Ebay Inc. first-quarter profits were weighed down by a strong dollar even as gross merchandise volume gained 5 percent.
After the market close, the e-commerce site said net revenues for the quarter rose 4 percent to $2.14 billion from $2 billion last year while net earnings fell 23 percent to $482 million, or 41 cents per share, from $628 million, or 51 cents, in the same period last year.
Gross merchandise volume came in at $20.5 billion, which is a 5 percent gain on a currency-neutral basis. As reported, the gain was 1 percent and “reflected the continued impact of a strong U.S. dollar,” the company said, adding that revenue rose 6 percent on a currency neutral basis.
On an adjusted basis, net income from continuing operations showed a gain of 7 percent. In its report, the company said that it generated $641 million in operating cash flow. It also repurchased $1 billion of its common stock.
By way of outlook, the company said it expects net revenue for the second quarter to be between $2.14 and $2.19 billion with adjusted earnings of 40 to 42 cents per share.
Devin Wenig, president and chief executive officer, said first-quarter financials “represents another quarter of solid results, as we continue to position eBay for long-term success. We are executing our plan and making progress on our strategic priorities to ensure our buyers have the best choice of products and a simple, personalized shopping experience, while sellers benefit from our powerful selling platform.”
“In [the first quarter], eBay continued to increase the amount of inventory on its platforms, with over 900 million live listings available at any time,” the company said in its report. “Ebay also leveraged its structured data initiative to launch improved user experiences on its marketplace platform, such as the ability to search by product ID and a newly redesigned browse experience that enables shoppers to find great deals and top-selling products in an easy-to-navigate way.”