EBAY eBay Inc

By Kimberly Chin 

EBay Inc. reported better-than-expected sales in the latest quarter as the online marketplace said it benefited from homebound shoppers.

Net revenue was $2.37 billion, down 1.6% from a year earlier, but topped analysts' estimates of $2.32 billion, according to FactSet.

The company said that since mid-March, its marketplace site has seen strong key metrics, including traffic and items sold, because of shelter-in-place orders in many countries. It also saw an increase in small business sellers and said the strength has continued into April.

Meanwhile, the company's classified business, one that activist investors have pressured it to shed, was hurt by auto-dealer closures and lower traffic that has continued into April.

EBay said active buyers grew by 2% to about 174 million globally in the March quarter, its ninth consecutive quarter of gains. Gross merchandise volume, or the amount of business transacted on its platforms, fell 1.4% to $21.3 billion.

For the second quarter, the company expects revenue of $2.38 billion to $2.48 billion. Analysts were expecting $2.31 billion.

The e-commerce giant's first-quarter profit surged to $3.41 billion, or $4.51 a share from $518 million, or 57 cents a share, in the year-ago quarter. eBay's $4.1 billion deal to sell StubHub to Viagogo Entertainment Inc. closed on Feb. 13.

Excluding certain items, profit was 77 cents a share. Analysts polled by FactSet were expecting adjusted per-share earnings of 72 cents.

For the second quarter, the company expects earnings ranging from 50 cents to 57 cents a share. On an adjusted basis, it predicts earnings around 73 cents to 80 cents a share. Analysts were expecting 70 cents a share.

Earlier this month, activist investor Starboard Value LP withdrew its nominees for eBay's board after the company tapped Walmart Inc.'s chief operating officer for U.S. e-commerce, Jamie Iannone, as its new chief executive, effective this week.

EBay plans to select a new independent board director and will consider the people Starboard nominated, the company said at the time. EBay will choose that new director in the next few months.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

April 29, 2020 18:34 ET (22:34 GMT)

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