporate:
- Revenue: $2.four billion, versus Wall Street estimates of $2.37B
- Earnings: 48 cents per share (adjusted), versus Wall Street estimates of 48 cents per share.
- This fall income forecast: $2.58 billion and $2.62 billion
- This fall earnings forecast: $zero.57 to $zero.59 (adjusted)
- GMV: $21.7 billion
- StubHub income: $275 million
- Marketplace platforms income: $1.9 billion
Update: An eBay consultant shortly reached out to make clear that its Classifieds enterprise grew 19% year-over-year. Our story beforehand indicated that each unit grew lower than 10% year-over-year. The firm’s classifieds enterprise generated $235 million in income this quarter, or simply over 10% of its income for the quarter. We have up to date the story to replicate that most items — items except for Classifieds — grew lower than 10% year-over-year.