eBay Reports 11% Revenue Growth in Q3 2021
Multinational e-commerce retailer eBay posted better-than-expected results for the third quarter ended September 30, 2021.
In the three months, the company’s revenue increased 11% to $ 2.5 billion on an as published basis, and 10% on a currency neutral basis.
EBay’s net income from continuing operations was $ 283 million based on generally accepted accounting principles (GAAP), while its diluted earnings per share (EPS) was $ 0.43.
Non-GAAP net income from continuing operations in the quarter was $ 591 million, with EPS of $ 0.90.
The company also generated $ 661 million in operating cash flow and $ 502 million in free cash flow from continuing operations.
EBay CEO Jamie Iannone said, “Our team had another strong quarter, meeting or again exceeding our expectations for all key business metrics, making further progress in our multi-year strategy.
“Our third quarter results, driven by the near completion of our managed payments migration, the expansion of our advertising portfolio and volume growth in our priority categories, demonstrate that our strategic strategy continues to work. I am proud that we have been able to increase customer satisfaction, instill trust and foster constant innovation, while continuing to set ourselves and progress towards our ambitious climate action goals.
The company’s GAAP operating margin declined to 26.5% for the third quarter, from 29.3% for the period last year.
It repurchased approximately $ 2.3 billion of its common stock and paid $ 116 million in cash dividends during the quarter.
For the fourth quarter of 2021, the company expects its revenue to be between $ 2.57 billion and $ 2.62 billion and its diluted GAAP EPS to be between $ 0.72 and $ 0.76.
In June of this year, eBay agreed to sell a controlling stake in its Korean business to South Korean retailer Emart for around KRW 3.44 billion ($ 3.0 billion).