eBay lowers full-year guidance
Less engaging marketing initiatives took their toll on eBay for the second quarter, an issue that pushed the company to lower its full-year guidance.
For the quarter ended June 30, revenue was $2.6 billion, a 9% year-over-year increase. In addition to being at the lower end of its guided range of $2.64 billion-$2.68 billion, revenue also missed analyst estimates of $2.66 billion. Net income was $638 million.
In the second quarter, eBay grew active buyers by 4% across its platforms, for a total of 175 million global active buyers.
During the second quarter, the company also announced its intent to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion. The company plans to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity.
The company also completed its acquisition of Giosis’ Japan business, including the Qoo10.jp platform, which expands its footprint in Japan.
eBay also lowered its full-year revenue guidance to between $10.75 billion and $10.85 billion.
eBay’s president and CEO Devin Wenig explained that the company will also revamp its marketing strategy, due to projects that underperformed. “We have experimented with all kinds of new mediums of human to computer interface,” he said during the company’s earnings call on July 18.
“It’s very healthy for us to constantly experiment and have a portfolio of projects that are both near and far, and on some of the far ones we are continuing and some we are not,” Wenig added. “Some key initiatives may not deliver GMV acceleration until later in the year. While the first half of 2018 has brought some unanticipated challenges, we expect core acceleration in the second half while delivering very strong earnings growth.”
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