Q1 2025 eBay Inc Earnings Call

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Operator: At this time, I would like to turn the call over to your speaker. Good afternoon.

At this time I would like to turn the call over to your speaker.

Operator: Thank you all for joining us for eBay's first quarter 2025 earnings conference call.

Speaker Change: Good afternoon. Thank you all for joining us for E. Bay's first quarter 2025 earnings conference call.

Operator: Joining me today on the call are Jamie Iannone, our Chief Executive Officer, and Steve Priest, our Chief Financial Officer. We're providing a slide presentation to accompany our commentary during the call, which is available through the investor relations section of the eBay website at investors.ebayinc.com.

Speaker Change: Joining me today on the call are Jamie <unk>, our Chief Executive Officer, and Steve priest, our Chief Financial Officer.

Speaker Change: We're providing a slide presentation to accompany our commentary during the call which is available through the Investor Relations section of the ebay website at investors that ebay, Inc. Dot com.

Operator: Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAP measures in our accompanying slide presentation. Additionally, all growth rates noted in our prepared remarks will reflect organic FX-neutral year-over-year comparisons, and all earnings per share amounts reflect earnings per diluted share unless indicated otherwise.

Speaker Change: Before we begin I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance you can find a reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation.

Speaker Change: Additionally, all growth rates noted in our prepared remarks will reflect organic FX neutral year over year comparisons and all earnings per share amounts reflect earnings per diluted share unless indicated otherwise.

Operator: During this conference call, management will make forward-looking statements, including, without limitation, statements regarding our future performance and expected financial results. These forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from our forecast for a variety of reasons.

Speaker Change: During this conference call management will make forward looking statements, including without limitation statements regarding our future performance and expected financial results.

Speaker Change: These forward looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from our forecast for a variety of reasons you can find more information about risks uncertainties and other factors that could affect our operating results in our most recent periodic reports on Form 10-K Form 10-Q.

Operator: You can find more information about risks, uncertainties, and other factors that could affect our operating results in our most recent periodic reports on Form 10-K, Form 10-Q, and our earnings release from earlier today. You should not rely on any forward-looking statements.

Speaker Change: In our earnings release from earlier today.

Speaker Change: You should not rely on any forward looking statements all information in this presentation is as of April 30th 2025, we do not intend and undertake no duty to update this information with that I'll turn the call over to Jamie.

Operator: All information in this presentation is as of April 30, 2025. We do not intend and undertake no duty to update this information.

Jamie Iannone: With that, I'll turn the call over to Jamie. Thanks, John. Good afternoon, and thank you all for joining us today. We started off 2025 on a strong note, as our Q1 results came in ahead of expectations across all key financial metrics, despite a dynamic operating environment. Our gross merchandise volume grew by nearly 2% to approximately $18.8 billion, marking our fourth consecutive quarter of positive GMV growth. Revenue increased over 1% to $2.58 billion. Non-GAAP earnings per share grew by 10% to $1.38. And we returned approximately $760 million of capital to shareholders through repurchases and cash dividends.

Jamie: Thanks, John Good afternoon, and thank you all for joining us today.

Speaker Change: We started off 2025 on a strong note as our Q1 results came in ahead of expectations across all key financial metrics, Despite a dynamic operating environment.

Speaker Change: Our gross merchandise volume grew by nearly 2% to approximately $18 8 billion, marking our fourth consecutive quarter of positive GMB growth.

Speaker Change: Revenue increased over 1% to $2 five $8 billion now.

Speaker Change: non-GAAP earnings per share grew by 10% to $1.38.

Speaker Change: And we returned approximately $760 million of capital to shareholders through repurchases and cash dividends.

Jamie Iannone: Before I discuss our Q1 results in greater detail, I'd like to acknowledge the significant developments around cross-border trade since we last spoke with you. Tariffs and changes to certain custom requirements in the U.S. have created significant uncertainty for small businesses, while concerns over escalating prices for imported goods have weighed on consumer confidence. As more of these new trade policies are implemented, we are focused on helping sellers and buyers navigate these changes with as little disruption as possible. Our SpeedPak shipping program manages much of the complexity of international shipping for CBT sellers across several of our largest corridors, while ensuring compliance with customs regulations in both origin and destination countries.

Speaker Change: Before I discuss our Q1 results in greater detail I'd like to acknowledge the significant developments around cross border trade since we last spoke with you.

Speaker Change: Europe's in changes to certain customer requirements in the U S have created significant uncertainty for small businesses, while concerns over escalating prices for imported goods have weighed on consumer confidence.

Speaker Change: As more of these new trade policies are implemented we are focused on helping sellers and buyers navigate these changes with as little disruption as possible.

Speaker Change: Our speed pack shipping program managers much of the complexity of international shipping for CBT sellers across several of our largest quarters, while ensuring compliance with customs regulations, and both origin and destination countries items.

Jamie Iannone: Items shipped through SpeedPak also have tariff duties included in the total price at checkout, creating greater transparency for buyers. For non-SpeedPak purchases, we are managing expectations for buyers by educating them on the new costs, information requirements, and potential delays associated with international shipments. This includes messaging on the view item and checkout pages on eBay, as well as localized information pages with up-to-date guidance amid rapidly changing policies. While our business is not immune to increased costs and friction associated with tariffs, our dynamic global supply and demand is an advantage in this environment. Our extensive selection of preloved and non-new and seasoned goods across a variety of categories can also help mitigate the pressure on consumers' discretionary budgets during periods of rising cost.

Speaker Change: Items shipped their speed pack also have tariff duties included in the total price at checkout, creating greater transparency for buyers.

Speaker Change: Non speed back purchases, we are managing expectations for buyers by educating them on the new costs information requirements and potential delays associated with international shipments. This includes messaging on the view item and checkout pages on ebay as well as localized information pages with up to date guidance amid rapidly changing policy.

Speaker Change: <unk>.

Speaker Change: While our business is not immune to increase cost and friction associated with tariffs are dynamic global supply and demand is an advantage in this environment. Our extensive selection of preloved and non new in season goods across a variety of categories can also help mitigate the pressure on consumers discretionary budgets during periods.

Speaker Change: A rising costs.

Jamie Iannone: Now let's turn to the key drivers of our Q1 results. Focus category GMV grew by over 6% in Q1 and now makes up more than one-third of our total volume globally. Collectibles was the largest contributor to growth for the second straight quarter as year-over-year GMV growth in trading cards accelerated for the ninth straight quarter. This growth was supported by continued innovation on behalf of trading card hobbyists, building on what we believe is the industry's leading value proposition. Our strategic partnership with collectors and its subsidiary, PSA, continues to yield benefits for our marketplace. The PSA storefront on eBay has already sold more than half a million trading cards since PSA launched a seamless integration, enabling its customers to consign cards on eBay in Q3 of last year.

