Ebay first quarter profit and revenue grow, but forecasts second quarter profit will fall below expectations

 
Courtney Goldsmith
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Ebay Reports Quarterly Earnings
Ebay beat expectations of profit (Source: Getty)

Ebay's revenue and profit grew in the first quarter of 2017 as more shoppers visited its online marketplaces and efforts to revamp its platform paid off, however it forecast second quarter profit will fall below expectations.

The figures

Ebay said revenue for the quarter ended 31 March increased by 3.7 per cent to $2.22bn (£1.74bn) from $2.14bn in 2016.

Net income jumped to $1.04bn, or 94 cents per share, from $482m, or 41 cents per share.

The firm added 2m active buyers across its platforms for a total of 169m around the world.

The firm's operating margin declined to 24.6 per cent for the quarter, compared with 28.7 per cent for the same period last year as Ebay spent more on marketing as it faces competition from the likes of Amazon.

Read more: eBay grows sales by four per cent in first quarter

What Ebay said

Devin Wenig, president and chief executive of Ebay said:

The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core US business. We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages and market a sharpened Ebay brand globally.

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