eBay (EBAY) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered 1% year-over-year growth in gross merchandise volume (GMV) to $18.4 billion and revenue to $2.57 billion, with strong performance in focus categories and continued investment in AI and platform innovation.

• Non-GAAP EPS rose 15% year-over-year to $1.18, and over $1.1 billion was returned to shareholders via repurchases and dividends.

• Strategic partnerships, geo-specific initiatives, and AI-driven enhancements supported both buyer and seller engagement.

• Completed the sale of Adevinta shares for $2.4 billion in cash and $1.9 billion in Aurelia equity, reducing Adevinta exposure and creating a new equity position.

• 16 million enthusiast buyers were active in the trailing 12 months.

Financial highlights

• GMV grew 1% year-over-year to $18.4 billion; revenue increased 1% to $2.57 billion; non-GAAP operating margin expanded to 27.9%.

• Free cash flow was $278 million, impacted by timing of tax payments; operating cash flow was $367 million.

• First-party ad revenue grew 12% to $384 million; total ad revenue up 8% to $398 million.

• GAAP net income for Q2 2024 was $224 million ($0.45 per diluted share); non-GAAP net income was $602 million ($1.18 per diluted share).

• Active buyers remained flat at 132 million year-over-year.

Outlook and guidance

• Q3 2024 GMV expected between $17.8B–$18.2B (FX-neutral growth -1% to +1%); revenue forecasted at $2.5B–$2.56B (1%-3% FX-neutral growth).

• Q3 non-GAAP EPS guidance: $1.15–$1.20, up 12%-17% year-over-year; GAAP EPS expected at $0.82–$0.87.

• Full-year non-GAAP EPS growth forecast raised to 12%-14%; share repurchase target increased to at least $2.5B.

• Board declared a $0.27/share dividend for Q3 2024, payable September 13, 2024.

• FY'24 free cash flow expected just under $2B; capital expenditures expected between 4–5% of revenue.