Speaker Change: Now, let's turn to the key drivers of our Q1 results.

Speaker Change: Focus category GMB grew by over 6% in Q1, and now makes up more than one third of our total volume globally.

Speaker Change: Collectibles was the largest contributor to growth for the second straight quarter as year over year, GMB growth and trading cards accelerated for the ninth straight quarter.

This growth was supported by continued innovation on behalf of trading card hobbyists building on what we believe is the industry's leading value proposition.

Speaker Change: Our strategic partnership with collectors and its subsidiary PSA continues to yield benefits for our marketplace.

Speaker Change: The PSA storefront on ebay has already sold more than half a million trading cards since PSA launched a seamless integration, enabling its customers to consign cards on ebay in Q3 of last year.

Jamie Iannone: In January, we incorporated PSA data directly into the item page for graded trading cards, enabling potential buyers to see the full population of cards at each grade level, allowing them to more easily evaluate their rarity. This delivered on a key request from Hobbyist, and feedback to this change has been extremely positive. At the end of March, we launched an entirely new capability for buyers looking to purchase trading cards on eBay and have them shipped directly to PSA for grading. This saves the buyer time and effort spent on submitting grading paperwork themselves and reduces costs as one shipping leg is eliminated.

Speaker Change: In January we incorporated PSA data directly into the item page for greater trading cards, enabling potential buyers to see the full population of cards at each grade level, allowing them to more easily evaluate their rarity.

Speaker Change: This delivered on a key request from hobbyists and feedback to this change has been extremely positive.

Speaker Change: At the end of March we launched an entirely new capability for buyers looking to purchase trading cards on ebay and have them shipped directly to PSA for grading.

Speaker Change: This saves the buyer time and effort spent on submitting grading paperwork themselves and reduces costs as one shipping leg is eliminated.

Jamie Iannone: Grading services from trusted third parties like PSA are a key use case for trading card enthusiasts as grading helps them maximize the value of their collection.

Speaker Change: Trading services from trusted third parties like PSA are a key use case for trading card enthusiasts as grading help them maximize the value of their collections.

Jamie Iannone: Our fashion category generates more than $10 billion of GMV for eBay annually. Over the past year, we've significantly improved the customer experience for luxury fashion, preloved apparel, and streetwear enthusiasts. We launched AI-powered shopping experiences like Explore and Shop the Luxe. We expanded our inventory coverage for authenticity guarantee and tapped into new sources of supply in international markets. And, we continue to drive consideration of eBay in fashion and reinforce our value proposition of trust and selection through full-funnel marketing, including earned media reach through our cast of eBay influencers and partnership with Condé Nast.

Speaker Change: Our fashion category generates more than $10 billion of GMB for ebay annually over.

Speaker Change: Over the past year, we've significantly improved the customer experience for luxury fashion Preloved apparel and street wear enthusiasts, we launched AI powered shopping experiences like explore and shop the look we.

Speaker Change: We expanded our inventory coverage for authenticity guarantee and tapped into new sources of supply in international markets.

Speaker Change: And we continue to drive consideration of ebay in fashion and reinforce our value proposition of trust and selection through full funnel marketing, including earned media reach through our cost of ebay Influencers and partnership with <unk>.

Jamie Iannone: In Q1, we launched U.S. preloved apparel as a new focus category on eBay as we made significant improvements for sellers and buyers in this category. We continue to increase trust by introducing enhanced condition grading standards for apparel during Q1. We recently launched a new AI-powered discovery experience for fashion shoppers in the U.S. and U.K., which offers a more immersive and engaging browsing experience. We replaced static browse pages with endless feeds organized by theme or subcategory with dynamic visuals and interactive elements. These feeds progressively load content as users scroll down the page and are flexible in accommodating varying content formats, such as autoplay video, curated compositions, eBay Live events, promotions, and relevant eBay store.

Speaker Change: In Q1, we launched U S preloved apparel as a new focus category on ebay as we've made significant improvements for sellers and buyers in this category.

Speaker Change: We continue to increase trust by introducing enhanced condition grading standards for apparel during Q1, we.

Speaker Change: We recently launched a new AI powered discovery experience for fashion shoppers in the U S and U K, which offers a more immersive and engaging browsing experience.

Speaker Change: We replaced static browse pages with enlist feeds organized by theme or sub category with dynamic visuals and interactive elements.

Speaker Change: These feeds progressively load content as users scroll down the page and our flexible and accommodating varian content formats, such as auto play video curated compositions ebay live events promotions and relevant ebay storefronts.

Jamie Iannone: Throughout 2025, you'll see more innovation in fashion as we work towards solidifying our platform as the trusted destination for preloved branded fashion products, where customers can truly shop head to toe across a breadth of brands and price For more information, visit www.FashionEcstasy.com Our geospecific initiatives are another key building block for growth in 2025, most notably our consumer-to-consumer initiative in the UK. As a reminder, in Q4, we introduced a suite of new capabilities to upgrade the UK C2C experience, including significantly reducing friction to stimulate consumer selling. This initiative has materially improved our C2C GMV trends versus our pre-launch baseline and has outperformed our internal expectations to date.

Speaker Change: Throughout 2025, you'll see more innovation in fashion as we work towards solidifying our platform as the trusted destination for Preloved branded fashion products, where customers can truly shop head to toe across a breadth of brands and price points.

Speaker Change: Our Geo specific initiatives are another key building block for growth in 2000, and twenty-five most notably our consumer to consumer initiative in the U K.

Speaker Change: As a reminder, in Q4, we introduced a suite of new capabilities to upgrade the U K C to C experience, including significantly reducing friction to stimulate consumer selling this.

Speaker Change: This initiative has materially improved our CDC GM V trends versus our prelaunch baseline and has outperformed our internal expectations to date.

Jamie Iannone: We reached a major milestone in Q1, with the introduction of our UK buyer protection fee in February, which significantly narrowed the initial monetization gap. After introducing buyer-facing fees in the UK, C2C GMV growth and other KPIs have remained significantly higher than their pre-launch baseline. We continue to ramp our managed shipping offering in the UK, which dramatically simplifies shipping for C2C sellers while reducing costs and improving trust for buyers. In Q1, we enabled sellers to offer free shipping and added the flexibility for them to select carrier preferences. In Q2, we plan to add pick-up and drop-off capabilities that are very popular among UK consumers, as well as support for larger, bulkier items. In recent weeks, we began to gradually mandate adoption of managed shipping in the UK, starting with new and occasional C2C sellers.

Speaker Change: We reached a major milestone in Q1 with the introduction of our UK buyer protection fee in February which significantly narrowed the initial monetization gap.

Speaker Change: After introducing buyer facing fees in the U K CDC GMB growth and other kpis have remains significantly higher than their prelaunch baselines.

