eBay reported its Q2 2016 earnings today, bringing in $2.2 billion in revenue and a non-GAAP earnings per share of $0.43. In addition to its financials, the online commerce company revealed that its board has approved a plan to repurchase an additional $2.5 billion in stock and has for the first time crossed 1 billion live listings on its site.
By comparison, Wall Street analysts had expected the company to generate $2.17 billion in revenue and an EPS of $0.42, so eBay beat expectations all around. Shares in the company closed up 1.85 percent at $26.99 and, following the results, have continued to increase nearly 5 percent.
Showing that it’s able to stand on its own, eBay has pointed to the fact more than 1 billion active listings are now on its site. This is indicative of the fact that people aren’t tired of its offerings and are actively soliciting bidders for their unwanted items. And as its platform continues to steam forward, with more listings being added, eBay said it’s working on improving its technological and geographic footprint, largely through acquisitions.
In the past quarter, it has acquired Expertmaker and SalesPredict to improve its artificial intelligence and machine learning. The goal of these deals were to enrich eBay’s structured data initiatives around how it collects data, processes it, and uses it to create new product experiences not only for itself but also sellers. It has also purchased TicketBis and Ticket Utils for its StubHub subsidiary to improve ticket distribution and help merchants better manage their inventory around events.
At the beginning of this year, eBay announced that it would spend $2 billion as part of a common stock repurchase program. As an update to that, in the second quarter, it spent $500 million from that fund, leaving $300 million remaining as of the end of June. But the company doesn’t plan on stopping once its initial repurchase authorization is used up. It shared that the board of directors authorized another $2.5 billion to be used to buy back more shares. This program is intended to “programmatically offset the impact of dilution from our equity compensation programs.”
Today’s news also includes a revised outlook for the full year 2016 in terms of revenue and EPS. eBay said that it expects net revenue to be between $8.85 billion and $8.95 billion, with non-GAAP EPS between $1.85 and $1.90. Last quarter, it estimated revenue to fall somewhere around $8.6 billion and $8.8 billion.