eBay's first quarter report: Net revenue declined, but still confident in development

On May 4th local time , eBay released its financial report for the first quarter of fiscal year 2022. Although there was a year-on-year decline in revenue and other aspects compared with 2021, eBay said that its operating conditions in this quarter were better than expected.

The report shows that eBay's net revenue in the first quarter was US$2.483 billion, down 6% from US$2.638 billion in the same period last year, and down 5% year-on-year excluding the impact of exchange rate changes . The GAAP net loss of continuing operations was US$1.339 billion, while the net profit in the same period last year was US$568 million, turning from profit to loss year-on-year; if not in accordance with US Generally Accepted Accounting Principles ( GAAP ) , eBay's GAAP net profit of continuing operations in the first quarter was US$625 million, down 16% from US$748 million in the same period last year.

In addition, eBay's gross merchandise volume ( GMV ) in the first quarter of 2022 was $19.4 billion, down 20% from the same period in 2021 , and down 17% year-on-year excluding the impact of exchange rate changes . The company's total advertising product revenue in the first quarter was approximately $267 million, accounting for approximately 1.4% of GMV . The products in the promotion list achieved revenue of $222 million in the first quarter , down 1% year-on-year from the first quarter of 2021 , and up 2% excluding the impact of exchange rate changes . GAAP and non-GAAP operating profit margins were 27.9% and 32.4%, respectively.

It is reported that in order to alleviate the negative impact of the global economic environment and stimulate consumers' purchasing desire, eBay has launched a new digital wallet payment method . At the same time, it will cooperate with Klarna to provide invoices and installment payment methods for German buyers in the second quarter .

In the first quarter of 2022 , the GMV growth rate of sports shoes on eBay was ahead of other categories. This growth momentum was due to eBay's authenticity certification service . It is understood that in order to ensure service quality and enhance consumer loyalty to the platform, eBay has launched "authenticity guarantee service" for multiple categories, including sports shoes, watches, handbags and trading cards. Among them, luxury brand watches have achieved double-digit growth, and consumer satisfaction and trust are very high.

Some Wall Street analysts said that eBay's first-quarter performance exceeded previous expectations, but the performance outlook for the second quarter and full-year fiscal 2022 may not be as optimistic as expected .

eBay CEO Jamie Iannone said that despite the current macro " headwinds " , he remains confident in his long-term strategy aimed at achieving long-term, sustainable growth .

eBay

First quarter

Financial Report