eBay (EBAY) 31 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, good afternoon, and thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the eBay Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Thank you.

like President the of now John over would Vice Egbert, Investor I to conference turn to And Relations.

You may begin.

Good us for Conference all for Quarter you Earnings Call. afternoon. XXXX eBay's Thank Second joining

the call Steve and Chief Joining me our today are Iannone, Executive Priest, our Officer. Jamie Financial Officer; Chief on

We're commentary investors.ebayinc.com. of the the website presentation at call, Investor which our slide providing the section accompany is Relations a to during available through eBay

certain conference Before measures we you remind our we related non-GAAP begin, discuss performance. that during to call, will this I'll

can the nearest our presentation. You find measures reconciliation to comparable accompanying of the these in GAAP measures slide

Additionally, all amounts rates in share share, reflect comparisons, year-over-year will our prepared diluted growth organic FX-neutral reflect per noted all earnings otherwise. earnings indicated and per remarks unless

management limitation, will including, involve and call, future performance known statements, forward-looking uncertainties. statements and financial risks our conference results. forward-looking without expected make and this These statements regarding During unknown

materially of forecast Our our for may results variety differ a actual from reasons.

about and uncertainties other on release recent You can in XX-K, operating risks, most earlier today. and from could earnings find XX-Q factors Form affect periodic Form our reports results our our information more that

do no as statements. You this intend is in any XXXX. of not duty undertake We should July forward-looking All and to presentation update XX, information. not on rely information this

turn I'll Jamie. over that, the With to call

Good John. joining afternoon, Thanks, everyone, today. and for thank all us you

notable a term. of goal our results achieving growth toward QX long step over profitable strong the marked Our sustainable,

rose to X grew XX.X%. X% billion. point merchandise volume billion margin QX. increased Our $XX.X by $X.XX gross in Revenue Non-GAAP operating to X% to

landscape. and continued ongoing delivering billion our and by to to these quarter. I'm proud for regulatory $X.X of we geopolitical an over per results dividends earnings rose the share $X.XX, non-GAAP XX% evolving and headwinds, amid during Our shareholders uncertainty macroeconomic through repurchases teams returned approximately

motors, points. accessories company on PSA Collectibles through among its grading marketplace and largest a by services of remainder parent GMV integrating trend of We and approximately of on X with collectibles. King latest with series QX, of made elevating mid-May, the towards and QX growth, GMV X let's Focused continued drive for XXX X% Season of of Now our team growth successful over categories support by transactions or the of provider then, the leading focused expanding Golden the helped parts global drivers we've QX. the Netflix a grew healthy second eBay our In After auction awareness the progress of to closed and results. experience. eBay collectors, Collectibles key some of was in Live. our hosting in which events walk significant authentication Golden principles P&A, contributor the PSA Since for Golden, we and began relationship category outpacing premiere

the and already completed storefront in I'm of of on thousands their can we cards drive sell innovation excited years tens QX, of trading live just customers -- eBay, at During June, to our going having assets trading sit of come. jointly on PSA without vault on for the card has late to easily now ahead and to for companies the hobbyist sold behalf PSA the of schedule, transfer of grading to PSA time back cards eBay all

customers. and eBay resonate refurbished our as was also category of with GMV fastest-growing combination a to was year-over-year quality significant focus continues contributor growth value and to our trust,

the and grow categories. partnerships we like Our continues as to unique expand sellers program with refurbished items onboard to extend CVT of with new to inventory access OEMs Dyson, selection existing

direct storage previously brands. amount of consumers, for from e-waste global solutions. also these but Seagate, eBay a QX, to collaboration in drives. sales partnership this by of we refurbished significant value and great we the recertified leader with owned can clubs refurbished a on for eliminate only expanded of returns During factory top warranties life hard world's sustainability products Seagate's storefront announced of to drives. golf hassle-free hard Not June, data extending a eBay are clubs, official In bringing product the quality We cycles thousands launched golf the

Consumers' desire sustainably categories, shop focused also year-over-year benefited positive our to luxury the quarter. GMV sixth which growth for has delivered straight

have luxury acquire with we correlation well-priced sellers with incremental strong As more we inventory, observed GMV. a

led after to For our handbag opening instance, expansion in cross-border of center, authentication acceleration Tokyo saw a the our luxury inventory. a demand we significant of meaningful which