Speaker Change: We continue to ramp our managed shipping offering in the U K, which dramatically simplifies shipping for sea to sea sellers, while reducing costs and improving trust for buyers.

Speaker Change: In Q1, we enabled sellers to offer free shipping and out of the flexibility for them to select carrier preferences.

Speaker Change: In Q2, we plan to add pickup and drop off capabilities that are very popular among U K consumers as well as support for larger bulkier items.

Speaker Change: In recent weeks, we began to gradually mandate adoption of minutes shipping in the U K, starting with new and occasional sea to sea sellers at.

Jamie Iannone: At full scale, we expect managed shipping to close the remainder of the monetization gap in C2C, drive significant value for customers, and create a new source of revenue and operating income for eBay.

Speaker Change: At full scale, we expect minutes shipping to close the remainder of the monetization gap and see to see drive significant value for our customers and create a new source of revenue and operating income for ebay.

Jamie Iannone: Our teams continue to leverage artificial intelligence to make our marketplace more efficient and intuitive. At the end of Q1, we rolled out a simplified AI-powered listing flow to all C2C sellers in the U.S., U.K. and Germany, which integrates our magical listing technology and product knowledge graph. Sellers now start their listing with photos and a title, and we leverage generative AI to identify the exact product in our catalog or fill in relevant item aspects wherever possible, including the description. This listing flow also includes a more intuitive step-by-step process to review product details, pricing, and shipping information before finalizing the listing.

Speaker Change: Our teams continue to leverage artificial intelligence to make our marketplace more efficient and intuitive.

Speaker Change: At the end of Q1, we rolled out a simplified AI powered listing flow to all CDC sellers in the U S U K, and Germany, which integrates our magical listing technology and product knowledge graph.

<unk> now start their listing with photos and a title and we leveraged generative AI to identify the exact product in our catalog or filling relevant item aspects wherever possible, including the description.

Speaker Change: This listing flow also includes a more intuitive step by step process to review product details pricing and shipping information before finalizing the listing.

Jamie Iannone: This new listing tool is resonating well with sellers, as customer satisfaction rates are 90% or higher across each market, and it's also having a positive impact on our business. We've observed significant increases in completion rates and new and reactivated listers, while meaningfully reducing the average time spent on listing. We've also seen measurable increases in sold items and GMV per listing attempt. Our magical bulk listing tool also continues to drive powerful results for B2C sellers after launching in the U.S. for all categories. This tool has more than half the average listing time versus our previous book listing tool, giving sellers more time to run their business.

Speaker Change: This new listening tour is resonating well with sellers as customer satisfaction rates are 90% or higher across each market and it's also having a positive impact on our business. We've observed significant increases in completion rates and new and reactivated listers, while meaningfully reducing the average time spent on listing.

Speaker Change: We've also seen measurable increases in sold items and G. M D per listing attempter.

Speaker Change: Our magical bulk listing tool also continues to drive powerful results for BDC sellers after launching in the U S for all categories.

Speaker Change: This tool has more than half the average lifting time versus our previous book listing Tau, giving sellers more time to run their businesses.

Jamie Iannone: Magical Bulk Listing has already emerged as the most commonly used tool for listing sports trading cards, contributing to a significant increase in the average weekly listings in that category. In February, we expanded this tool to B2C sellers in the UK and Germany and have seen similar improvements in average listing time.

Speaker Change: Magical bulk listing has already emerged as the most commonly used tool for listing sports trading cards contributing to a significant increase in the average weekly listings in that category.

Speaker Change: In February we expand this tool to be to see sellers in the U K and Germany and have seen similar improvements in average listing times.

Jamie Iannone: We're focused on making listing on eBay as simple and as easy as possible because we believe it will unlock a significantly larger total addressable market in e-commerce. Advancements like Magical Listing have demonstrated significant progress toward that goal, and we will continue to invest in making listing even more seamless in the quarters ahead.

Speaker Change: We're focused on making listing on ebay as simple and as easy as possible because we believe it will unlock a significantly larger total addressable market and re commerce.

Speaker Change: Advancements like magical listing have demonstrated significant progress toward that goal and we will continue to invest in making listing even more seamless in the quarters ahead.

Jamie Iannone: Turning next to advertising. In Q1, our first party advertising revenue grew 14%. Active promoted listings increased sequentially and made up over 1.1 billion of the more than 2.3 billion total listings on eBay at the end of Q1. Over 3.7 million sellers adopted a single promoted listing product during Q1. Our first-party ad revenue growth remained broad-based during Q1. Promoted Listings' general ads were the largest contributor to year-over-year growth, as we launched several optimizations to make ads on the View Item page more personalized and relevant, driving increased engagement. Promoted off-site ads continue to gain adoption, and during Q1, we launched several improvements, like automated image optimization technology, to maximize impressions for a seller's list.

Speaker Change: Turning next to advertising in Q1, our first party advertising revenue grew 14% active promoted listings increased sequentially and made up over $1 1 billion of the more than $2 3 billion total listings on ebay at the end of Q1.

Speaker Change: Over $3 7 million sellers adopted a single promoted listing product during Q1, our first party AD revenue growth remained broad based during Q1.

Speaker Change: Promoted listings general ads were the largest contributor to year over year growth as we launched several optimization to make ads on our view item page more personalized and relevant driving increased engagement.

Speaker Change: Promoted offsite ads continue to gain adoption and during Q1, we launched several improvements like automated image optimization technology to maximize impressions for our sellers listings.

Jamie Iannone: Promotive Listings Priority Ads also contributed to growth as we increased coverage of cost-per-click units across more of our existing ad service.

Speaker Change: Promoted listings priority adds also contributed to growth as we increased coverage of cost per quickly units across more of our existing AD services.

Jamie Iannone: Within Payments and Financial Services, we continue to focus on adding new forms of payment on eBay to expand buyer choice, improve conversion, and optimize our payments mix. In April, we expanded our partnership with Klarna to offer buy now, pay later solutions to our U.S. customers. We're seeing encouraging early results with average order values on U.S. climate transactions more than three times the market average. In the UK, adoption of eBay Balance continues to ramp among C2C customers and has already captured a low single-digit share of wallet for UK GMB overall. In addition to carrying zero cost of payments, eBay Balance is driving incremental purchase behavior as it encourages sellers to spend more of their earnings on eBay.

Speaker Change: Within payments and financial services, we continue to focus on adding new forms of payment on ebay to expand buyer choice improve conversion and optimize our payments mix.

Speaker Change: In April we expanded our partnership with Clara offer buy now pay later solutions to our U S customers.

Speaker Change: We're seeing encouraging early results with average order values on U S carnett transactions more than three times the market average.

Speaker Change: In the U K adoption of ebay balance continues to ramp amongst CDC customers and that's already captured a low single digit share of wallet for U K G M B overall.

