eBay obtained $418 million net profit in Q3, declined by 23% yoy

US e-commerce giant eBay announced its Q 2016 earnings by September 30 today. The report showed that eBay obtained $2.217 billion in net revenue in Q3, increased by 6% yoy. Net profit from continuing operating was $418 million, declined by 23% yoy.


eBay predicted its net revenue in Q4 will be ranging from $2.36 billion to $2.41 billion. The net profit for continuing operation business based on non-GAAP will be ranging from $ 0.52 to $ 0.54 which is under analyst’s prediction.

FactSet investigation showed eBay share profit was adjusted to $0.54 after analyst prediction for Q4, and revenue is predicted to be $ 2.4 billion.

eBay share declined by 6% after trading hours on the same day when the prediction released. Here comes with some detailed information of eBay earnings.

The GMV of Q3 was $20.1 billion. Its growth rate was 5% based on FX neutral basis, while was 3% based on the calculation of reporting basis. Its net revenue in Q3 was $2.217 billion, increased by 8% in accordance with FX neutral basis and 6% based on its report records.

eBay net profit from continuing operating business was $418 million on the basis of measurement of GAAP, which was a 23% decline of $545 million yoy. The profit of each share was $0.36 and with a decline of 20% from $0.45 yoy.

The GMV on Marketplace was $19 billion in Q3, among $1.8 billion was its revenue, with an increase of 5% of FX neutral basis. Its revenue in Classifieds was $197 million and with a 14% increase of FX neutral basis.

eBay effective tax rate for continuing operating business in Q3 was 21.6%, while it was 18.0% in the same period last year. In addition, its non-GAAP effective tax rate was 22.2% in Q3 and 20.2% in last Q3.

The cash flow and free cash flow from continuing operation business in Q3 respectively were $ 802 million and $ 617 million. In addition, eBay encountered purchase with a value $ 500 million general shares in Q3, up to 16.5 million shares. By September 30, 2016, eBay was approved to encounter purchase of shares at the value of $ 2.3 billion.

eBay share increased by $0.88 in NASDAQ trading hours, closing at $32.52 on Wednesday. However, its share suffered decline after trading hours, locate time at 16: 49.

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