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What is eBay's gross profit margin?

- **Q3 Growth Drivers**: 8% GMV growth driven by 15%+ focus category expansion (collectibles, motor parts, fashion). eBay Live GMV up 5x YoY, AI tools boost seller efficiency.
- **Strategic Wins**: Tise acquisition strengthens circular economy; U.K. C2C GMV growth accelerates with managed shipping. Vehicles business (Caramel) sees 200%+ GMV growth.
- **Financial Resilience**: Non-GAAP EPS up 14% to $1.36, free cash flow $803M. Q4 guidance: GMV $20.5-20.9B, revenue $2.83-2.89B.
- **2026 Outlook**: 3-4% GMV growth with narrowing gap to revenue due to vehicles and eBay Live. $2.5B+ capital returns planned.

**【CEO Summary Section】**
- **Q3 Performance Highlights**: GMV grew 8% to $20.1 billion, revenue rose 8% to $2.82 billion, and non-GAAP EPS increased 14% to $1.36. Focus categories (collectibles, motor parts, fashion) drove 15% GMV growth, with collectibles leading at 100%+ YoY growth in Pokémon and trading cards.
- **Innovation & Expansion**: eBay Live GMV run rate up 5x YoY, expanded to U.K. with 20,000-viewer events. AI tools like magical listings and AI shopping agents improved seller efficiency and buyer experience. Acquired Tise for Nordic pre-loved fashion market.
- **Strategic Initiatives**: U.K. C2C GMV growth accelerated with managed shipping; vehicles business (Caramel) saw 200%+ GMV growth, leveraging end-to-end services for collectible cars.

**【CFO Financial Commentary】**
- **Q3 Financials**: Non-GAAP operating income up 9% to $764M, free cash flow $803M. First-party ad revenue grew 23% to $496M, offsetting headwinds from trade policy (de minimis exemption removal) and lower cross-border volume.
- **Q4 Outlook**: GMV $20.5-20.9B (4-6% YoY), revenue $2.83-2.89B (8-10% YoY). Expect 10-15% GMV growth in 2026, with narrowing gap between GMV and revenue growth due to vehicles and eBay Live lower take rates.
- **Capital Allocation**: $2.5B share buybacks planned for 2025, targeting 90-100% of free cash flow for returns in 2026.

**【Q&A Key Highlights】**
- **AI Impact**: CEO emphasizes AI as growth driver, with eBay Live and vehicles benefiting from agentic commerce. CFO notes reinvestment in strategic initiatives (e.g., shipping solutions) to balance top/bottom line growth.
- **Trading Cards Sustainability**: Jamie highlights long-term runway for trading cards, despite Q4 deceleration due to strong 2024 comps.
- **Vehicles Business**: Peggy notes Caramel's low take rate (mid-single digits) but sees potential for high ASP GMV contribution.
- **De Minimis Impact**: CFO expects 1% GMV growth headwind in 2026 from U.S. trade policy changes, offset by focus category momentum.

eBay Inc. (EBAY) Q3 2025 Earnings Call Transcript

- **Revenue and Profit Beats**: Q2 GMV +4%, revenue +4%, non-GAAP EPS $1.37 (+16%), all above expectations.
- **Focus Categories Surge**: Collectibles GMV +10% YoY, P&A +1%, luxury apparel auth expansion driving growth.
- **AI-Driven Growth**: Generative AI boosts GMV via optimized listings (+40% quality visits), eBay Live GMV rising across categories.
- **U.K. Resilience**: GMV growth sustained despite buyer fee, managed shipping adoption driving 20bps take rate improvement.
- **2025 Outlook**: Full-year GMV low-single-digit growth, non-GAAP EPS +10%-12%, $2.5B share buyback target.

**【CEO Summary Section】**
- **Q2 Financial Highlights**: GMV grew 4% to $19.5B, revenue rose 4% to $2.73B, and non-GAAP EPS increased 16% to $1.37, all exceeding expectations.
- **Focus Categories Growth**: Collectibles GMV grew over 10% YoY, driven by trading cards (e.g., Pokemon, Magic: The Gathering) and luxury apparel authentication expansion. P&A contributed nearly 1% of GMV growth, with U.S. returns and fitment data improvements.
- **AI and Innovation**: Generative AI boosted GMV through optimized listings and personalized emails, with 40%+ increase in quality visits. eBay Live GMV and watch time grew, expanding into luxury goods and U.K. markets.
- **U.K. Initiative Success**: Despite a buyer fee, GMV growth remained strong, supported by managed shipping adoption and cost savings.
- **Sustainability Recognition**: Named one of Time's Most Sustainable Companies, with initiatives like eBay Balance and Seller Capital empowering sellers.

**【CFO Financial Commentary】**
- **Revenue and Margin**: First-party ad revenue grew 17% to $455M, contributing 2.5% of GMV. Non-GAAP operating margin expanded 50bps to 28.4%, driven by ad monetization and cost efficiencies.
- **Tariff Impact**: Direct shipments from Greater China faced headwinds, but forward-deployed inventory ASPs offset losses. Q3 GMV guidance: $19.2B-$19.6B (3%-5% YoY), with FX tailwinds.
- **Cash Flow and Share Repurchases**: Q2 free cash flow negative due to tax payments, but $625M shares repurchased. Full-year repurchase target: $2.5B.