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companies for recently which are million and the recognized to proud by best Foundation Forbes acknowledged in QX that X strategic America's Fortune employers most to as was Additionally, for innovative historically I'm We granted share opportunities. removing the companies. $X grants eBay barriers early nearly of were to addressing also by nonprofits, offer the as entrepreneurship excluded groups. recognizing best career one new who of eBay

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earnings delivering compelling future, returns share shareholders. disciplined per for -- layering the growth Our investments capital double-digit generating advertising is for business while and

provide Steve performance. financial details over on to you. Steve, I'll over that, to turn the more to With call our

and Jamie, earnings thank begin joining us today. section presentation. you, with highlights of I'll for the Thank all financial our you

Next, operating I'll discuss key in our metrics detail. financial greater and

I'll for before begin the quarter Finally, context full outlook provide and on our third Q&A. year the we

in despite metrics returned $X.X billion. expanded will volume execution and XX.X%. I demand repurchases XX% our key grew comments merchandise in organic earnings to of billion. an returned We unless strategic expectations delivered X% an FX-neutral otherwise. against exceeded year-over-year QX, over to financial major X shareholders and across to our My positive discretionary by we our Non-GAAP basis, non-GAAP markets. by share to know reflect environment on comparisons Gross initiatives up driven X% margin $X.XX through billion up We dividends. growth, operating nearly per Revenue $X.XX to $XX.X uneven point

grown would closer from XX look the during merchandise basis, a billion. grew On organic adjusting financial $XX.X X% take still Let's second in roughly FX-neutral timing GMV XXXX. basis an Easter of to have performance when favorable for our points gross the at X% volume impact nearly quarter.

total the FX-neutral QX Golden in Our XX XX. closed acquisition May after to growth GMV points basis contributed of on deal nearly

XX addition, growth GMV of a exchange roughly In to spot points basis. was basis foreign headwind a year-over-year on

our X against strategy over and aggregate initiatives. remainder nearly The X% culmination of growth. driven the or combined flat spending to in goods, accelerating horizontal the and our to with continued point markets. teams focused was country-specific refurbished X recent consumers than reflects than initiatives. QX, faster of continued GMV for points efforts Our these nearly execute innovation by collectibles of as X luxury investments category continue contributed looking rest helped the in marketplace discretionary product offset geo-specific including for grew category momentum GMV QX horizontal our more marketplace, expansion, quarters, broad-based all our on over of across progress our value, which in Focused pressure largest and by P&A,

Next, traffic GAAP to including our a nearly aided quarters, walk our was through where the results which investments GMV a Collectibles improved and U.S. in recent by X have and I'll U.S., QX, growth, trends key to geographic improved strategic grew partnerships. organic conversion U.S. market contributor us growth. trading by point in basis. e-commerce organic but costs, U.S. our on narrow in helped

basis X% new point start to CXC U.K. basis, noted an International headwind reporting came GMV some effect. into growth. In the FX U.K., sales requirements a while digital by over volumes year. grew in on to FX-neutral was the XX softness we the when spot

reporting on improve and prone this through earlier. to touched which mitigate experience in to pressure working are initiatives buying and We Port, selling sellers educating the laws by on these Jamie

horizontal investments and offset helped headwinds. category focused Germany, In macro our prevailing

by trade our across major quarters. Greater and China buyers markets. key great inventory cross-border GMV have for growth recent of a in been international driver powered Japan this In providing addition, has growth

In CBT has higher authentication there coverage fact, in even Japan, center our last than category since overall. opened accelerate we our seen focused its is marketplace our within growth particular, volume In year.

