(Oct 28): EBay Inc on Wednesday projected holiday-quarter revenue below market expectations, another sign that the online shopping boom fueled by the pandemic was tapering as consumers returned to stores.
The company was a big corporate winner in 2020 when lockdowns forced people to shop on its online marketplace, but growth has slowed since then as vaccinations encourage consumers to step out.
EBay said it expected fourth-quarter revenue between $2.57 billion and $2.62 billion, well below analysts' average estimate of $2.65 billion, according to Refinitiv IBES data.
The company also reported a 5% decline in the number of active buyers on its marketplace in the third quarter.
Gross merchandise volume, the total dollar value of sales on eBay from which the company takes a percentage, fell 10%.
But a strong showing by its payment services and the expansion of its advertising portfolio drove a 11% jump in revenue that was better expectations.
The company has doubled down on its core auction and e-commerce business in recent years through deals in a bid to fend off rising competition from industry behemoth Amazon.com Inc and upstarts such as Etsy Inc.
It earned 90 cents per share on an adjusted basis, a cent above estimates.
For the current quarter, it expects adjusted profit between 97 cents and $1.01 per share. Analysts expected $1 per share.