EBay unveils first-quarter earnings results

EBay reported first-quarter results after the bell on Wednesday.

The company posted an adjusted 49 cents per share, when Wall Street was forecasting 48 cents. EBay reported revenue of $2.2 billion, when analysts were expecting roughly the same at $2.21 billion. This is up 4 percent from last year.

Gross merchandise volume, a measure of the total sales transactions of the platform, came in at $20.9 billion, slightly beneath the $21.06 billion analysts had been expecting.

EBay is facing a 24.6 percent annual decline in its operating margins, because it is spending more on marketing to help grow its business, amid growing competition in e-commerce.

“The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business,” said Devin Wenig, president and CEO of eBay Inc., in a statement. “We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages and market a sharpened eBay brand globally.”

Sports and concert ticket platform StubHub brought in $210 million in revenue, up 18 percent year-over-year, representing a growing portion of eBay’s business.

EBay updated its guidance for the year, expecting between $9.3 billion and $9.5 billion in revenue for 2017.

The company also repurchased $350 million in common stock.

EBay recently announced a strategic partnership with Flipkart, a large e-commerce platform in India. The company made a $500 million cash investment and is selling its eBay.in business to Flipkart. Microsoft and Tencent also added to the investment in Flipkart.

Shares closed Wednesday at $33.85, and went down about 3 percent in initial after hours trading. EBay shares have gone up 34 percent in the past year.

The company split from PayPal in 2015.