eBay Inc (NASDAQ:EBAY) shares are trading lower by around 6% after it reported Q3 FY23 earnings.
Revenue rose 5% Y/Y on reported and FX basis to $2.500 billion, marginally missing the consensus of $2.502 billion.
EBAY’s first-party advertising products posted revenue of $345 million in Q3 (+39% Y/Y on an as-reported basis and +36% Y/Y on an FX-Neutral basis) led by Promoted Listings.
Total advertising offerings generated around $366 million in revenue in Q3, representing about 2.0% of GMV.
Gross Merchandise Volume of $18.0 billion, up 2% on an as-reported basis and roughly flat on an FX-Neutral basis.
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Adjusted operating margin fell to 26.4% from 28.9% a year ago.
Adjusted EPS of $1.03 beat the consensus of $1.00.
Operating cash flow came in at $862 million, with free cash flow from continuing operations of $777 million.
As of September 30, 2023, cash and cash equivalents and non-equity investments portfolio totaled $5.4 billion.
Dividend: The Board of Directors declared a dividend per share of $0.25, payable on December 15, 2023, to stockholders of record as of December 1, 2023.
In Q3, the company repurchased $651 million of its common stock and had approximately $1.7 billion repurchase authorization remaining as of September 30, 2023.
Outlook: In Q4, EBAY expects revenue and adjusted EPS of $2.47 billion – $2.53 billion (vs. consensus of $2.45 billion) and $1.00 – $1.05 (vs. $0.99 street view).
EBAY projects revenue and adjusted EPS of $10.02 billion – $10.08 billion (vs. $9.57 billion street view) and $4.17 – $4.22 (consensus of $3.92).
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Price Action: EBAY shares are down 7.58% at $37.68 premarket on the last check Wednesday.