Speaker Change: In addition to carrying zero cost of payments ebay balance is driving incremental purchase behavior as it encourages sellers to spend more of their earnings on ebay.

Jamie Iannone: We also recently announced the addition of Checkout.com as a new payments partner. Additional acquiring partners make our payments platform more resilient and enable us to optimize our authorization rate. And importantly, they strengthen our ability to deliver fast, reliable, and frictionless payment experiences to our 134 million customers globally.

Speaker Change: We also recently announced the addition of checkout dot com as a new payments partner additional acquiring partners make our payments platform more resilient and enable us to optimize our authorization rates and.

Speaker Change: And importantly, they strengthen our ability to deliver fast reliable and frictionless payment experiences to our 134 million customers globally.

Jamie Iannone: In closing, in Q1, we delivered our fourth consecutive quarter of positive GMB growth amid ongoing uncertainty in the global economy. Our strategy is working and has put us on a path towards sustainable long-term growth.

Speaker Change: In closing in Q1, we delivered our fourth consecutive quarter of positive GMB growth amid ongoing uncertainty in the global economy. Our strategy is working and has put us on a path towards sustainable long term growth.

Jamie Iannone: Today, we also announce some changes to our leadership team.

Speaker Change: Today, we also announced some changes to our leadership team.

Jamie Iannone: This will be Steve's last earnings call with eBay. I want to personally thank Steve, as he has been an exceptional partner during a period of significant transformation. His leadership helped guide us through the uncertainty of the pandemic and laid the foundation for the strength and resilience we see in the business today.

Speaker Change: This will be Steve's last earnings call with ebay.

Speaker Change: Want to personally thank Steve as he has been an exceptional partner during a period of significant transformation.

Speaker Change: His leadership helped guide us through the uncertainty of the pandemic and laid the foundation for the strength and resilience, we see in the business today I am deeply grateful for his contributions and wish him the best.

Jamie Iannone: I am deeply grateful for his contributions and wish him the best.

Jamie Iannone: As Steve transitions, we're excited to welcome Peggy Alford as eBay's incoming CFO on May 12. Peggy brings more than 20 years of experience leading finance, operations, and global teams in the technology sector. Peggy has a proven track record of building strong organizations and driving operational excellence. Her leadership and expertise will be tremendous assets as we continue to position eBay for the future.

Speaker Change: As Steve transitions, we're excited to welcome Peggy Alford as ebay's incoming CFO on may 12th.

Speaker Change: He brings more than 20 years of experience, leading finance operations and global teams in the technology sector.

Speaker Change: Peggy has a proven track record of building strong organizations and driving operational excellence her leadership and expertise will be tremendous assets as we continue to position ebay for the future.

Jamie Iannone: In addition to the CFO change, eBay is evolving its leadership structure designed to fuel faster innovation, deepen cross-functional collaboration, and position the company for long-term growth in a rapidly evolving digital and AI-powered landscape. We are bringing together product and market teams into a more integrated, agile structure designed to enhance speed, alignment, and customer centricity across the organization.

Speaker Change: In addition to the CFO change ebay is evolving its leadership structure designed to fuel faster innovation deepen cross functional collaboration and position the company for long term growth in a rapidly evolving digital and AI powered landscape.

Speaker Change: We are bringing together product and market teams into a more integrated agile structure designed to enhance speed alignment and customer centricity across the organization.

Jamie Iannone: This new organization will be led by Jordan Sweetnam, Chief Commercial Officer.

Speaker Change: This new organization will be led by Jordan Sweetening, Chief commercial officer.

Jamie Iannone: We are also consolidating engineering into a single organization, reflecting a broader ambition to operate with greater speed and drive operational scale.

Speaker Change: We are also consolidating engineering into a single organization, reflecting a broader ambition to operate with greater speed and drive operational scale.

Jamie Iannone: This new combined engineering and technology organization will be led by Mazin Rawashte, our chief technology officer. I want to congratulate both Jordan and Mazin on their expanded role.

Speaker Change: This new combined engineering and technology organization will be led by Mazin reward day, our Chief Technology Officer, I want to congratulate both Jordan and Madden on their expanded roles.

Jamie Iannone: As part of this evolution, Eddie Garcia, Chief Product Officer, will be leaving eBay. I am deeply grateful to Eddie for his outstanding partnership and visionary leadership in shaping our product strategy, which has significantly advanced eBay's offerings and customer experience. He has built a world-class team and his legacy positions us well for future success.

Speaker Change: As part of this evolution, Eddie Garcia, Chief product officer will be leaving ebay I am deeply grateful to Eddie for his outstanding partnership and visionary leadership in shaping our product strategy, which has significantly advanced ebay's offerings and customer experience.

Speaker Change: He has built a world class team and his legacy positions us well for future success.

Jamie Iannone: Before passing to Steve, I want to reiterate my gratitude for his leadership and contributions over the last four years. Thank you, Steve.

Speaker Change: Before passing to Steve I want to reiterate my gratitude for his leadership and contributions over the last four years. Thank you Steve over to you.

Steve Priest: Over to you. Thank you, Jamie.

Steve: Thank you Jamie it's been a privilege to serve as <unk> CFO.

Steve Priest: It's been a privilege to serve as eBay's CFO. I'm proud of what we've accomplished. I'm incredibly optimistic about eBay's future prospects. I look forward to ensuring a successful transition with Peggy over the coming weeks.

Steve: I'm proud of what we've accomplished I'm incredibly optimistic about ebay's future prospects.

Steve: Forward to ensuring a successful transition with Peggy over the coming weeks.

Steve Priest: Now turning to our Q1 results. In the first quarter, we exceeded expectations across our key financial metrics. GMV grew nearly 2% to $18.8 billion. Revenue grew over 1% to $2.58 billion. who deserve a non-GAAP operating income of $771 million. and grew non-gap earnings per share by 10% to $1.38. In addition, we returned approximately $760 million to shareholders through repurchasing cash dividends.

Steve: Now turning to our Q1 results.

Steve: In the first quarter, we exceeded expectations across our key financial metrics.

Steve: <unk> grew nearly 2%.

Steve: $18 $8 billion.

Steve: Revenue grew over 1% to $258 billion.

Steve: We delivered non-GAAP operating income of $771 million.

Steve: non-GAAP earnings per share by 10% to one dollar and 38 cents.

Steve: In addition, we returned approximately $760 million to shareholders through repurchases and cash dividends.

Steve Priest: Let's take a closer look at our financial performance during the first quarter. Gross merchandise volume grew nearly 2% to $18.8 billion on an organic, FX-neutral basis. We continue to navigate an uneven demand environment, with shopping activity more muted in February and improving in March. Golden added roughly 30 basis points to total FX neutral volume growth in the quarter, while Foreign Exchange was nearly 130 basis points of headwind to spot GMB growth. Our growth rates in Q1 also include a net headwind of 50 basis points due to lapping the extra leap day in 2024, partly offset by the timing of Easter.

