eBay Q3 2017 earnings were released after closing bell tonight, and the company reported non-GAAP earnings of 48 cents per share on $2.4 billion in sales. Analysts had been expecting non-GAAP earnings of 48 cents per share on $2.3 billion in revenue. In last year’s third quarter, eBay posted earnings of 45 cents per share on $2.2 billion in revenue. The company had guided for 46 cents to 48 cents per share in non-GAAP earnings.
On a GAAP basis, eBay Q3 2017 earnings from continuing operations also amounted to 48 cents per share. Total gross merchandise volume grew 8% on a reported basis and 7% on a currency-neutral basis to $21.7 billion.
“In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years,” eBay President and Chief Executive Officer Devin Wenig said in a statement with the eBay Q3 2017 earnings release. “Our customers are responding to the significant product enhancements we have been making, and this is reflected in our results.”
The company’s Marketplace platforms delivered $20.5 billion in gross merchandise volume, a 9% year-over-year increase on a reported basis, and $1.9 billion in sales. Marketplace sales in the U.S. and Europe led the growth. StubHub gross merchandise volume grew 2% year over year to $1.2 billion, while StubHub sales increased 5% to $275 million. Classifieds growth accelerated during the third quarter as sales grew 19% on a reported basis and 13% on a currency-neutral basis to $235 million.
eBay added almost 2 million active buyers across all its platforms, bringing its total active buyer base to 168 million globally, excluding domestic active buyers in India after the sale of the India business to Flipkart.
The company also bought back $907 million of its common stock during the third quarter and generated $877 million in operating cash flow and $720 million in free cash flow from continuing operations.
For the fourth quarter, eBay guided for $2.58 billion to $2.62 billion in net revenue, GAAP earnings of 40 cents to 45 cents per share, and non-GAAP earnings of 57 cents to 59 cents per share. Consensus for the fourth quarter currently stands at earnings of 60 cents per share on $2.58 billion in sales.
Following the eBay Q3 2017 earnings release, the company’s stock tumbled by more than 4%, falling as low as $36.42 in after-hours trades.