Ebay Acquiring Companies To Improve User Experience And Conversion

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For some time now, eBay’s users have been a disgruntled lot. It has a poor feedback management system and there are issues in search and discoverability. eBay (NASDAQ:EBAY) is now focusing on improving these organically and through acquisitions.

eBay’s Financials

eBay’s second quarter revenues grew 6% over the year to $2.23 billion, ahead of the Street’s expectations of $2.17 billion. Net income was $435 billion or $0.38 per share. Non GAAP EPS was $0.43, beating market’s forecast of $0.42 for the quarter.

During the quarter, gross merchandise volume (GMV) grew 4% over the year to $20.9 billion. By segment, revenue from Marketplace Platforms declined 3% over the year to $1.5/1.8 billion and accounted for $19.8 billion of GMV. StubHub revenue grew 40% to $225 million and recorded a 35% growth in GMV to $1.1 billion driven by strength across multiple genres and product innovations. eBay’s Classifieds Platforms saw revenue grow 15% to $207 million driven by strong growth Automotive and Real Estate verticals.

Among operating metrics, active buyers grew 4% over the year to 164 million at the end of the quarter. However, the growth rate of active buyers has steadily declined. It crossed the one billion live listings mark for the first time.

For the third quarter, eBay forecast revenues of $2.16 billion-$2.19 billion with non GAAP EPS of $0.42-$0.44. The Street was looking for revenues of $2.14 billion for the quarter with an EPS of $0.44. eBay raised its full year guidance and now expects to end the current year with revenues of $8.85 billion-$8.95 billion compared to the earlier guidance of $8.6 billion-$8.8 billion. Analysts expect revenue of $8.81 billion.

eBay’s Recent Acquisitions

eBay has recently been making several acquisitions to enhance its search-related technology and improve the user experience.

In May, it acquired Sweden-based AI startup ExpertMaker for an undisclosed sum. ExpertMaker is expected to help eBay better manage its inventory and aggregate insights into supply and demand.

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Gil Richards 2 years ago Member's comment

Impressed #eBay is being so aggressive with it's acquisitions. They've let #Amazon completely eclipse them when it comes to innovation. $EBAY $AMZN.