EBay raises forecast as redesign draws customers, boosts ad revenue

By Arjun Panchadar (Reuters) - EBay Inc raised its full-year sales and profit forecasts on Tuesday, as user-friendly changes to its ecommerce platforms attracted more customers and also increased its advertising revenue.

Reuters April 24, 2019 05:05:38 IST
EBay raises forecast as redesign draws customers, boosts ad revenue

EBay raises forecast as redesign draws customers boosts ad revenue

By Arjun Panchadar

(Reuters) - EBay Inc raised its full-year sales and profit forecasts on Tuesday, as user-friendly changes to its ecommerce platforms attracted more customers and also increased its advertising revenue.

The company, facing intense competition from Amazon.com Inc and Walmart Inc, has focussed on its promoted listings programme and payments business, as well as worked to make its platform simpler to use through the introduction of grouped listings and personal recommendations.

More than 800,000 active sellers took advantage of the promoted listings in the first quarter, helping more than double advertising revenue to over $65 million, the company said.

Chief Executive Officer Devin Wenig on a post-earnings call reiterated that the company was reducing third-party ads that are not accretive and remained on track toward a $1 billion advertising revenue opportunity.

The results come as eBay is in the middle of a review of its StubHub and eBay Classifieds businesses following activist investor pressure.

The San Jose, California-based company has also agreed to appoint two new directors to its board as part of an agreement with activist investors Starboard Value and Elliott Management.

"We see the beat and raise as a positive reflection of management's efforts, prior to the involvement of the activist, to improve its operating results - including expanding its efforts in advertising and payments," said Tom Forte, an analyst with D.A. Davidson.

EBay's shares rose 5 percent in extended trading after the company also beat first-quarter revenue and profit estimates.

The company raised its full-year revenue forecast to range between $10.83 billion and $10.93 billion, and its profit to be between $2.64 per share and $2.70 per share.

Net revenue rose 2.4 percent to $2.64 billion in the first quarter ended March 31, beating analysts' average estimate of $2.58 billion, according to IBES data from Refinitiv.

EBay said active buyers grew 4 percent to 180 million in the reported quarter. However, the company's gross merchandise volume, which is the value of goods sold on its websites within a certain time frame, fell 4.2 percent to $22.59 billion.

Excluding items, eBay earned 67 cents per share, beating estimates of 63 cents per share.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash
Business

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash

(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.

Bayer settles Roundup cancer lawsuits for up to $10.9 billion
Business

Bayer settles Roundup cancer lawsuits for up to $10.9 billion

FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.

Sudan to establish trade financing fund in face of forex shortage
Business

Sudan to establish trade financing fund in face of forex shortage

KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate