Ebay Eyeing International Markets

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Photo Credit: Mike Knell/Flickr.com

Amazon’s continued leadership in the retail sector, coupled by Walmart’s push in the e-commerce segment is raising significant concerns for eBay (Nasdaq: EBAY). eBay is fighting back by looking at international markets for growth.

eBay’s Financials

eBay’s first quarter revenues grew 12% over the year to $2.58 billion, marginally short of the Street’s expectations of $2.60 billion. Adjusted EPS grew 9% over the year to $0.53, and was in line with the market’s forecast for the quarter.

During the quarter, the Marketplace platform brought in $2.1 billion in revenues. eBay recorded a 13% growth in the gross merchandise volume (GMV) to $22.5 billion driven by the continued focus on new user experiences. StubHub contributed revenues of $232 million, and GMV of $1 billion. The increase for the segment was driven by a record Super Bowl and strong international growth. Finally, revenues from Classifieds platforms grew 24% over the year to $246 million.

Among operating metrics, global active buyers and customers increased 4% to 171 million. The market was looking for active buyers and consumers to grow to 173 million for the quarter.

For the current quarter, eBay forecast revenues of $2.64-$2.68 billion with an EPS of $0.50-$0.52. The market was looking for revenues of $2.68 billion for the quarter with an EPS of $0.52. eBay expects full-year revenues of $10.9-$11.1 billion with earnings of $2.25 to $2.30 per share. The Street was looking for revenues of $11.02 billion for the year with an EPS of $2.29.

eBay’s User Experience Enhancements

eBay continued to invest in the improvement of the users’ experience. It recently launched a new Interestsfeature which is expected to help simplify the search process for shoppers significantly. It will gather details on the customer’s interests, hobbies, and style and then use algorithms to offer merchandise that best meets those insights. The feature is currently available on the eBay mobile app in the US for both iOS and Android devices. It plans on bringing the service to the rest of the world during the coming months.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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