The paragraph introduces eBay's First Quarter 2025 Earnings Call, led by an operator named Leyla. The call features presentations from eBay's CEO, Jamie Iannone, and CFO, Steve Priest. A slide presentation is available on eBay's Investor Relations website to accompany the discussion. The call will include discussion of non-GAAP financial measures and forward-looking statements, with the latter carrying potential risks and uncertainties that could lead to actual results differing materially from forecasts. More detailed risk information is available in eBay's recent financial reports and earnings release.

The paragraph outlines the company's strong financial performance in Q1 2025, with increases in gross merchandise volume, revenue, and non-GAAP earnings per share. It also highlights the return of capital to shareholders. The company acknowledges challenges in cross-border trade due to new tariffs and customer requirements in the U.S., affecting small businesses and consumer confidence. To address these issues, the company focuses on its SpeedPAK shipping program, which simplifies international shipping and ensures customs compliance, with tariff duties included in the checkout price. For non-SpeedPAK shipments, the company educates buyers about potential costs and delays.

The paragraph discusses eBay's strategies and results in Q1, highlighting growth and innovation in various areas despite challenges from tariffs. Key drivers of Q1 performance include a 6% growth in Focus category GMV, with collectibles, specifically trading cards, being the largest contributor for the second consecutive quarter. eBay's partnership with PSA enhances their marketplace, enabling over 0.5 million trading card sales through a seamless integration. New initiatives include incorporating PSA data directly into item pages for graded cards and launching a service allowing buyers to purchase and send cards directly to PSA for grading, streamlining the process and cutting costs.

The paragraph outlines eBay's efforts to enhance its fashion category, which generates over $10 billion in annual GMV. The company has improved the customer experience for luxury fashion and pre-loved apparel through AI-powered shopping features and expanded inventory for its authenticity guarantee. eBay has also focused on increasing trust with enhanced condition grading standards for apparel and launched a new AI-driven discovery experience in the U.S. and U.K. This innovation includes dynamic, theme-organized feeds with interactive elements like videos and promotions. Moving forward, eBay aims to establish itself as a trusted destination for pre-loved branded fashion products, offering a comprehensive shopping experience across various brands and price points.

The paragraph discusses eBay's initiatives in enhancing its consumer-to-consumer (C2C) market in the U.K. for growth in 2025. In Q4, new capabilities were launched to improve the U.K. C2C experience, surpassing internal growth expectations and narrowing monetization gaps with a new buyer protection fee introduced in February. Key improvements include managed shipping, which simplifies the process and reduces costs, and free shipping options and carrier flexibility for sellers. Future plans involve introducing pickup and drop-off options and support for bulkier items. AI advancements are also being utilized to streamline and improve the marketplace, with the rollout of a simplified AI-powered listing flow in the U.K., U.S., and Germany.

The paragraph discusses enhancements in eBay's listing process, including the use of generative AI to streamline listing details and the introduction of a more intuitive step-by-step process for sellers. These improvements have led to higher seller satisfaction, increased completion rates, and more listings. The Magical Bulk Listing tool, particularly popular among B2C sellers and for sports trading cards, has significantly reduced listing times and increased weekly listings. Expansion of this tool to the U.K. and Germany has shown similar benefits. eBay aims to simplify the listing process to capture a larger e-commerce market. Additionally, eBay's first-party advertising revenue rose by 14% in Q1, with Promoted Listings constituting a significant portion of total listings.

In the first quarter, over 3.7 million sellers adopted eBay's Promoted Listings, contributing significantly to the company's ad revenue growth through enhanced personalization and optimization. The introduction of automated image optimization and expanded cost-per-click units further boosted engagement. In payments, eBay expanded its payment options by partnering with Klarna for buy now, pay later solutions in the U.S., resulting in higher average order values. The adoption of eBay Balance in the U.K. has grown, increasing C2C customer purchases. eBay also partnered with Checkout.com to enhance payment resilience and improve authorization rates, offering better payment experiences for its 134 million global customers. Overall, eBay achieved its fourth consecutive quarter of positive GMV growth despite economic uncertainties.

The paragraph details several leadership changes and structural realignments at eBay. Steve is stepping down after playing a crucial role in eBay's transformation, and Peggy Alford will become the new CFO, bringing extensive experience in finance and operations. The company is restructuring to enhance innovation, collaboration, and customer focus, integrating product and market teams under Chief Commercial Officer Jordan Sweetnam, and consolidating engineering under Chief Technology Officer Mazen Rawashdeh. This organizational shift aims to position eBay for future growth. It also mentions that Chief Product Officer Eddie Garcia will be leaving the company.