Looking forward, easier quality sellers onboard them attractive these marketplace. we opportunities more our inventory to bring make regions it for see to in and to

buyer QX. XX-month was to end million, active and sequentially Trading at year-over-year million were basis, buyers. improve. positive over since buyer just to buyer per new to stable buyers $XXX XXXX Moving on gradually active early and a as remain year-over-year retention grew enthused and reactivated growth time $XX active $X,XXX. as inspire for of at respectively, buyers the stable, continue first slightly the approximately per fractionally while buyers and once Spend positive spend total again was On

Turning to revenue volume We second billion by quarter, roughly of $X.XX generated the X% during X as revenue revenue. point. up outpaced

point to a Foreign revenue headwind X growth. exchange spot was

Our driven was points advertising. were eBay XX%, offset flat headwind year-over-year by primarily more basis, from a shipping of basis QX FX roughly CXC and an in payments rate initiatives take up basis was On quarter-over-quarter, take approximately by XX approximately our first-party as XX than rate ads, tailwinds and international first-party points.

X% grew X.X% revenue $XXX of GMV. nearly million represented advertising to penetration in and Total QX

XX% our over $XXX grew ads expectations. line in First-party to million, with

this As dynamics due revenue a of ads a first-party extraordinary in the we ads last deferred released lapping of as in growth attribution. quarter year, we CPC to Halo result faced reminder, rollout when of QX

roughly to in to nearly QX, third-party deprecate $XX we our addition, In display continue XX% revenue million. with legacy declining

the tax-related offset from including retroactively sales Shifting costs foreign headwinds lower operational payments traffic expenses due Canadian associated Non-GAAP efficiencies, exchange tax and year-over-year depreciation cost headwinds. matters, roughly and in offsite margin expenses. ramping ads including to gross to partly digital XXXX, basis lower declined QX, profitability. of points with by were These recognized XX acquisition

including and offset foreign margin approximately improving a program funnel efficiencies, of cost the Non-GAAP full in initiatives. was the revenue, higher in exchange XX more point XX.X% points quarter, cost of basis our than operational reinvestments headwind as our X structured marketing operating year-over-year

reported of nearly in GAAP X% As per the grew year-over-year by $X.XX $X.XX. and share earnings to quarter. a result, XX% a non-GAAP QX, earnings non-GAAP operating income in basis, share per On and we grew

I'll our capital balance Next, allocation. and discuss sheet

tax tax the $X.X cash QX California's in flow program. timing payments the nonequity billion. quarter down second was second and year, of cash to year to to with quarter QX free and of over investments from due the million, the cash were debt majority of payments. gross disaster our due Last relief delayed of billion year $X.X tax $XXX We Our ended

portion you notes million principal As on of to will issue over due. filing, notes up fixed to of of in $XXX X, will We coming the rate our $XXX million commercial plan a those XX-Q of our August see senior weeks. coming paper we to repay refinance

QX, $X billion of remaining billion eBay authorization roughly under shares we $X.X price had average of $XX and the During the an our approximately at buyback at of period. end repurchased

billion a cumulative share. shareholders nearly $XXX we In paid this we $X.XX to XXX% per beginning or over in million quarterly to of returned June of period. of cash flow cash the dividend addition, XXXX, free Since have repurchase dividends, $X.X

Turning to portfolio. our investment

valued $X.X acquisition at the at XXX billion Our May equity million the in and this XX. received investments roughly million $X.X end and $XXX plan related Premier and play were next approximately The shares in consortium to Blackstone billion completed warrants which quarter. second to taxes by transaction, cash of led proceeds. We year. Advent we of the We incurred over gross on sold

equity through billion consortium 'XX the shares as entity XX% $X of the has purchase ownership ownership the private hold November eBay Following $X.X approximately option or valued outstanding from we XXX of just billion. the roughly to the of date. over roughly XX% at The deal, million closing to

Adient million nearly includes end at warrants valued In addition, portfolio investment of the our at QX. $XXX

Adient on and calculated including Adient value price warrant vesting. the Our based of probability share is several assumptions,

at Our the was $XXX investment of valued at million quarter. end the roughly market G

Moving to our outlook.

At FX-neutral economic a representing GMV X% positive would Golden Total between QX. over between in FX-neutral represent strong revenue growth. $X.XX We more to quarter, in represent third an third would forecast and execution of in point growth currency between contribute points be X% regulatory X% points uncertain basis and expect $X.X as We GMV to outlook headwind basis negative expect representing headwind FXN organic similar would $XX.X XX year-over-year. to GMV and and This revenue the we year-to-date growth billion of XX the to billion again rates, growth X%. spot estimate billion X.X growth balances quarter, We generate growth. current to $XX.X of foreign billion environment. FX our to than

non-GAAP and between a between in XX.X% margin organic XX year-over-year XXX to step points. M&A-related expansion due down expenses, and a margin XX.X%, operating normal We integration a investments representing quarter incremental and This including fourth basis operating represents of QX forecast seasonality, sequential costs.

