eBay Q3 2024: Revenue, AI Innovations & Seller Tools Explained

eBay Inc. reported its third-quarter financial results for 2024 (eBay Q3 2024), achieving revenue of $2.6 billion, a 3% increase both on an as-reported and FX-neutral basis. Gross Merchandise Volume (GMV) reached $18.3 billion, growing 2% on an as-reported basis and 1% on an FX-neutral basis. GAAP and Non-GAAP earnings per diluted share were $1.29 and $1.19, respectively, with operating margins at 23.1% for GAAP and 27.2% for Non-GAAP. eBay returned $881 million to shareholders, including $750 million in share repurchases and $131 million in dividends.

CEO Jamie Iannone commented on the quarter’s success, noting strong growth across key metrics and highlighting the role of AI and geographic investments in driving business momentum. CFO Steve Priest attributed eBay’s earnings and GMV growth to strategic initiatives, emphasizing long-term investments and shareholder returns.

eBay Q3 2024 Financial Highlights

• Revenue: $2.6 billion, up 3% year-over-year.
• GMV: $18.3 billion, up 2% as-reported, 1% FX-neutral.
• GAAP Net Income: $636 million, or $1.29 per diluted share.
• Non-GAAP Net Income: $588 million, or $1.19 per diluted share.
• Operating Cash Flow: $755 million; Free Cash Flow: $646 million.
• Shareholder Returns: $881 million, including $750 million in repurchases and $131 million in dividends.

Business Highlights for eBay Q3 2024

• Advertising Platform: eBay launched a redesigned global advertising platform to improve seller advertising tools, generating $396 million in first-party advertising revenue (up 15% as-reported).
• Seller Financing: eBay expanded its Seller Capital program, partnering with Liberis to offer Business Cash Advance and Flexible Cash Advance options.
• AI-Powered Tools: The AI-driven bulk listing tool for Sports Trading Cards was launched in the U.S., enabling faster and more attractive listings.
• LiLiuM Model: eBay released the second generation of its proprietary Large Language Model series, designed to improve listing descriptions, titles, and pricing.
• Consignment Expansion: eBay extended its consignment service to include handbags in the UK, encouraging circular fashion.
• Pre-Loved Fashion Week: eBay held its first Pre-Loved Fashion Week, partnering with CFDA and BFC, allowing shoppers to purchase pre-loved fashion directly from eBay’s “Endless Runway” shows.
• Collectibles Partnership: eBay became the official collectibles partner for The Athletic, expanding its reach in the collectibles market.

Social and Environmental Impact

• The eBay Foundation awarded nearly $3 million to 31 global grantees supporting historically excluded groups.
• Through eBay for Charity, buyers and sellers contributed over $49 million globally in Q3, marking a 21% increase year-over-year.
• eBay was named on the 2024 Fortune Change the World List for its commitment to the circular economy.

Financial and Operational Summary

• GAAP Operating Margin: 23.1%, up from 18.2% in Q3 2023.
• Non-GAAP Operating Margin: 27.2%, up from 26.4% in Q3 2023.
• Cash and Cash Equivalents: $5.8 billion as of September 30, 2024.
• Remaining Share Repurchase Authorization: $1.2 billion as of September 30, 2024.

Guidance and Dividend Declaration

For Q4 2024, eBay projects revenue between $2.53 and $2.59 billion, with full-year guidance set at $10.23 to $10.29 billion. GAAP and Non-GAAP EPS for Q4 are expected to range from $0.96 to $1.01 and $1.17 to $1.22, respectively. The Board declared a cash dividend of $0.27 per share, payable on December 13, 2024.

Source: https://investors.ebayinc.com/investor-news/press-release-details/2024/eBay-Inc.-Reports-Third-Quarter-2024-Results/default.aspx