The paragraph highlights leadership transitions and financial performance at eBay. Jamie expresses gratitude to Eddie for his leadership and contributions, and hands over to Steve Priest, who reflects on his tenure as CFO and expresses optimism for eBay's future. Steve then discusses eBay's Q1 financial results, noting that the company exceeded expectations with nearly 2% growth in gross merchandise volume (GMV) to $18.8 billion and a revenue increase of over 1% to $2.58 billion. Non-GAAP operating income reached $771 million, with earnings per share rising by 10% to $1.38. Additionally, approximately $760 million was returned to shareholders. Despite challenges such as foreign exchange headwinds, growth drivers included categories like trading cards and luxury goods. The paragraph concludes with an introduction to the geographic performance discussion.

In the first quarter, GMV grew by nearly 0.5 point, primarily due to the trading cards business, with U.S. growth slightly surpassing international markets. International GMV increased by nearly 3% on an FX-neutral basis, though faced a 250 basis point headwind from FX. Despite weaker international macro environments, especially in Germany and the U.K., investments in C2C have improved growth trajectories. Active buyers grew by over 1% to 134 million, with enthusiast buyers numbering around 16 million. The Q1 revenue was $2.58 billion, reflecting over 1% growth on an FX-neutral basis, with a slight increase in the take rate. Advertising contributed significantly, generating $442 million in Q1, aided by the inclusion of advertising revenue from platforms like Q10 and TCGplayer for the first time. Excluding off-platform ads, advertising revenue would have grown by 12%.

In the latest financial report, eBay's first-party ad revenue increased by over 14% to $418 million, while third-party ad revenue dropped by 41% to $8 million. The company's non-GAAP gross margin decreased slightly due to factors such as depreciation expenses and traffic acquisition costs, although this was partly offset by payment efficiencies. eBay's non-GAAP operating margin fell to 29.8% in Q1, also impacted by the UK C2C initiative, but benefited from a foreign exchange tailwind. Non-GAAP earnings per share rose by 10% to $1.38, while GAAP earnings per share increased by over 25% to $1.06 due to previously reported investment losses. eBay generated $644 million in free cash flow, holding $6.2 billion in cash and non-equity investments by quarter's end. After paying down debt and repurchasing shares, eBay had $6.7 billion in gross debt and repurchased $625 million worth of shares, also paying a $134 million quarterly dividend. The company's equity investments, primarily an 8% stake in a private entity, were valued at over $1.1 billion.

The paragraph discusses the impact of tariffs and trade policy changes on sales and buyer behavior, noting a potential early demand surge due to consumer concerns about rising costs. It outlines the company's wider-than-usual guidance for the second quarter, projecting a Gross Merchandise Volume (GMV) between $18.6 million and $19.1 billion, with FX-neutral growth ranging from -1% to 2% year-over-year. The company expects foreign exchange to provide a significant tailwind for GMV and revenue growth, which is forecasted between $2.59 billion and $2.66 billion. Sequentially, the take rate is expected to improve due to contributions from the UK buyer protection fee and managed shipping. The non-GAAP operating margin is anticipated to be between 27% and 27.8%, with FX tailwinds balancing out some headwinds. Non-GAAP earnings per share are forecasted to grow 4% to 11%, reaching $1.24 to $1.31. Further insights on the full year will follow.

The company maintains its full-year guidance for 2025, forecasting low single-digit FX-neutral GMV growth and slightly higher revenue growth driven by advertising, shipping, and financial services. They anticipate non-GAAP operating income growth to align with revenue, despite unique challenges affecting margins. Capital expenditures are expected at 4-5% of revenue, with a stable non-GAAP tax rate of 16.5%. Free cash flow forecast remains steady, excluding over $1 billion in tax payments. The company plans at least $2 billion in share repurchases and declared a quarterly dividend of $0.29 per share. Non-GAAP EPS growth is projected in the high single digits. These forecasts assume stable tariffs and macro conditions, with potential risks impacting results.

The paragraph is from an earnings call where eBay's leadership is discussing the company's strong start to 2025, highlighting their successful strategy and sustainable growth over the past four years. The speaker expresses gratitude for working with a great team and looks forward to eBay's continued success. They then open the floor to questions, with Eric Sheridan from Goldman Sachs commending Steve for his contributions and inquiring about how eBay is addressing demand elasticity in the face of potential price increases. Jamie Iannone begins to respond to Eric's question.