We expect to generate growth non-GAAP earnings per in share between and representing QX, XX%. $X.XX XX% and year-over-year $X.XX between

Now the to for expectations our remainder of shifting year. the

would X QX to revenue narrow faster versus implying growth change in FX-neutral investments in no geo-specific than spot to GMV environment, GMV flat represent than of We year-over-year focused Assuming a QX. by delivery. forecast current point delta more driven execution in and year-over-year an GMV macro up grow a expect modestly fundamental we product growth categories, FX-neutral FX tailwind QX. and and continued the rates, growth At between on horizontal QX, basis, X%

growth advertising on shift towards expect during in ASP rate mix. continued in core we products from seasonal mix initiatives, pressure modest CXC Although higher and QX, investments similar first-party take category we anticipate

operating of hedging year margin maintaining non-GAAP XXX for points. In of XX dynamics. basis roughly to revenue full spot be basis to addition, FX benefit year-over-year quarter XX the expansion in of estimate growth outlook between a will we due points We're our

not is As we have to outcomes. in tied volume year, where solely noted range throughout this land the we

positive our in to growth. investments fitual bit return XXXX, strategic Our GMV a to

growth. exploring opportunities incremental drive to investments for are date, Given we our durable execution to long-term

we of to onetime have margin in headwind expenses basis about XXXX, Additionally, offsets XX operating including from absorbed points Notably, integration M&A costs.

our X% remains full at for X% revenue between average. capital in the for line year, with forecast Our expenditure of unchanged to historical

to tax our rate XX.X%. remain We stable at expect non-GAAP

We billion continue full $X year. of just under cash to expect flow free for the

to are our billion. position, our target Given repurchase we $X.X robust year sheet this at least share raising balance

addition, per for our third a Board of September. in share paid the quarterly In dividend quarter be to declared $X.XX

we XXXX. increasing total non-GAAP year-over-year our business share updated and second per our Given XX% plan, between outlook allocation for our half, growth are date, for an to to strong forecast the XX% for earnings performance

QX expected year-over-year uneven We quarter and growth. than closing, maintained In the positive non-GAAP another for eBay achieved share double-digit growth strong despite backdrop. per macro earnings earlier was GMV

we and to our continuing portion we strong deliver financial while Advent addition, to In business for year healthy, long and attractive balanced a invest able stake repurchase full testament our to an of It categories increased initiative. focused growth model is that in at a target. monetized horizon specific run geographies significant are our price stock the our across

With your will that, Jamie and now take questions. I

[Operator from comes of the Instructions] first And your with Stanley. Feather Nathan Morgan question line

of on questions quick the few the A advertising business. side

comp about interested you're green not unified off, think first And So and how to more in targeting? advertising growth platform also if the campaign should hear adoption ad in we difficult the within XQ? seeing any shoots then in smart back half, that the

seeing in Nathan, we that we rolled momentum advertising. just features talked about Yes. about, The the new just we're great feel out. Overall,

for now before of of as and is types about it things other we early you But to great have your things, we campaigns redesigned for this have in campaigns better. new well, suggestions. exciting overhaul really First, trend-based major manage like in campaign We And keywords, daily business, they markets. to all a suggested advertisers a of this about what's experience things as secondarily, recommendations the changing about their snapshot them can part a add adoption all interface. do, make ask new it's in other gives test the rolling them Australia of those. it out you performance So did When campaign

on all we're And happening, trend-based type now you're listings So popping have. a with some around site AI. seeing by doing the that kind seeing driven of something a the we're seller event Christmas other time or suggested would campaigns,

business. what adopt our on easier early In it you sellers ad want maybe from made though, seeing we're what today. resonating up about we're kind products, comment it's of our and really results, we've seeing help stages to this. to excited we're with early in but simpler ad the overall penetration it's time every general, So just Steve, the to and drive

some some in where, Nathan, modest by in to as expect despite go existing drive or we half, as again, take of we the ramp products, well. Yes. Pads rate the continuing off-site we One driven see momentum do promoted second really some expansion forward, our acceleration the business, lapping, up but products also modest

momentum seeing continue in the year. to momentum with pleased the drive we're the should back And of that half So

then And more one. one Great. quick Okay.

