eBay Inc (NASDAQ: EBAY) reported its financial results for the third quarter on Wednesday that beat Wall Street estimates. Shares of the eCommerce firm, however, fell more than 5.0% in extended trading on weaker-than-expected guidance for the holiday season.
Q3 financial performance
eBay said its income printed at $283 million in Q3 that translates to 43 cents per share. In the comparable quarter of last year, it had earned $605 million or 86 cents per share. On an adjusted basis, eBay earned 90 cents per share versus the year-ago figure of 85 cents per share.
The American multinational generated $2.50 billion in revenue – an increase from last year’s $2.26 billion. According to FactSet, experts had forecast 89 cents of adjusted EPS on $2.46 billion in revenue.
Gross merchandise volume
eBay said its gross merchandise volume (GMV) of $19.5 billion topped the FactSet consensus for $19.1 billion but was down 10% compared to the same quarter last year.
Revenue from “Promoted Listings” climbed by 12% in the recent quarter, as per the earnings press release.
According to the NYSE-listed firm, over 18 million sellers have so far switched to managed payments, which made up 71% of its global on-platform volume in Q2 but jumped to more than 90% in the third quarter.
eBay had 19 million active sellers in Q3, unchanged from 2020. 154 million active buyers, however, represent a year-over-year decline of 5.0%.
For Q4, eBay forecasts up to $1.01 of adjusted EPS on $2.57 billion to $2.62 billion in revenue. In comparison, analysts are calling for $1.00 of adjusted per-share earnings on $2.65 billion in revenue.