Shares of eBay EBAY are up 1.40 percent following its second-quarter earnings release.
Below are some highlights and key takeaways from the company's conference call.
Growth:
• We enabled $62 billion of commerce volume in the second quarter, up
26%.
• Mobile attracted 6.6 million new buyers in Q2, and
cross-border trade was up 26%
• Revenue was up 13% in Q2, and
non-GAAP EPS was up 9%.
• eBay and PayPal both generated double digit
customer growth with PayPal surpassing more than 150 million active
registered accounts.
• As I said before, the proxy fight in Q1 gave us the chance to engage with our
largest shareholders and hear what's most important to them.
• First, they see significant value creation in our plans and
want us to execute.
• Second, they want us to aggressively pursue our announced
$5 billion share buyback.
• third, they believe that synergies make eBay
and PayPal better together for now, but they want us to continue to be open
minded to alternatives. We agree with all three points.
• We are blessed with two great businesses and will continue to aggressively
drive growth for PayPal and eBay
• PayPal had a great quarter.
• For the first half of the quarter, eBay was performing in line with our
expectations.
• In local, eBay announced plans with Argos in the UK to expand Click & Collect
to approximately 650 stores.
Data Breach:
• Then in early May, we discovered unauthorized access to our
corporate networks.
• We succinctly found that an eBay database had been
compromised. This database contained non-financial information on eBay users
including encrypted passwords.
• Buyers, representing approximately 85% of
affected volume have reset their passwords.
• But some of these buyers have not
yet returned to their previous activity levels.
• I'm proud of the way the eBay team
which is dealing with these challenges is working to get the business back on
track.
Earnings:
• eBay's commerce ecosystem continued to gain share and enabled $62
billion of volume, up 26%, at a take rate of 7.1% for the quarter.
• Revenue increased 13% and non-GAAP EPS was $0.69, up 9%.
• We generated $1.2
billion of free cash flow, and we executed $1.7 billion of our stock buyback
program and had $2.2 billion left in our authorization for further
repurchases.
• In Q2, we generated net revenues of $4.4 billion, up 13%.
• Organic revenue growth was 10% in the quarter.
• Second quarter non-GAAP EPS was $0.69, up 9%, which was driven by solid
top-line growth, good productivity
• We generated free cash flow of $1.2 billion in the quarter.
• CapEx was 6% of
revenue, lower than full-year expectations due to investment timing.
• We
continue to expect full-year CapEx to be 7% to 9% of revenue.
• We ended the quarter with cash, cash equivalents and non-equity investments
of $12.4 billion, including approximately $2.6 billion in the U.S.
Conclusion:
• We continue to leverage the power of our closed
loop transaction data to help merchants grow and deliver better experiences
for our customers.
• In summary, we faced unexpected challenges in the first half, but our teams
remain focused on execution and doing what's best for our customers, and
strong execution will continue to be our focus in the second half.
• Meanwhile,
we'll continue to invest for the long term, strengthening our core commerce
platforms and positioning our company to win
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