supercomputer do what XX the next first think things. have Interested think features? months, the some improvements of Now help with the you to points are made lot the a seller that G&A from you really the XX immediately are to addressable side have fully of online, friction of of key over

key the the on the vision side, this to making -- out. than have Look, have this it of easier Yes. is we I throw selling Nathan, list

really So a listing, garage, onboard your home, a cetera, your item making to CDC your et closet, listing. for new in it any seamless

your we're and have, we've an computing models of of all the the item associated sophisticated And XX years better it, with in attributes, with at this and And capability have enhanced creating title, the so description them customers that really on background is, using with this spread items to at that. this platform, element really make can an since better obviously, able have. cost things or Similarly, effectively and proprietary from tools that items filling we we your history we're it of listings train that to of with that out, on that beautiful it build to and perspective. LOMs these XXX% now data, make internal on a what or like then helps predicting able open these the on massive you now X.X to be kind us to billion desk, of put images very job we stand rug built writing background on lot your able on because live bed data. makes data item do a scale and source sets which look merchandise the we do take do

about fashion which say to your in that talked actually your which I'd know continue bought, on you size, feature Shop feed to style, called new the available interesting I've in market, Finally, will care you've Look, together about buy testing a the things launching pre-loved gives things the eBay. side. information the features you and based which on we're about we're we ability U.K. up, see on outfits category are that Explore, products we scale the

that to I'm we've we infrastructure drive more capabilities, seen scale will these the in have accelerate us really terms excited and date, by of we're what excited but new So continue what of the to innovation. to help

And Colin comes next of Baird. line the Sebastian your from with question

for additional that you previous to out another tools you of that dry keeping a of are around capital one the years roll your about so, on rate what some I what Ai the thoughts the thinking can it maybe, are incremental as specifically of couple interest And you buybacks, rate guess, the of you sort higher were then a And outside or term. Gen could advertising the powder Are to thinking basis focus? first of than M&A? longer are growth allocation. clarification take follow-up Maybe the be probably of of as or expand incremental points? ago. still attach even updating And Steve, questions. kind more a areas if hundred Or few of capabilities. just

we a products and stores. for Yes. from that long promoted rate some offsite adoption Colin, growth. from optimization runway we and like promoted from That's of have both see the penetration listings ad scaling ads overall, new

continue to see of lot So opportunity. we a

seeing it's after see really that redesign We make easier nice existing are X%, progress sellers, We for for sellers but new penetration. are quarter. in. at for look at X.X% to obviously sight Investor which easier to at when cetera, advertising a said of line quarter you how to and the we Day, more did, And do recommendations, products to we easier bring about also our access et we just we

So one? we of at X% out that opportunity. the line there want continue the you we is a a runway second and not us. Investor to for put see It's just long to ceiling sight do Steve, take of Day,

good speak to course, of you. Colin, to Yes,

to As build execution said, of be balanced our a priority seen partner to the And we from continues you've momentum. always capital long-term first growth business. the focus you've investing allocation. the did seen from in we framework. by approach on And the a

good that in the the some money second we we're of work. saw putting quarter the that to You've seen growth

ability that returns what's the think to capital advantage only give about affords shareholders. invest is the tremendous business, very in I continue to that to not eBay us our competitive balance sheet healthy but the has to

continue commitment that shareholders, for we've last returning just in there's over of the last In philosophy addition fact, that that. and X least cash our quarterly no $X.X to to XXXX to the increased our demonstrate to to change quarters. in we increase dividend excess in at target couple continued years, doing And for billion share we've in the in X% done repurchases

think, I'm for a advantage at our we pleased And pleased balance said, with here balance. So eBay. where are, is I distinct as us the I sheet with