Steve: Let's take a closer look at our financial performance during the first quarter.

Steve: Gross merchandize volume grew nearly 2%.

Steve: Point $8 billion on an organic FX neutral basis.

Steve: We continue to navigate an uneven demand environment with shopping activity more muted in February and improving in March.

Steve: Gordon added roughly 30 basis points to total FX neutral volume growth in the quarter, while foreign exchange was nearly a 130 basis points of headwind to spot GMB growth.

Steve: Our growth rates. In Q1 also include a net headwind of 50 basis points due to lapping the extra leap day in 2024, partly offset by the timing of Easter.

Steve Priest: Focus categories were a key driver of GMV, growing over 6% in the quarter with positive growth contributions across trading cards, motors, parts and accessories, luxury goods, refurbished and apparel.

Steve: Focused categories were a key driver of DMV grew over 6% in the quarter with positive growth contributions across trading cards motors Pos accessories luxury goods refurbished on apparel.

Steve Priest: Moving on to our geographic performance. US GMV grew nearly half a point in the first quarter, driven by focus categories, in particular our trading cards business. As a reminder, we report GMV based on the location of the seller. If we were to look at volume based on the location of the buyer, U.S. growth was slightly higher than our international markets in aggregate. International GMV grew nearly 3% on an FX neutral basis in the quarter, while FX was nearly 250 basis points of headwind to spot growth. The macro environment in our international markets has been weaker than the U.S., particularly in Germany and the U.K.

Steve: Moving onto our geographic performance.

Steve: U S. <unk> grew nearly half a point in the first quarter driven by focused categories in particular are trading cards business.

Steve: As a reminder, we report Jim V based on the location of the seller.

Steve: If we were to look volume based on the location of the buyer U.

Steve: U S growth was slightly higher than our international markets in aggregate.

Steve: International <unk> grew nearly 3% on an FX neutral basis in the quarter, while FX was nearly 250 basis points of headwind to spot growth.

Steve: The macro environment in our international markets as being weaker than the U S, particularly in Germany, and the U K.

Steve Priest: However, the investments we made in C2C in both markets over the last two years have improved our growth trajectories compared to the prior baseline and helped mitigate these market-wide headwinds.

Steve: However, the investments, we made and see to see in both markets as the last two years have improved our growth trajectory as compared to the prior baseline and help mitigate these market was headwinds.

Steve Priest: Shifting to our biomet. A trailing 12 active buyers grew over 1% to $134 million in the first quarter. Enthusiast buyers were roughly 16 million and spend per enthusiast buyer grew slightly year over year and remained at over $3,100.

Steve: Shifting to our biometrics.

Steve: Trailing 12 month active buyers grew over 1% to 134 million in the first quarter.

Steve: Enthusiastic buyers, but roughly $16 million.

Steve: Spend per enthusiast buyer grew slightly year over year remainder over with $3100.

Steve Priest: Next I will discuss our revenue and take rates. We reported Q1 revenue of $2.58 billion on an organic, FX-neutral basis, representing over 1% growth and an acceleration from Q4. Foreign Exchange was a nearly 50 basis point headwind to spot growth. Our take rate was roughly 13.8%, increasing nearly 10 basis points year over year. A UK C2C initiative pressured overall take rate by approximately 30 basis points in Q1, which was offset by advertising and financial services contributions and an FX tailwind of 10 basis points. Total advertising revenue was $442 million in Q1, representing GMV penetration of nearly 2.4%.

Steve: Next I will discuss our revenue and take rate.

Steve: We reported Q1 revenue of $2.58 billion on an organic FX neutral basis, representing over 1% growth and an acceleration from Q4.

Foreign exchange was a nearly 50 basis point headwind to spot growth.

Steve: Our take rate was roughly 13.8%.

Steve: Creasing, nearly 10 basis points year over year.

Steve: Our U K C to C initiative pressured overall take rate by approximately 30 basis points in Q1, which was offset by advertising and financial services contributions.

Steve: FX tailwind of 10 basis points.

Steve: Total advertising revenue was $442 million in Q1, representing <unk> penetration of nearly two 4%.

Steve Priest: In Q1, we included ad revenue generated by off-platform marketplaces like Q10 and TCG Player in our total reported advertising revenue for the first time. We've included details on the prior year baselines for comparability. Excluding off-platform ads, total advertising revenue would have grown by 12% to $426 million. First party ads on the eBay platform grew over 14% to $418 million, while third party display ads declined by 41% to $8 million as we continue to deprecate these legacy ad units.

Steve: In Q1, we included AD revenue generated by off platform market places like to turn and TCG player and our total reported advertising revenue for the first time.

Steve: We have included details on the prior year baselines for comparability.

Steve: <unk> off platform adds total advertising revenue would have grown by 12%.

Steve: $426 million.

Steve: First party ads on the ebay platform grew over 14% to $419 million or third party display ads declined by 41%.

Steve: Millions of dollars as we continued to deprecate. These legacy argue this.

Steve Priest: Moving on to profitability. Non-Gap Gross Margin declined by over half a point, with headwinds from depreciation expense and traffic acquisition costs related to promoted off-site ads, partly offset by costs of payment sufficiency. As a reminder, we extended the useful life of our servers and networking equipment in 2024, which benefited our margins last year, but created a headwind for 2025. In Q1, this depreciation headwind pressured both gross and operating margins by nearly 70 basis points. Our non-GAAP operating margin was 29.8% in Q1, down half a point. In addition to depreciation, operating margin was pressured by our UK C2C initiative on a year-over-year basis, partly offset by 40 basis points of foreign exchange tailwind.

Steve: Moving on to profitability.

Steve: non-GAAP gross margin declined by over half a point with headwinds from depreciation expense and traffic acquisition costs related to promote it offsite ads, partly offset by cost of payments efficiencies.

Steve: As a reminder, we extended the useful life of our servers and networking equipment in 2024, which benefited our margins last year created a headwind for 2025.

Steve: In Q1, this depreciation headwind pressured both gross and operating margins by nearly 70 basis points.

Steve: Our non-GAAP operating margin was 29, 8% in Q1 down half a point.

Steve: In addition to depreciation operating margin was pressured by U K C to C initiative on a year over year basis, partly offset by 40 basis points of foreign exchange tailwind.

Steve Priest: And non-GAAP earnings per share grew 10% to $1.38. And GAAP earnings per share grew over 25% to $1.06. A higher GAAP earnings growth rate was primarily due to the lapping of investment losses a year ago, partly offset by a slightly higher GAAP tax rate this quarter.

Steve: Our non-GAAP earnings per share grew 10% to $1 38, and GAAP earnings per share grew over 25% to $1.06.

