EBay forecasts upbeat quarterly revenue as high-value categories drive momentum

EBay forecast third-quarter revenue above Wall Street estimates on Wednesday, ​leaning on its push into ​authenticated luxury goods, collectibles and refurbished products to bring more ​high-value buyers to its online marketplace.

The results are the first since the company rebuffed GameStop's about $56 billion unsolicited bid as "neither credible nor attractive". GameStop CEO Ryan Cohen has, however, said he plans ‌to continue ⁠pursuing a ⁠combination.


EBay has doubled down on its "focus categories", targeting enthusiast buyers who value selection and specialist services, ​a strategy that sets it apart from rivals.

The $1.4 billion acquisition of fashion resale platform Depop ​is also providing a lift, expanding the company's reach among younger consumers and strengthening its position in the growing re-commerce market.

"Focus categories, consumer-to-consumer and re-commerce, each grew ​20% on the platform individually and collectively, representing 70% ⁠of gross ‌merchandise volume," CEO Jamie Iannone said in an interview with ​Reuters.

The company ​forecast third-quarter revenue to be between $3.07 billion and $3.12 billion, compared ⁠with analysts' estimate of $2.97 billion.

The online retailer's shares, up more ​than 25% this year, were trading 1% higher after the ​bell.

BROAD-BASED GAINS

Second-quarter revenue rose 15% to $3.13 billion, beating analysts' average estimate of $3.02 billion, according to data compiled by LSEG.

The results reflect strength that was "broad-based" with focus categories such as collectibles, motors, fashion and refurbished all contributing to growth, Chief Financial Officer Peggy Alford said during a post-earnings call.

Gross merchandise volume, a key ‌industry metric measuring the total value of all goods sold on the platform, rose 15% to $22.4 billion for the three months ended ​June 30.

The Depop ​deal, which closed on ⁠July 30, has helped eBay unlock "new supply and new demand for the marketplace that had not been there before," Iannone said.

For the third quarter, eBay expects GMV ​growth to be between 10% and 12%, including 2.5 points of contribution from Depop, he said.

Including the Depop acquisition, eBay expects annual revenue growth of 11% to 12% on a foreign exchange-neutral basis, up from the 7% to 7.5% range it had projected in April, pending the deal's close.