eBay 2025 Q1 Earnings Strong Performance as Net Income Rises 14.8%

eBay (EBAY) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. eBay's results exceeded expectations, with revenue reaching $2.58 billion, slightly above the prior year's $2.56 billion. The company's net income saw a significant increase of 14.8% to $503 million, driven by a 27.1% rise in EPS to $1.08. The company also adjusted its guidance, forecasting revenue for Q2 between $2.59 billion and $2.66 billion, indicating a potential growth range of -1% to 2%.

Revenue

Earnings/Net Income
eBay's EPS rose 27.1% to $1.08 in 2025 Q1 from $0.85 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $503 million in 2025 Q1, marking 14.8% growth from $438 million in 2024 Q1. This reflects a robust earnings performance.

Price Action
The stock price of ebay has edged up 2.67% during the latest trading day, has edged up 2.30% during the most recent full trading week, and has edged up 1.49% month-to-date.

Post-Earnings Price Action Review
The analysis of eBay's stock price movements following earnings reports indicates a positive correlation between earnings beats and stock price appreciation. Historical data reveals that eBay's stock price tends to perform well shortly after surpassing revenue, net income, and EPS expectations. Specifically, the stock demonstrated a 75% win rate over three days and a 60% win rate over ten days following revenue beats, net income beats, and EPS beats. This suggests a strong likelihood of short-term price increases following such earnings outperformance. The highest observed return was 5.10% over 30 days, indicating that while immediate reactions are favorable, long-term gains are more modest. Among these metrics, EPS beats are particularly influential in driving significant long-term stock price gains.

CEO Commentary
Jamie Iannone - President and Chief Executive Officer: "We started off 2025 on a strong note as our Q1 results came in ahead of expectations across all key financial metrics. Our gross merchandise volume grew by nearly 2% to approximately $18.8 billion, marking our fourth consecutive quarter of positive GMV growth. While our business is not immune to increased costs, our dynamic global supply and demand is an advantage in this environment. We are focused on helping sellers and buyers navigate trade policy changes, and we continue to innovate in our focused categories, particularly collectibles and fashion, where we see significant growth opportunities."

Guidance
We expect GMV between $18.6 billion and $19.1 billion for Q2, representing FX-neutral growth between negative 1% and positive 2%. Revenue is forecasted between $2.59 billion and $2.66 billion, implying negative 1% to positive 2% growth. For the full year, we anticipate low single-digit GMV growth on an FX-neutral basis, with revenue growth modestly higher than GMV. Non-GAAP EPS is expected between $1.24 and $1.31 for Q2, representing year-over-year growth between 4% and 11%.

Additional News
In recent weeks, eBay has been active in expanding its strategic partnerships and enhancing its platform capabilities. The company announced the acquisition of Caramel, an innovative online automotive transaction solution provider, aiming to improve trust and safety across its platform. Furthermore, eBay partnered with Meta to integrate eBay listings on Facebook Marketplace in the U.S., Germany, and France, providing sellers with broader visibility. Additionally, eBay's collaboration with OpenAI on its AI agent, Operator, continues to evolve, enhancing the virtual assistant's ability to autonomously perform tasks, including online shopping, thereby expanding seller reach and improving user experience. These initiatives highlight eBay's commitment to leveraging technology for growth and enhancing its market position.

Ask Aime: "EBAY Stock Edge Up After Earnings Beat"