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Investing.com -- eBay Inc. (NASDAQ: EBAY) reported better-than-expected third-quarter results, but shares plummeted 10% in premarket trading Thursday profit guidance for the upcoming quarter fell short of estimates.
The e-commerce marketplace posted adjusted earnings of $1.36 per share, exceeding analyst expectations of $1.33, while revenue rose 9% to $2.8 billion, surpassing the consensus estimate of $2.73 billion.
Gross Merchandise Volume (GMV) increased 10% to $20.1 billion, with U.S. GMV growing 13% YoY and international GMV up 7%.
"Q3 was another strong quarter for eBay, reflecting continued momentum across our marketplace and disciplined execution of our strategy," said Jamie Iannone, Chief Executive Officer of eBay. "We’re transforming the eBay experience through AI built on 30 years of unique insights, while enhancing trusted programs in shipping, live commerce and circular fashion."
Despite the solid quarterly performance, investors appeared concerned about the company’s fourth-quarter guidance. EBay projected fourth-quarter adjusted earnings of $1.31 to $1.36 per share, trailing the $1.39 consensus forecast from analysts polled by LSEG.
The company expects revenue between $2.83 billion and $2.89 billion, ahead of the estimated $2.79 billion, with GMV growth of 4-6% on an FX-neutral basis, down from the 8% growth seen in Q3.
The company maintained strong operational metrics, with active buyers reaching 134 million, up 1% YoY. Advertising revenue grew significantly, with first-party advertising products on the platform delivering $496 million, up 25% YoY.
For the full year 2025, eBay expects adjusted earnings of $5.42-$5.47 per share on revenue of $10.97-11.03 billion, compared to analyst estimates of $5.43 per share and $10.85 billion in revenue.
"Our robust Q3 performance reflects strong operational discipline as we continue on the path of sustainable growth," said Peggy Alford, Chief Financial Officer at eBay. "Looking ahead, our focus is building on this momentum, leveraging our strong financial position and talented team to accelerate our strategic initiatives."
The company returned $757 million to shareholders during the quarter, including $625 million in share repurchases and $132 million in dividends.
(Rachael Rajan contributed to this report.)