And question Arounian your comes with the of next Ygal line Citigroup. from

international. just Maybe on one

coming from features and You quarter. continuing, what's you the then the U.K. of some the Germany guess, Any on there? And or and quantify What called lot kind you're lot think expand far? far just broadly out focus quantify GMV headwinds of so far, way some of a any impacts if there there's are so in of tick and the I seen the here what other internationally in seeing last there. up or of to and have trends understood seeing opportunity successes to the the to a way been some so you've about a

you. one, Steve to speak I'll to pick good up here, first the

domiciled. the is international a dynamics, of is terms the geography GMV the as in the in reflected Just where reminder, just seller

we've sort various spend discussions specifically particularly on dynamic the dynamics discussion about environment, to very the had talking Undoubtedly, of Europe a in some and that is seeing. So as over we international uneven quarters. of pressured continue based the see we're

China CXC fashion, we're With that's the and terms the particularly recently But in there's German element more making invest. momentum really to in headwinds the we we've prelift international, trade, continued seen. those level initiative of other healthy seen is U.K. a where in markets. of offset our of investments inventory. coming in we've that of some cross-border out Japan, around to helping of and continue particularly Greater see out those to good focus We've penetration category

center customers. to invention drive and a has the have so And which continued last built Japan, greater our partnered we quarter, with authentication that talked to level of we about U.S. European luxury and in

for so investments X% reflection of improvement the and some in that the question. on to is your we're on over second see grew we a forward. sequential the that second year-over-year And driving Jamie, did international quarter, GMV FX really a momentum basis,

them. products. you are customers our are we correlates from when high from look metrics new AI, GMV. really at and with seeing for for good example, them, using that engagement On that XX% And that like, seeing above. of And CSAT Yes. our the we're always some it's

As translate to GMV. XX% we some We've easier German in drive Germany, a markets able into we're in increase CXC our and drive Europe for in in to seeing and the point CSAT, list CSAT, it of example. CSAT made we're market, that

many learn recommendations and they're It's site. increased what the that's like So development providing experience week we're seeing so us buying across shop it AI single for they the And changing vectors. pleased with we're that advertising, that great seeing the them, what the listings. about learning we whether smarter and across search, we're across Explore. day, every look, the we're magical giving on sellers It's and is them it's about tools across so is new or with changing engagement that Explorer, get algorithms month

continue we'll it. so And to drive

nice growth. CSAT lead really and metrics do GMV come see to it, to continue much changes those out We of healthier

the your Wolf from of line Khajuria question And with Research. Shweta comes next

we response, on move no question. Hearing the [Operator to next Okay. Instructions] will

We from Lee will question Deutsche with take the Horowitz Bank. next

still a margins to the this below of about product your investments forward, year, Steve, range. you platform meaningfully will to guys that typical improve work When by and debt will get relative the lot we up and growth brought have behind eBay many into that we be expense path have sort to the appreciate of product want of you your you put pretty end and expand 'XX. things think and

this we're more thus of the from investments forward. XXXX, beyond that growth much think is look you beyond need we the as investment and substantially future in thus has laid So subdued sort drive incremental tracks the going year, cycle for to do XXXX that

For I'd XXXX. to the question. not just I'm regards with where where expect and we like get to are going XXXX, to we're exactly we reflect for on be. Mesquite to it on

invest has in geo-specific support to I points and margin about. testament basis guide to focus when company XX momentum this year. the time, to initiatives our we've and the of a Jamie continued business At to horizontal expansion support think same the it's the category that investments the to talked XXX the continue

invest all we'll lean we to saying second where continue to been continue we've growth half. in, long-term do to and opportunities drive As see we'll that continue and to year, the we in sustainable

longer-term to I I'm sustainable think it's financial what see -- half provide setting the that second not year, for that during a well, architecture the And with I'd we say opportunity. with for have I think is momentum I only this us up XXXX. but continues us And we our encouraged of really growth the as future. in

that on bear for the follow-up guys growth platform. bringing of of to half the products Great. algo maybe then all sort the second and you X And are

that beyond? array the of in you meaningful not And second improving you platform. GMV expect in guys irons new fire have amongst half? sort the second half there investments, a terms that obviously You But GMV of is of of some size driving incremental these holds some to from in number, way a the to you terms lot horizontal incrementality focus the see that in the do in terms of the think dollars and expect if which products in you most categories have, the of of of any of these broad promise