The paragraph discusses eBay's positive outlook amidst an uncertain macro environment, highlighting its resilience due to a strong global seller base and an increasing demand for used and refurbished goods, which are growing faster than new goods in the marketplace. eBay's position is strengthened during consumer pressure periods as it attracts buyers seeking value and new sellers looking to make money. The flexibility and adaptability of its smaller seller base have proven advantageous in past challenging times, such as during COVID. The paragraph concludes with a transition to the next question from Nathan Feather of Morgan Stanley.

The paragraph discusses the impact of China tariffs on eBay's business, particularly concerning China-based exporters. Jamie Iannone, the speaker, explains that although tariffs have increased costs, eBay is confident in its ability to support its community. He notes that the Greater China to U.S. trade route accounts for about 5% of eBay's total GMV, with 3/4 of it already subject to tariffs. Additionally, eBay has developed a shipping solution called SpeedPAK that simplifies tariff and customs complexities. This solution is used by about 50% of the remaining inventory not forward-deployed. Iannone highlights that such solutions provide transparency for buyers and could become more popular. Overall, eBay benefits from having a diverse inventory that allows for substitution across its marketplace.

The paragraph is part of a discussion during an earnings call, where Jamie Iannone addresses a question from Nikhil Devnani about the impact of tariffs on advertising revenue, particularly concerning China-based merchants. Iannone explains that their advertising business is strong, with over 3.7 million sellers using a single ad product and 1.1 billion live broader listings. He mentions there has been no material impact from tariffs, and there is demand across various advertising products, including Promoted Listings General, CPA-based, and CPC-based products. Iannone is pleased with the current performance and sees a positive ongoing opportunity in advertising. The operator then cues the next question from Colin Sebastian.

The paragraph discusses the concept of Agentic Commerce, highlighting its impact on consumer behavior and e-commerce platforms. Jamie Iannone responds to Colin Sebastian's inquiry about this concept, outlining the progress being made with their internal projects. Iannone mentions the success of tools like magical listings, which have helped create over 200 million listings, generating billions in gross merchandise value (GMV). They are using Agentic Technology across marketing and customer support to enhance efficiency. Additionally, they've launched new tools like "Shop the Look" and a fashion discovery platform using AI. There's mention of collaboration with OpenAI and other tests being conducted with their own technology.

The paragraph discusses the integration and importance of AI within an organization, emphasizing its broad application in customer experience and internal operations. It transitions to a Q&A segment with Ross Sandler from Barclays, where he inquires about the geographic sourcing of products, particularly those coming from China, and the potential impact of a consumer pullback on the company's business. Steve Priest responds by noting that 5% of global GMV involves Greater China to the U.S., and over 40% of the products sold are used or refurbished, highlighting this as a competitive advantage in providing consumer value. The discussion reflects on how eBay might fare in a recession, given its diverse product categories, compared to previous economic downturns.

The paragraph discusses eBay's strategy for managing the impact of tariffs and economic conditions on its platform. It notes that U.S. sellers sourcing products from Greater China and eBay's cross-border trade (CBT) sellers face similar tariff challenges. Despite consumers having reduced discretionary spending, eBay's marketplace is resilient due to its inventory, offering value through used or refurbished products, and catering to different income levels with categories like handbags and trading cards. The platform's pivot to focus on non-new items over the past five years has increased its resilience and diversification, providing various shipping solutions.

The paragraph discusses a conversation between Deepak Mathivanan and Jamie Iannone about eBay's strategy for leveraging its platform's mix of pre-owned and refurbished goods to gain a competitive advantage. Jamie highlights the company's efforts to boost both buying and selling activities, particularly in the UK and Germany, by promoting eBay as a great platform for new sellers. He notes that when buyers become casual sellers, they tend to purchase more. The marketing strategy focuses on the significant consumer-to-consumer market potential, emphasizing that households have valuable goods that could be sold on eBay. To capitalize on this, eBay is simplifying the selling process through features like "magical listing," which automates listing details.

