May 1 (Reuters) - Ecommerce firm eBay ( EBAY ) forecast
second-quarter revenue below Wall Street estimates on Wednesday,
as demand cools for its key product categories like collector's
items and auto parts, sending shares down 5% in extended
trading.
The San Jose, California-based company has been under
pressure as inflation-hit shoppers are becoming increasingly
choosy about their online purchases, as well as competition from
larger platforms like Amazon.com ( AMZN ).
It expects revenue in the range of $2.49 billion to $2.54
billion for the quarter ending June. Analysts on average were
expecting $2.56 billion, according to LSEG data.
The company forecast adjusted per share earnings of
$1.10 to $1.15, the mid-point of which came in below analysts
estimate of $1.14.
With bigger e-commerce platforms gaining the lion's
share of the market, eBay ( EBAY ) re-oriented itself in the recent years
and scaled offerings in the so called "focus categories" such as
luxury bags and watches, refurbished electronics and auto parts
and accessories.
In 2022, eBay ( EBAY ) bought trading cards marketplace TCGplayer
for $295 million to scale the collectible cards category. It
also started services to authenticate luxury and collectible
items.
Revenue in the most recent quarter ended March 31 rose 2% to
$2.56 billion, slightly above analysts' estimate of $2.53
billion. Adjusted per share earnings of $1.25 came in higher
than analyst estimates of $1.20.
Gross merchandise volume, a key industry gauge that
denotes the total value of goods and services sold on the
marketplace, rose 1% to $18.62 billion.
Active buyers remained steady at 132 million as of
March-end. The company defines active buyers as customers who
paid for a transaction on eBay ( EBAY ) within the previous 12-month
period.