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US' eBay projects flat-2% growth in Q2 as AI & ads power Q1 2025 gains

03 May '25

2 min read

US' eBay projects flat-2% growth in Q2 as AI & ads power Q1 2025 gains

Pic: Michael Vi / Shutterstock.com

Insights

American e-commerce giant eBay has reported revenues of $2.6 billion in Q1 2025, and $18.8 billion in GMV, both up 2 per cent FX-neutral.
Net income reached $505 million (GAAP) and $657 million (non-GAAP).
Strategic highlights included AI-powered listing, expanded ad revenue, OpenAI collaboration, and Meta partnership.
For Q2, eBay forecasts flat to 2 per cent FX-neutral growth.

American e-commerce company eBay has issued its business outlook for the second quarter (Q2) of 2025, projecting revenue between $2.59 billion and $2.66 billion, representing a foreign exchange-neutral year-over-year (YoY) growth of between negative 1 per cent and positive 2 per cent.

The company expects gross merchandise volume (GMV) to range from $18.6 billion to $19.1 billion, also reflecting an FX-neutral YoY growth of between negative 1 per cent and 2 per cent. Diluted GAAP earnings per share (EPS) are anticipated to be between $0.87 and $0.94, while diluted non-GAAP EPS is forecast in the range of $1.24 to $1.31.

In the first quarter (Q1) of 2025, eBay reported revenue of $2.6 billion, YoY increase of 1 per cent on an as-reported basis and 2 per cent growth on a foreign exchange-neutral basis. Gross merchandise volume (GMV) reached $18.8 billion, also up 1 per cent as reported and 2 per cent FX-neutral, the company said in a media release.

The company posted GAAP net income from continuing operations of $505 million, or $1.06 per diluted share, while non-GAAP net income stood at $657 million, or $1.38 per diluted share. GAAP and non-GAAP operating margins were 23.8 per cent and 29.8 per cent, respectively.

eBay generated $787 million in operating cash flow and $644 million in free cash flow during the quarter. It returned a total of $759 million to shareholders, including $625 million in share repurchases and $134 million in cash dividends.

In Q1 2025, eBay worked towards enhancing user experience, trust, and global reach. The company launched a simplified, AI-powered listing flow for consumer-to-consumer sellers in the US, UK and Germany, streamlining the listing process through its advanced ‘magical listing’ technology, the release added.

Advertising remained a strong revenue driver, generating $442 million, or 2.4 per cent of GMV, with first-party ad revenue rising 13 per cent YoY. eBay also advanced its AI capabilities through a collaboration with OpenAI to develop operator, a virtual assistant for online shopping.

Additionally, a new partnership with Meta enables eBay listings to be featured on Facebook marketplace in US, Germany and France, expanding seller visibility and access to a wider customer base.

Fibre2Fashion News Desk (SG)

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