Steve: Our higher GAAP earnings growth rate was primarily due to the lapping of investment losses, a year ago, partly offset by a slightly higher tax rate this quarter.

Steve Priest: Sifting to our balance sheet and capital allocation. We generated free cash flow of $644 million in Q1 and held cash and non-equity investments of $6.2 billion at the end of the quarter. After paying down $800 million of senior notes during March, we had gross debt of $6.7 billion on our balance sheet. We repurchased $625 million of eBay shares during the first quarter at an average price of nearly $67. We also paid a quarterly cash dividend of $134 million in March, or $0.29 per share. Our equity investments were valued at over $1.1 billion at the end of Q1.

Steve: Shifting to our balance sheet and capital allocation.

Steve: We generated free cash flow of $644 million in Q1, and how cash and non equity investments of $6 $2 billion at the end of the quarter.

Steve: After paying down $800 million of senior notes due in March we had gross debt of $6 $7 billion on our balance sheet.

Steve: We repurchased $625 million of ebay shares during the first quarter.

Steve: Average price of nearly $67.

Steve: We also paid a quarterly cash dividend of $134 million in March or 29 cents per share.

Steve: Our equity investments were valued at over $1 1 billion at the end of Q1 the.

Steve Priest: The majority of this value is our private stake in Arulia, with approximately 8% ownership, valued at nearly $900 million.

Steve: The majority of this value is a private states in Virginia with approximately 80% ownership valued at nearly $900 million.

Steve Priest: Moving on to our outlook, as Jamie noted earlier, tariffs and other trade policy changes have created significant uncertainty for our sellers and buyers. Quarter to date, we have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at US customs in the near future. To account for a variety of scenarios in the remainder of the quarter, we are providing wider than usual guidance ranges for Q2. We expect GMV between $18.6 and $19.1 billion for the second quarter, representing FX-neutral growth between negative 1% and positive 2% year-over-year.

Steve: Moving onto our outlook.

Steve: As Jeremy noted earlier tariffs and other trade policy changes have created significant uncertainty for our sellers and buyers.

Steve: Quarter to date, we have observed healthy volume trends due to strengthen our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity of U S customs in the near future.

Steve: To account for a variety of scenarios and the remainder of the quarter.

Steve: Providing wider than usual guidance ranges for Q2.

Steve: We expect GM V between $18 six a $19 $1 billion for the second quarter, representing FX neutral growth between negative, 1% and positive 2% year over year.

Steve Priest: This includes an expected contribution of approximately 20 basis points from Golden and roughly 50 basis points of Headwind due to the timing of EC2. Based on current exchange rates, we estimate FX would represent roughly 180 basis points of tailwind to spot GMB growth. We forecast revenue between $2.59 and $2.66 billion in the second quarter, implying negative 1% to positive 2% total FX-neutral growth. Based on current exchange rates, we estimate FX would represent roughly 170 basis points of tailwind to spark revenue growth. On a sequential basis, we expect take rate to improve, driven by a full quarter of contribution from our UK C2C bioprotection fee and ongoing managed shipping ramp.

Steve: This includes an expected contribution of approximately 20 basis points from Golden and roughly 50 basis points of headwind due to the timing of Easter.

Steve: Based on current exchange rates, we estimate FX would represent roughly 180 basis points of tailwind to spot GMB growth.

Steve: Before cast revenue between $2 five nine to six $6 billion in the second quarter, implying a negative 1% to positive 2% total FX neutral growth.

Steve: Based on current exchange rates, we estimate FX would represent roughly a 170 basis points of tailwind to support revenue growth.

Steve: On a sequential basis, we expect take rate to improve driven by a full quarter of contribution from our UK seat to see buy protection fee and ongoing managed shipping ramp.

Steve Priest: We expect non-GAAP operating margin to be between 27% and 27.8% in the second quarter. We expect headwinds for managed shipping, the depreciation policy change, and M&A related expenses to be partly offset by an FX tailwind. We forecast non-gap earnings per share between $1.24 and $1.31 in the second quarter, representing year-over-year growth between 4% and 11%.

Steve: We expect non-GAAP operating margin to be between 27, and 27, 8% in the second quarter we.

Steve: We expect headwinds from managed shipping the depreciation policy change and M&A related expenses to be partly offset by an FX tailwind.

Steve: Before costs non-GAAP earnings per share between $1 24.

Steve: And $1 31 in the second quarter, representing year over year growth between four and 11%.

Steve Priest: Next, I'll share some perspectives on the full year. Based on the trends we have observed year to date, our folio commentary remains unchanged and contemplates a range of scenarios for tariffs and the continuation of an uneven demand environment we have been navigating for many quarters. We are planning our business around these key assumptions for 2025 and investing for the long term health of our marketplace. However, more severe outcomes for tariffs or a significant deterioration in the US macro environment could push us toward the lower end of our ranges or make it challenging for us to deliver on these targets.

Steve: Next I'll share some perspectives on the full year.

Steve: Based on the trends we have observed year to date are.

Steve: Our full year commentary remains unchanged and contemplates a range of scenarios with tariffs and the continuation of an uneven demand environment, we have been navigating for many quarters.

We are planning our business around these key assumptions for 2025 and investing for the long term health of our marketplace.

Steve: However, more severe outcomes with tariffs or a significant deterioration in the U S macro environment could push us towards the lower end of our ranges will make it challenging for us to deliver on these targets.

Steve Priest: For 2025, we expect to generate low single-digit GMV growth on an FX-neutral basis, driven by our focus categories, geospecific investments, and horizontal initiatives. We forecast revenue growth modestly higher than GMV for the full year on an FX-neutral basis driven by advertising, shipping, and financial services. We continue to expect non-gap operating income growth to be relatively in line with FX neutral revenue despite absorbing several unique headwinds to non-gap operating margin year over year. We forecast capital expenditures to be between 4% and 5% of revenue for the full year and expect our non-gap tax rate to remain stable at 16.5%.

Steve: The 2025, we expect to generate low single digit GMB growth on an FX neutral basis, driven by our focus categories.

Steve: Specific investments and horizontal initiatives.

Steve: Before cost revenue growth modestly higher than GM V for the full year on an FX neutral basis, driven by advertising shipping and financial services.

Steve: We continue to expect non-GAAP operating income growth to be relatively in line with FX neutral revenue. Despite absorbing several unique headwinds to non-GAAP operating margin year over year.

Steve: The forecast capital expenditures to be between four 5% of revenue for the full year unexpected our non-GAAP tax rate to remain stable at 16.5%.

Steve Priest: Our outlook for free cash flow remains unchanged. The core, we have a number of unique tax considerations resulting in 2025 tax payments of over $1 billion related to investment sales last year, repatriation tax, and timing of R&D credits. Excluding these unique tax items, normalised free cash flow is expected to be comfortably north of $2 billion. In regards to capital allocation, we are targeting share repurchases of at least $2 billion in 2025, while maintaining the flexibility to lean in opportunistically when appropriate.

