The market hasn’t been too pleased with eBay (Nasdaq: EBAY) lately after it hived off PayPal as an independent company. Over the past few quarters, eBay has been delivering lackluster performance for its e-commerce division and has failed to keep pace with e-tail giant Amazon. To make matters worse, the company is facing increasing competition from newer and smaller niche players like Etsy and Poshmark and has also suffered from its vulnerability to Google’s algorithm changes in the recent past. But the recent quarter’s results suggest that all is not lost.

eBay’s Financials

eBay’s Q1 revenues grew 4% over the year to $2.14 billion, ahead of the Street’s expectations of $2.08 billion. EPS of $0.47 was also ahead of the market’s forecast of $0.45 for the quarter.

During the quarter, gross merchandise volume (GMV) grew 5% over the year on a constant currency basis to $20.5 billion. On a reported currency basis, GMV reported a growth of 1% over the year. By segment, revenue from Marketplace Platforms grew 3% over the year to $1.8 billion and accounted for $19.6 billion of GMV. StubHub revenue grew 34% to $177 million and recorded a GMV of $869 million due to the increase in sports and concerts events and product innovations. eBay’s Classifieds Platforms saw revenue grow 17% to $186 million driven by strong growth in Germany and the United Kingdom.

Among operating metrics, active buyers grew 4% over the year to 162 million at the end of the quarter. It continued to increase inventory on its platforms and ended the quarter with more than 900 million live listings.

For the current quarter, eBay forecast revenues of $2.14 billion-$2.19 billion with an EPS of $0.40-$0.42. The Street was looking for revenues of $2.14 billion for the quarter with an EPS of $0.44. eBay expects to end the current year with revenues of $8.6 billion-$8.8 billion, compared with the Street’s forecast of $8.7 billion.

eBay’s Innovations and Acquisitions