How did EBAY's Q1 2024 EPS outperform forecasts?

EBAY's Q1 2024 EPS outperformed forecasts due to several key factors:

1. Strong Revenue Growth: eBay reported a 4% year-over-year increase in net revenues, reaching $2.56 billion, which exceeded analysts' expectations of $2.51 billion. This growth was driven by a 2% rise in gross merchandise volume (GMV) to $18.6 billion.
2. Gross Margin Improvement: Despite a contraction in gross margin to 72.3% due to increased operating expenses, the company's focus on innovation and customer experience enhancements contributed to sustained profitability.
3. Operating Expenses Management: eBay effectively managed its operating expenses, which rose by 14.1% year-over-year, to support growth initiatives without compromising margins.
4. International Growth: The company's international shipping and CBT (Commerce Boosting Tools) initiatives contributed to a 7-point outperformance in focus categories, indicating strong international growth.
5. Advertising Monetization: Although monetization of advertising showed improvement, there is still room for further growth, suggesting that eBay can continue to enhance its advertising revenue stream.

In summary, eBay's Q1 2024 EPS outperformance can be attributed to robust revenue growth, efficient cost management, and strategic initiatives that boosted profitability and market position.