Steve: Our outlook for free cash flow remains unchanged.

Steve: Because we have a number of unique tax considerations, resulting in 2025 tax payments of over $1 billion related to investment sales last year repatriation tax and timing of R&D credits.

Steve: Excluding these unique tax items normalized free cash flow is expected to be comfortably north of $2 billion.

Steve: With regards to capital allocation we are.

Steve: Targeting share repurchases of at least $2 billion in 2025, while maintaining the flexibility to lean in and Opportunistically when appropriate.

Steve Priest: Our board also declared a quarterly dividend of $0.29 per share for Q2 to be paid in June. Based on these assumptions, we still expect our non-GAAP earnings per share growth in the high single digits for 2025.

Steve: Our board also declared a quarterly dividend of <unk> 29 per share for Q2 to be paid in June.

Steve: Based on these assumptions, we still expect our non-GAAP earnings per share growth in the high single digits for 2025.

Steve Priest: In closing, our teams have done a tremendous job executing on our strategy, leading to a strong start to 2025. I'm proud of the strong financial foundation we've established together over the last four years as we reorientated the business towards sustainable long-term growth. It's been a true honour to work with such extraordinary people and serve this vibrant community. and I look forward to cheering on eBay's continued success.

Steve: In closing our teams have done a tremendous job executing on our strategy leading to a strong start to 2025.

Steve: I'm proud of the strong financial Foundation, we've established together over the last four years as you reorientate the business towards sustainable long term growth.

Steve: It's been a true honor to work with such extraordinary people and served its vibrant community.

Steve: And I look forward to sharing on ebay's continued success.

Operator: And with that, Jamie and I will now take your questions. We will now begin Q&A. For today's session, we'll be utilizing the raise hand feature. If you'd like to ask a question, simply click on the raise hand button at the bottom of your screen. If you have dialed in, please press star nine to raise hand and star six to unmute. Once you've been called on, please unmute yourself and begin to ask your question. Please limit to one question and one follow up before jumping back in the queue. Thank you.

Steve: And with that Jamie and I will now take your questions.

Steve: We will now begin Q&A for today's session, we'll be utilizing the raise hand feature if you will.

Steve: Can I ask a question simply click on the raise hand button at the bottom of your screen. If you have dialed in please press star <unk> to raise hand and star six one yet.

Steve: Once you've been called on please on mute yourself and begin to ask a question. Please.

Steve: Please limit to one question and one follow up before jumping back into queue. Thank you. We will now pause a moment to assemble the queue.

Operator: We will now pause a moment to assemble the queue.

Eric Sheridan: Our first question will come from Eric Sheridan with Goldman Sachs. Your line is open. Please go ahead. Thanks for taking the question. And I'll kick it off by saying thanks to Steve for all the help and always enjoyed all the interactions over the years. So thank you, Steve, and good luck going forward.

Speaker Change: Our first question will come from Eric Sheridan with Goldman Sachs. Your line is open. Please go ahead.

Eric Sheridan: Thanks for taking the question and I'll kick it off by saying thanks to Steve for all the help and always enjoyed all the interactions over the years. So thank you Steve and good luck going forward.

Eric Sheridan: In terms of looking out over the full year, I think the main question we're getting from investors right now with respect to the commerce landscape, and I would love to understand how you're thinking about it philosophically, or how you factored it into the forward commentary would be how to think about demand elasticity in an environment where pricing might be going up a lot, and how elements of prior period experiences might inform the way you brought that either to your commentary for this year or other ranges of probabilistic outcomes you're thinking about as we go through 2025.

Speaker Change: In terms of looking out over the full year I think the main question, we're getting from investors right now with respect to the commerce landscape, but I would love to understand how we view youre thinking about it philosophically or how you factored it into the forward commentary would be how to think about demand elasticity in an environment, where pricing might be going up a lot.

Eric Sheridan: And how elements of prior period experiences.

Eric Sheridan: The way you brought that either to your commentary for this year or other ranges of probabilistic outcomes, you're thinking about as we go through 2025. Thanks so much.

Jamie Iannone: Thanks so much.

Jamie Iannone: Yeah, Eric, I'll start. This is Jamie. So the macro environment, I think, remains uncertain and difficult to predict. But we've been contending with uneven demand for many quarters, which I think frames our Q1 results and our outlook in an even more positive light. I think as it relates to, you know, the overall demand elasticity in the macro environment, on a relative basis, you know, we're confident that eBay is in a strong position, as our vast global seller base can really leverage the CBT shipping solutions we have, and adaptive changes in trade policies, and we expect buyers to gravitate towards our non-new and seasoned inventory, especially during periods of consumer pressure.

Eric Sheridan: Yes, Eric I'll start this is Jamie so the macro environment, I think remains uncertain and difficult to predict but we've been contending with uneven demand for many quarters, which I think frames, our Q1 results and our outlook in a in an even more positive light I think as it relates to.

Eric Sheridan: The overall demand elasticity in the macro environment on a relative basis, we're confident that ebay is in a strong position as our vast global celebrates can really leverage the CBT shipping solutions, we have and adapt to changes in trade policies, and we expect buyers to gravitate towards our non new in season inventory, especially during periods.

Jamie Iannone: You know, to your question about prior periods, it's what we've seen before, which is, you know, at times where I think consumers are more uncertain, and are looking for a value, eBay tends to be more resilient, because of what we have on the marketplace. Over 40% of our goods now are used or refurbished, and that business is growing meaningfully faster than new goods on the marketplace. Frankly, we also see in prior periods that it's an opportunity for us to acquire new sellers onto the marketplace, because what it does is, you know, people are looking for value, they come out of the marketplace, and then they may need money to sell things, and eBay is a great environment for that.

Eric Sheridan: Consumer pressure.

Eric Sheridan: Your question about prior periods, it's what we've seen before which is at times, where I think consumers are more uncertain and theyre looking for a value ebay tends to be more resilient because of what we have on the marketplace over 40% of our goods now are used to refurbish and that business is growing meaningfully faster than the new goods.

Eric Sheridan: On the marketplace.

Eric Sheridan: Frankly, we also see in prior periods that it's an opportunity for us to acquire new sellers onto the marketplace because what it does is people are looking for value. They come out of the marketplace and then they may need money to sell things and ebay is a great isn't great environment for that so last thing I'd say relative to prior periods and we saw this.

Operator: So, last thing I'd say relative to prior periods, and we saw this during COVID, is, you know, because we have such a vast seller base, we tend to be a bit more, our sellers tend to be a bit more nimble, and adapt to changes a little bit more quickly, because there's no kind of, you know, their ability, they're smaller, they can be a bit more agile, and that's what we've seen in the past. Thank you.

