eBay’s efforts to revamp its business are paying off, as the company has reported better-than-expected results in the first quarter.
The online retail giant has posted a 5 percent revenue increase, beating analyst expectations. Following the announcement, eBay shares rose 2.1 percent to $24.98 in extended trading.
The solid results will give eBay the much-needed boost it needed to regain investors’ confidence.
eBay Q1 Earnings Up: Main Highlights
Some of the key takeaways of eBay’s first quarter results include the following:
- Gross merchandise volume or the total value of all goods sold increased 1 percent to $20.45 billion.
- Over 900 million live listings are now available at any time.
- Number of active buyers rose 3.8 percent to 162 million.
- Revenue in the second quarter is expected to be between $2.14 billion and $2.19 billion.
Commenting on the first quarter results, eBay President and CEO Devin Wenig said, “Q1 represents another quarter of solid results, as we continue to position eBay for long-term success.”
“We are executing our plan and making progress on our strategic priorities to ensure our buyers have the best choice of products and a simple, personalized shopping experience, while sellers benefit from our powerful selling platform.”
StubHub Drives eBay’s Growth
Much of eBay’s growth came from StubHub, its ticket reseller subsidiary. StubHub reported revenue of $177 million, up 34 percent from the same period last year.
According to Wenig, StubHub’s new features have struck a chord with users and contributed to its growth. Significantly, StubHub is now testing virtual reality to give event attendees a more immersive view of what the view is like from their seats before they buy a ticket.
Traffic Efforts Pay Off
A prominent factor that has contributed to eBay’s revenue growth is its focus on boosting traffic. The company has introduced barcode scanning and a more searchable catalog to draw more shoppers.
It’s also worth noting that eBay is standardizing how merchants list goods on the site to improve search engine results. Businesses can use their smartphones to scan the barcodes on new products.
The barcodes also link to consumer reviews and product images to boost search results.
Strong Focus on Small Businesses
The online retail company has also been focused on attracting small businesses. The company recently partnered with ecommerce platform BigCommerce to make it easier for small businesses to sell on the site.
eBay also launched its Shipping Supplies Store from where eBay sellers can purchase shipping boxes and other supplies emblazoned with the eBay logo. eBay branded boxes are a great option for small businesses short on shipping supplies.
eBay Photo via Shutterstock