eBay said its second quarter results exceeded expectations on key metrics as it continues its “tech-led reimagination.”
The marketplace’s gross merchandise value (GMV), revenue and earnings per share (EPS) came in at or above the high end of eBay’s guidance ranges during the quarter ended June 30, eBay said in a Wednesday (July 26) press release.
“Three years ago, I set our ambition of becoming the best global marketplace to buy and sell through a tech-led reimagination,” eBay CEO Jamie Iannone said in the release. “Now, we’re raising the bar for innovation and have evolved our vision — to reinvent the future of eCommerce for enthusiasts, only at eBay.”
The company’s shares dropped Wednesday, however, as its projected earnings per share for the current quarter fell short of analysts’ expectations, Bloomberg reported Wednesday. eBay expects earnings per share of 96 cents to $1.01 during the quarter ending in September, while analysts had anticipated that figure to be $1.02.
The shortfall suggested eBay is struggling to perform and is losing market share to the online offerings of Amazon, Walmart and traditional retailers, according to the report.
eBay undertook a number of strategic initiatives during the past quarter, according to its press release.
To authenticate products sold on the marketplace, the firm launched an Authenticity Guarantee for streetwear in the United States, expanded its Authenticity Guarantee to kids’ sneakers in the U.S. and the U.K. and trading cards in Canada, and launched a Certified by Brand program that helps luxury brands expand their presence in the secondary market, the release said.
eBay also acquired an artificial intelligence (AI)-powered authentication provider for fashion called Certilogo, per the release.
It also launched a Live Commerce Streaming experience on iOS and began beta testing a generative AI tool on its mobile app that helps sellers create item descriptions, the release said.
eBay has set its sights on selling more luxury items in order to increase revenue. It also plans to offer refurbished items to attract shoppers who are more price-conscious.
The firm has found that if a buyer purchases a high-end handbag on the platform, for example, they are inclined to buy other, related items as well.
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