**【Q&A Key Highlights】**
- **Marketing Efficiency**: Lower-funnel ad spend efficiency improved due to competitive dynamics. AI-driven ad optimization lifted GMV.
- **Trading Cards Durability**: Collectibles growth may moderate in Q4 but secular trends remain strong. eBay Live and authentication services drive long-term engagement.
- **Margins and Growth**: Focus on top-line growth via focus categories and horizontal initiatives. Non-GAAP EPS 2025 outlook: 10%-12% YoY growth.
- **Tariff Scenario Planning**: Guidance accounts for potential trade policy disruptions, with resilience in U.S. and focus category diversification.

eBay Inc. (EBAY) Q2 2025 Earnings Call Transcript

- **Q1 Outperformance**: GMV +2%, Revenue +1%, Non-GAAP EPS +10% to $1.38, all beating expectations.
- **Focus Categories Lead**: Trading cards grow 9th straight quarter, fashion AI feeds drive 20% GMV per listing gains.
- **C2C Momentum**: U.K. C2C GMV growth outperforms baseline, with managed shipping closing 50bps monetization gap.
- **Ad Resilience**: 14% ad revenue growth, 3.7M sellers adopt ads, shielding from macro volatility.
- **Tariff Mitigation**: 50% of China-US GMV uses SpeedPAK, 40%+ GMV from pre-owned goods buffers against inflation.


**【CEO Key Highlights】**
- **Q1 Financial Stronghold**: GMV grew 2% to $18.8B, revenue rose 1% to $2.58B, and Non-GAAP EPS increased 10% to $1.38, all ahead of expectations.
- **Focus Categories Thrive**: Collectibles (led by trading cards) and fashion drove 6% GMV growth. Trading cards saw 9th straight quarter of acceleration, with PSA integration boosting buyer trust.
- **C2C Innovation**: U.K. C2C GMV growth outperformed pre-launch metrics, with managed shipping adoption nearing full scale, closing monetization gaps.
- **AI-Driven Efficiency**: Magical Listing tools reduced seller time by 50%, with 90%+ satisfaction across U.S., U.K., and Germany, driving GMV per listing up 20%.

**【CFO Financial Breakdown】**
- **Revenue & Take Rate**: First-party ad revenue grew 14%, with Promoted Listings contributing $1.1B listings. Take rate rose 10bps to 13.8%, offsetting U.K. C2C headwinds.
- **Profitability**: Non-GAAP operating margin of 29.8% faced 70bps headwind from server depreciation. Free cash flow reached $644M, with $2B+ normalized free cash flow expected.
- **Tariff Impact**: U.S.-China GMV (5% of total) uses SpeedPAK for tariff transparency, mitigating 50% of potential disruption.

**【Q&A Key Themes】**
- **Tariff Resilience**: 40%+ of GMV from pre-owned goods buffers against macro uncertainty. U.K. C2C initiatives and AI tools reduce seller friction, maintaining growth despite 130bps FX headwinds.
- **Ad Business Strength**: 3.7M sellers used ads in Q1, with Promoted Listings General up 14%. Diversified ad products (e.g., offsite CPC) shield against single-market volatility.
- **Long-Term Growth**: $2B+ capex targets 4-5% revenue allocation, supporting AI, C2C, and fashion innovation. Leadership reorg aligns teams for faster execution in AI-driven commerce.


eBay (EBAY)-30 Apr 25-2025 Q1 Earnings call transcript

- **GMV Growth Accelerates**: Q4 GMV +2% YoY, focus categories (+6% YoY) and trading cards drive momentum.
- **AI Drives Efficiency**: 100x larger AI models, 10M+ sellers using Gen AI tools, 100M+ AI-generated listings.
- **Strategic Expansion**: Caramel acquisition targets $75B vehicle TAM, Facebook Marketplace partnership expands reach.
- **2025 Outlook**: Low-single-digit GMV growth, $2B+ free cash flow, and $2B+ share buybacks.
- **Key Risks**: Tariff exposure (5% GMV), Europe macro challenges, and managed shipping implementation in UK.

**【CEO Summary Section】**
- **Q4 GMV Growth**: $19.3 billion (+2% YoY), driven by focus categories (6% YoY) and trading cards (double-digit growth). UK C2C GMV improved by double digits post fee overhaul.
- **AI Innovation**: 100x larger AI models than 2023, 10 million+ sellers using Gen AI tools, and 100M+ AI-generated listings. eBay Live and Explore features boosted discovery for longtail inventory.
- **Strategic Acquisitions**: Caramel acquisition to expand vehicle sales ($75B TAM) and Facebook Marketplace partnership for cross-platform exposure.
- **2025 Priorities**: Scale AI, expand focus categories (P&A, Luxury, Fashion), and enhance global C2C experiences in UK and Germany.

**【CFO Financial Commentary】**
- **Q4 Financials**: Revenue $2.58B (+1% YoY), Non-GAAP EPS $1.25 (+16% YoY), Free Cash Flow $560M.
- **2025 Outlook**: Low-single-digit GMV growth, $2B+ free cash flow (excluding one-time tax impacts), and share buybacks of $2B+.
- **Key Drivers**: Advertising (+16% YoY), financial services (Buy Now Pay Later), and managed shipping in UK.
- **Margin Dynamics**: 2025 operating margin expected flat due to depreciation headwinds, offset by ad growth and buyer protection fees.

**【Q&A Key Insights】**
- **Consumer Trends**: US demand resilient, Europe lagging. Focus categories (non-new in-season) growing faster than core market.
- **UK C2C Strategy**: Buyer protection fees rolled out mid-Q1, managed shipping to be mandated Q2. Take rate expected to stabilize above pre-2024 levels.
- **AI Impact**: 30% improvement in model accuracy, 10x lower latency. Sellers using Magical Listing see 90% satisfaction rates.
- **Tariff Risks**: 5% GMV exposure to China, 75% of which is pre-tariff. Testing OpenAI and Facebook integrations to mitigate disruption.

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