In the early morning of July 29th, Beijing time, eBay today released its financial results for the second quarter of fiscal year 2020. EBay's second-quarter net revenue was $2.865 billion, up 18 per cent from $2.423 billion in the same period last year, while net profit from continuing operations was $740 million, up 85 per cent from $400 million in the same period last year, according to the report. EBay's second-quarter adjusted earnings per share and revenue beat Wall Street analysts' expectations and beat expectations for third-quarter and full-year results, but its shares still fell more than 4 per cent in after-hours trading.
Main achievements:
For the quarter ended June 30, eBay's net profit from continuing operations was $740 million, up 85% from $400 million in the same period last year, and diluted earnings per share from continuing operations were $1.04, up 125% from $0.46 a year earlier.
Excluding certain one-time items (not in accordance with GAAP), eBay's second-quarter net profit from continuing operations was $770 million, up 34% from $576 million in the same period last year; diluted income per share from continuing operations was $1.08, up 63% from $0.66 in the same period last year, exceeding analysts' expectations. On average, 27 analysts expect eBay's adjusted earnings per share to reach $1.06 in the second quarter, according to data provided by Yahoo Finance.
EBay's second-quarter net revenue was $2.865 billion, up 18% from $2.423 billion in the same period last year, and 21% year-on-year growth excluding currency changes, which also exceeded analysts' expectations. On average, 27 analysts expect eBay's second-quarter revenue to reach $2.8 billion, according to Yahoo Finance. EBay's total merchandise trading volume (GMV) in the second quarter was $27.1 billion, an increase of 24% compared with the same period last year, and 26% year-on-year growth excluding exchange rate changes.
EBay's total operating expenses were $1.446 billion in the second quarter, compared with $1.312 billion in the same period last year. Of this total, sales and marketing expenses were $716 million, compared with $817 million for the same period last year; product expenses were $308 million, compared with $295 million for the same period last year; general and administrative expenses were $320 million, compared with $256 million for the same period last year; the provision for transaction losses was $93 million, compared with $63 million for the same period last year. Amortization expenses for acquired intangible assets were $9 million, compared with $10 million for the same period last year.
EBay's operating margin was 28.7% in the second quarter, compared with 23.0% in the same period last year, and 34.3% in non-GAAP terms, compared with 29.2% in the same period last year. The effective tax rate for eBay's continuing operations was 26.2% in the second quarter, compared with 21.0% in the same period last year, and 15.7% in the second quarter, compared with 13.3% in the same period last year. EBay generated $964 million in operating cash flow and $866 million in free cash flow from ongoing operating activities in the second quarter.
Other financial information:
In the second quarter, eBay paid out a cash dividend worth $112 million. As of June 30, 2020, the total value of eBay's cash and cash equivalents and non-equity portfolios was $5.8 billion.
EBay's board of directors announced that it will pay a cash dividend of 16 cents per common share to shareholders, which will be paid to shareholders of record as of September 18, 2020.
Performance outlook:
EBay expects net income in the third quarter of fiscal 2020 to reach $2.64 billion to $2.71 billion, excluding year-on-year growth of 14% to 17%, exceeding analysts' expectations; diluted earnings per share from continuing operations will reach $0.58 to $0.64 according to GAAP. Without GAAP, diluted earnings per share from continuing operations would be between $0.81 and $0.87, which exceeded analysts' expectations. On average, 27 analysts expect eBay to earn 81 cents a share in the third quarter, while 27 analysts expect eBay to generate revenue of 2.55 billion dollars in the third quarter, according to Yahoo Finance.
EBay also expects full-year net revenue in fiscal 2020 to reach $10.56 billion to $10.75 billion, excluding year-on-year growth of 12% to 14%, exceeding analysts' expectations; diluted earnings per share from continuing operations will reach $2.85 to $3.00 according to GAAP. Without GAAP, diluted earnings per share from continuing operations would reach $3.47 to $3.59, which exceeded analysts' expectations. On average, 28 analysts expect eBay to earn $3.51 per share for the full year, while 29 analysts expect eBay to generate $10.43 billion in revenue in the third quarter, according to Yahoo Finance.
Changes in stock prices:
On the same day, the share price of eBay wasNASDAQIn regular trading, it fell 88 cents, or 1.54 percent, to close at 56.35 dollars. EBay shares fell another $2.31, or 4.10 per cent, to $54.04 in after-hours trading as of 04:47 est on Tuesday (04:47 Beijing time on Wednesday). In the past 52 weeks, the highest price for eBay is $61. 06 and the lowest price is $26. 02. (Tang Feng)