some Yes. been recommendation really When and our search and investments been well. in that Germany business the we're We've that making, geo-specific about we've doing in you work about investments done across horizontal the think as CXC they've trust. think the board, in

quarter-on-quarter flat it really look nearly core this business in if nice is couple at which we're you so quarter, And of in categories. our for quarters. past growth over the our

help they given say So focus support all I mean I but than our work. categories of are categories also helping our categories support categories, focus core combined that only those other not our core, when

really really So Luxury parts complementary. as the in was and broadly straight I continue board. look at momentum well the a categories, quarter. nice positive I those they about work our focus our saw business. think When across sixth We accessories to for

Collectibles at more got business, have we run convention the normalized card We and card we kind the last bulk pandemic, sold were about national, for great there. immediately the twice trading rate our which coming then big had in to to you shift Our well. much grade listings allowing the and you the than business this at trending innovate have magical more of We've week into talking it to there it is afterwards is a adding that right which back having without to sellers there. a quarter, partnership response. and PSA introduced with simply We ship continue

you focus this about. see growing So even macro environment, our board, the good X%, in feel across at which categories we

horizontal the combination them the complementary we between see working those after to improvement the quarter. X that focus together. So the is seeing see sequential And X categories of We quarter those we're of the and work. leading

with Devnani question line next comes of from Bernstein. your the And Nikhil

buyers, this has been enthusiast sustain probably flattish growing now, ask to buyers base start at GMV for buyers, growth again you to to active while active point. but if about as mid-single-digit low some a forward least wanted have look you metric I at to then

investors forward? be growth, for to feel could categories a the your provide on going you metrics get comfortable you within or as look do to some come audience And is anything proxy your can there might this color metric come? to how quarters to in maybe these about incremental improve what's how detail So focus trending ability at with

we where exactly we and where be to be. I would intended we're Yes, thought

the year-on-year reactivated by of years, over and count early since and our a basis our buyer XXXX. couple of for And or time new driven consistent improvements that's on first retention $XXX active Our year-over-year was improvement positive trends last seen the in in buyers year-on-year. been we've fractionally an growth million in

parts at buyers, doing more enthusiast Gala buyers drive made we're some buyers our saying active we're improving changes our bringing been the does Love ability buying or really our out and of want or people are unique is a accessories are we we for from I that going about in number which targeting eBay. while we're with what which McLaren, work and metric script, They're really the several strategy focused buyer quarters. shopping and active core a has the look And and site on, are we to the year. whether an those -- retain with fires our what and I that fashion been get in for and attract and it's really but which cross-category is the shopping doing is remain enthusiast on of XX% of consistent annual I've the enthusiast leveraging $X,XXX Island are $XX the Met sponsoring know behavior us about pleased it's that there spend to on that stuff those approximately help healthy strategy, platform to driving, because if at to average not buyer then So you that and the acquisition talked that drives our million we're

of about that about making that are, great we're the the and we the where metrics in feel we're seeing. improvements So traction underlying progress the

within least Is that that. more the the a the say just a could at a bit categories? for I you If to would fair ask trends follow-up buyers are that statement? enthusiast pronounced focus

XX% a we overlap categories core an when acquire buyer supports When categories see enthusiast a shop it enthusiast from category, we of an there's is category focus focus and But that benefit our in you that we're our work focus what well. buyers, as in doing. the look at them

in in categories watch in, handbag, categories that they $X,XXX $X,XXX going they're $XXX-plus in if going if watches $X,XXX comes then categories. but So buyer handbag focus they're average, handbags, other spend buyer Similarly, a categories. a spend they'll to will and in but buy purchased come in other on $X,XXX to a nonfocused crosses

for on XX% for for our not we marketplace why flywheel the enthusiast focus the fire because it's core of overall of it So and part categories categories. number, that just but the is creates focus effect that

