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E-commerce giant eBay is optimistic going into the second quarter after logging commendable figures in its Q1 2023 outing.
On Wednesday, April 26, 2023, eBay Inc (NASDAQ: EBAY) reported its Q1 2023 earnings, which beat revenue and earnings per share (EPS) estimates. For the year’s first quarter, the multinational e-commerce company realized revenue of $2.5 billion compared to the $2.49 billion analysts expected. In addition, eBay’s recorded EPS of $1.11 also topped the consensus estimate of $1.07 for the same period.
Following its Q1 2023 performance, eBay now sees a Q2 guidance of between $2.47 billion and $2.54 billion versus analysts’ projections of $2.43 billion. In addition, the company’s increased $0.96-$1.01 EPS range for the second quarter outpaces the $0.99 EPS that Wall Street estimates.
eBay Execs Express Contentment with Q1 2023 Performance
Commenting on eBay’s first-quarter outing, the e-commerce platform’s chief executive officer Jamie Iannone said:
“I am proud of our team for delivering another strong quarter. This is a solid start to the year as we’ve exceeded expectations on our key financial and operating commitments while making significant progress against our long-term objectives.”
Iannone added that eBay experienced strength in its focus categories during the first quarter, which outpaced the rest of the marketplace once more. Furthermore, the CEO pointed out that the company’s vast data and artificial intelligence expertise combine well to accelerate platform innovation.
eBay chief financial officer Steve Priest also touched on the California-based company’s latest earnings development, stating:
“Our strategic initiatives continue to have a meaningful impact on our long-term growth trajectory. Our Q1 results demonstrate the strength and durability of our scaled, global marketplace during periods of economic uncertainty.”
In other earning categories, eBay’s reported gross merchandise volume of $18.4 billion represents a 5% drawdown on an as-reported basis. Furthermore, the latest GMV figure also marked a 2% decline on an FX-neutral basis.
The company’s Q1 GAAP and Non-GAAP operating margins came in at 22.2% and 29.6%, respectively, while it returned $384 million to shareholders. Of this return, $250 million constituted share repurchases, while the remaining $134 million was paid in cash dividends.
eBay Web3 Push
In February, eBay hinted at its expansion into the emerging Web3 space amid the struggling tech sector. At the time, the consumer-to-consumer and business-to-consumer sales facilitator announced hiring for roles related to Web3 and non-fungible tokens (NFTs). The hiring process also underscored eBay’s commitment to an Ethereum-powered digital art marketplace called KnownOrigin.io it acquired last June.
Listed roles for eBay’s decentralized initiatives were content designer, crypto counsel, tech lead, marketing campaign executive, senior engineer, and artist liaison manager. Describing KnownOrigin.io as an empowering “early Web3 pioneer”, the e-commerce platform said it was “looking for like-minded enthusiasts to join them” on this venture.
Before acquiring KnownOrigin.io, eBay rolled out its own “Genesis” NFT Collection, featuring limited-edition digital collectibles. These collectibles numbered 13 in all and came in various colors, including diamond, platinum, gold, and green-tiered NFTs.
eBay pointed out that it acquired KnownOrigin.io to expand its reach in digital collectibles.