The paragraph discusses the advancements and strategies of a company, likely eBay, in its listing technology and platforms. The company has introduced a bulk magical listing feature, leading to increased trading card listings. It has also launched a new discovery platform for pre-loved fashion, focusing on size and style, aiming to expand these innovations through 2025. The company leverages its scale to attract buyers across different categories, noting that customers who purchase high-value items like watches often make additional purchases in other categories. They have a new partnership with Caramel in the vehicle sector, which also drives significant spending from buyers. The company's global scale and financial model allow it to invest in emerging opportunities, enhancing its position in the market. At the end of the paragraph, an operator introduces Shweta Khajuria from Wolfe Research, who asks about the current health of the consumer market from the company's perspective.

In the paragraph, Steve Priest addresses a question about demand and consumer health across different geographies. He notes that the macro environment is uncertain but highlights that demand in the U.S. remains resilient with healthy volume trends in the second quarter. However, in Europe, particularly in the U.K. and Germany, consumer confidence is low due to concerns over cost of living, inflation, and geopolitical events. German consumers are particularly worried about U.S. trade policy and stagnant GDP growth. Despite these challenges, the company has maintained positive GMV growth for four consecutive quarters, demonstrating effective execution and strategic investment.

The paragraph details a discussion about the company's strategic efforts and performance. Steve Priest addresses the company's marketing strategy by emphasizing a balanced approach to drive operational efficiency and sustainable long-term growth, highlighting recent effective investments. Tom Champion queries about the significant year-over-year growth in listings, noted at over 2 billion, attributing this to strong selling experiences and a growing C2C seller base. Jamie Iannone confirms the increase, citing double-digit growth in listings and a rise in the 12-month active seller count since 2023. Additionally, there is a mention of better performance in March compared to February, though the exact reason isn't specified.

The paragraph discusses the efforts of eBay to strengthen its C2C (consumer-to-consumer) value proposition by reducing friction in the selling and shipping processes, particularly highlighting initiatives like magical listings, image enhancements, and managed shipping solutions, such as eBay international shipping in the U.S., SpeedPAK in China, and upcoming managed shipping in the U.K. These efforts have boosted seller and listing numbers. It also mentions fluctuating demand early in the year, with a softer market in February but positive growth in March and April driven by the platform's health and focus categories showing a 6% year-over-year increase.

The paragraph discusses the company's strategy regarding mergers and acquisitions (M&A) as they focus on the fashion category in 2025. Jamie Iannone explains that the company uses a "build, buy, and partner" framework to enhance their capabilities. He highlights their partnership with Collectors Universe for trading cards, where they offer new features for collectors. On the acquisition front, successes with TCGplayer and Golden Auctions are noted for accelerating capabilities. Furthermore, they emphasize internal development by mentioning the "magical bulk listings" feature. Overall, the company continues to explore opportunities in fashion with a disciplined approach using this three-pronged framework.

The paragraph discusses eBay's strategic acquisition of Certilogo, a Milan-based company that aids in the digital authentication of fashion products and contributes to the development of digital product passports. This initiative facilitates one-click reselling on eBay and enhances long-term benefits. eBay is collaborating with notable influencers and organizations, such as Vogue, to promote its fashion inventory and apply similar strategies across various categories. The company is excited about progress in pre-loved fashion, collectibles, and recent acquisitions in P&A. Additionally, Jamie Iannone addresses marketing strategies, noting that eBay was less affected by heavy marketing spend from competitors like Temu and Shein, as much of its traffic is organic.

The paragraph discusses the minimal impact on the business from overlapping products, noting that the company is focusing on strategically significant categories. Marketing ROI has been healthy, with advancements being made by integrating AI into customer communication and marketing strategies to enhance ROI. Steve Priest then addresses a question from Lee Horowitz regarding potential risks to advertising revenue due to high China tariffs, stating that the ads business has shown continued momentum and strength, with a target of reaching 3% of GMV in the ad sector.

The paragraph discusses eBay's global platform success, highlighting the growth and resilience of specific categories, particularly collectibles like trading cards. Despite potential broader economic challenges, the trading cards segment has experienced healthy double-digit growth for nine consecutive quarters, thanks to eBay's innovations and partnerships, such as with PSA. eBay has introduced features like seamless listing for graded cards and eBay Live to enhance the experience for hobbyists and boost engagement, indicating confidence in the collectibles segment's continued prosperity.

The speaker expresses confidence in the strength of their business, highlighting that recent growth in trading card volumes is primarily due to an increase in sold items rather than average selling price (ASP). This suggests the growth is more sustainable compared to the ASP-driven surge in 2021. The business continues to invest in this category and introduces new features like eBay Live to enhance the platform for collectors and enthusiasts.

This summary was generated with AI and may contain some inaccuracies.