Tom Piper with question from comes of your the And line Sandler. next Champion

seems lot out signals of health, strokes, Europe. economic U.S. what it of like you the consumer broad and I'm Jamie, just there in curious there. do both a conflicting are Western think the

then, take. for the take Just cut And can curious at more midpoint. growth Steve, outlook you, the you GMV one your XQ at just at maybe the core flat and guide

result been Why FX neutral quarter? the the quarters. Looking There's the XQ. X X% step clear back over there at be would in trend a third in last progress,

that over goods products now in the said consistently we've those as XX% the as sales driven refurbished cost past spend, and Look, consumer used quarters, new get macro we've seen hit the few Tom. pandemic. have environment since goods some by quarter of we've are brand of or Yes, the outpaced our

imagine, So can others as are performing some better than environment. you in this categories macro

is quarters. our As positive. I has luxury straight still mentioned, category been That for X

the experience pressure and affluent and values used, great more there's improved think on market. on making CC with I platform environment. consumers our less in season customers great So the want to values one? you real on non-new macro focus combined in come helping take is compete easier so in our this that second the to us refurbish, in really and challenged consumer But products when can providing use customer sell effectively Steve, macros do the

uneven. business. environment. growth a gone has last in particularly seeing that returns East, forward. of been saw making we've with we about sports that, we're But XX to the little I've so one-off bit approaching we this events, one-off in uneven be And for obviously, impacts after The the or course. year-over-year saw demand month-to-month point see on in this pleased we were the positive the you momentum seeing in some Easter months the said are second of making be been It we and trends seeing a tailwind some benefits growth. quarter. continued associated very even continues travel And Yes. as global the a to elevated we're think and specific quarter, are in over which We've quarter Obviously, quite we've summer quarter. sort basis XX investments dynamic. with environment that been that to we've reflection timing. Yes, a the GMV of the some macro the about second quarter, having the positive

uncertainty strong to we that third into seeing, that I the like concern there momentum overall, effect. guide, But regulatory really had we're feel guide growth. in so out we've confident quarter and we're contemplate And economic we take And as to continued I the environment. and date execution continue remain we're long-term And encouraged balances with we've put that the path the this on sustainable perspective. towards

can question, one we please? Operator, last take

Yes. Ross Barclays. from Sandler of comes final line And the your with question

is This for Ross. Hughes Alex on

give So out a card to you can broadly? just to categories. then talk a that moving situation how your the Collectibles that lot the earlier But is week little months. looking sellers thinking as next if in factor? driving trading focus just bit of news few Collectibles, power came Golden you this more a Can Fanatics played X growth And color back, at of about deal a stepping and the little more more you're opportunity in was about

seller. Yes, any I'm not to one talk about going

really items. the collectibles events innovation the that capabilities excited simplify marketplace XX held we the quite selling some have PSA. the process perception steps that there. people What had collectors onto great live grading of over all the Ken and Golden asking with to last we about into time, the of have really inventory coming the business. really we hobbyist the Season solve They on and had and that that so see we're X eBay consumer auctions, streaming, on Golden been including for, really millions collectibles great in Collectibles at changing. Golden partnership amazing team business. and is about platform. with King the of We We new of by week also a in driving say I is which we're that the bringing leading National on sellers taking, kind world's It helps the feel And show the records and supported and hitting We're resonating for great the that brings was collectors his is that most desirable there. with Golden XXX in Netflix

through it potentially So PSA you're process looking sending put the increase with to really We've that friction marketplace. you're an really partnership to massively usually the why just in adopt now degrade, that that really we're simplified free. going if and as this that's we're customers and whole value seeing making

live one innovate leading secondary XX% last here a quarter, for and In like of our marketplace just really drive which case X capabilities we've and spot So kind eBay kind of We I them in just built. and We been is grew we capabilities. we've talk eBay work Live. those breaks, live participate really in started adopting QX, breaks doing buy in eBay of about decades. a great the of we in and events case over U.K. And would launched new quarter-over-quarter. they're our are eBay and new great directly our sellers Every on The the it launched feature lot new Live finding fun. to I a well. QX is see features for as on hub, some

quarters by seeing. to collectibles stats accelerate these continuing and years past methods the price collections what and done really So And component, that help really work the and over and new of the guides we're which see with shipping to encouraging the business. partnerships accelerating we're we've good is our on also new I'm momentum all

gentlemen, and today's thank participation. conference this we ladies your And and call, you concludes for

You now disconnect. may