Eric Sheridan: During Covid is.

Eric Sheridan: Because we have such a vast seller base, we tend to be a bit more our sellers tend to be a bit more nimble and.

Eric Sheridan: And adapt to changes a little bit more quickly because there's no kind of.

Eric Sheridan: They are building they are smaller they can be a bit more agile and that's what we've seen in the past.

Eric Sheridan: Thank you.

Nathan Feather: Our next question will come from the line of Nathan Feather with Morgan Stanley. Your line is open, please go ahead. Hey, everyone.

Speaker Change: Our next question will come from the line of Nathan <unk> with Morgan Stanley. Your line is open. Please go ahead.

Speaker Change: Hey, everyone and first off Steve its been great working with you. So looking forward to what's next.

Nathan Feather: And first off, Steve, it's been great working with you. So looking forward to what's next. You know, maybe just a lot of questions, especially on China tariffs and what the impact might be in a sustained basis. I guess, can you write some color on how big China based exporters are on eBay, at least in terms of the China to U.S. trade route, the potential to maybe shift some demand to inventory from other regions, and then any way to contextualize the potential sourcing risk for non-China based sellers who still source from that region. Thank you. Yeah, look, our business is not immune to the increased costs from tariffs and the friction associated.

Speaker Change: Maybe just a.

Speaker Change: A lot of questions, especially on China tariffs and what the impact might be on a sustained basis I guess he.

Speaker Change: Can you write some color on.

Speaker Change: How big China based exporters are on ebay in least in terms of the China to U S trade route.

The potential to maybe shift some demand to inventory from other regions and then any way to contextualize the potential sourcing risk for non China based sellers, who sell source from that thank you.

Speaker Change: Yeah look our business is not immune to the increased costs from tariffs and the friction associated.

Jamie Iannone: But we remain confident in our ability to support our community. Let me size things for you, Nathan, to just help a little bit there. Our greater China to U.S. quarter makes up about 5% of total GMV for us. And China overall is a little less than 10%. But about three quarters of that business of the 5% coming from China to the U.S. is forward deployed to the end markets. So it's already subject to tariffs and so wouldn't be subject to any changes in de minimis based on the cost of the items. On the other half of the inventory or the one quarter that's not forward deployed, about 50% of that uses a shipping solution that we've helped create, which is called Speedpack.

Speaker Change: But we remain confident our ability to support our community. Let me size things for you Nathan to just help a little bit there are greater China to U S quarter makes up about 5% of total GMB.

Speaker Change: For us in China overall is a little less than 10%, but about three quarters of that business of the 5% coming from China. The U S is forward deployed to the end markets. So it's already subject of tariffs and so wouldn't be subject to any changes in de minimis based on the cost of the items.

Speaker Change: The other half of the inventory or the one quarter. That's not forward deployed about 50% of that uses a shipping solution that we've helped create which is called speed pack and what that does is it really incorporates all of the tariff complexity and customers complexity right into the shipping solution. It makes it a lot easier.

Jamie Iannone: And what that does is it really incorporates all of the tariff complexity and customs complexity right into the shipping solution. It makes it a lot easier for the seller. And from the buyer perspective, they see full transparency and they're paying for that directly in checkout. And I suspect with incremental changes, we'll see even more sellers. It's been 50% for a while. We'll see even more sellers take advantage of the shipping solutions that we provide. I think overall on the marketplace level, we do see the benefit of having goods and inventory all over as we do see substitution across the marketplace.

Speaker Change: For the seller and from the buyer perspective, they see full transparency and theyre paying for that directly and checkout and I suspect you know with incremental changes, we'll see even more sellers, it's been 50% for a while we'll see even more sellers take advantage of the shipping solutions that we provide.

Speaker Change: I think overall on the marketplace level, we do see the benefit of having kind of a goods in inventory all over as we do see.

Speaker Change: Substitution across the.

Speaker Change: Across the marketplace and so that is available for buyers, but we also feel like the tools that we provided the sellers.

Nathan Feather: And so that is available for buyers. But we also feel like the tools that we provided to sellers in all of these shipping solutions, etc., provide great solutions. And buyers can ultimately decide if new quarters seem more attractive to them. Great. That's really helpful. Thanks, and congrats on the encouraging.

Speaker Change: And all of the shipping solutions et cetera.

Speaker Change: Provide great solutions and buyers can ultimately decide if new corridor seem more attractive to them.

Speaker Change: Okay. That's really helpful. Thanks, and congrats on the encouraging results.

Nikhil Devnani: Our next question will come from the line of Nikhil Devnani with Bernstein Research. Please go ahead. Hi there. Thanks for taking my question. And Steve, thanks for all your help. It's been great working with you.

Nikhil: Our next question will come from the line of Nikhil does <unk> with Bernstein Research. Please go ahead.

Nikhil: Hi, there thanks for taking my question and Steve. Thanks for all your help it's been great working with you.

Nikhil Devnani: With respect to advertising revenue, are you seeing any impact from tariffs on that portion of the business, particularly from your China-based merchants that maybe buy ads? And can you also speak broadly to the durability of this revenue stream, even through different macro environments? How deep are the auctions such that if one category of sellers might pull back, someone else steps in to plug the hole? How should we think about that dynamic?

Speaker Change: With respect to advertising revenue are you seeing any impact from tariffs on that portion of the business, particularly from your China based merchants that maybe buy ads and can you also speak broadly to the durability of this revenue stream even through different macro environments. How deep are the auctions such status if one category of sellers.

Speaker Change: Pull back someone else steps in to plug the hole, how should we think about that dynamic. Thank you.

Steve Priest: Thank you. Yeah, we have strong demand across the board for our advertising business, and we continue to drive kind of increasing penetration of the user base. You know, now over 3.7 million sellers have adopted a single ad product, Nikhil, and we have 1.1 billion live promoted listings out of our nearly 2.3. I would say, you know, we've seen no material impact on our advertising to date. We've seen strength across the board in our promoted listings general, our CPA product, our CPC-based product. And, you know, I talked a little bit on the call about promoted offsite and some of the new innovations that we have there from that perspective.

Speaker Change: We have strong demand across the board for our advertising business and we continue to drive kind of increasing penetration of the user base now over $3 7 million sellers have adopted a single AD product mckeel, and we have $1 1 billion lifeblood of listings out of our nearly 2.3 I would say we've seen no.

Speaker Change: A real impact on our advertising to date, we've seen strength across the board in our promoted listings general our CPA product are.

Speaker Change: Our CPC based product and I.

Speaker Change: I talked a little bit on the call about promoted off site and some of the new innovations that we have there from that perspective. So overall, we're pretty pleased with the performance of advertising in our AD demand is very distributed across a large celebration a large number of <unk>.

Steve Priest: So overall, we're pretty pleased with the performance of advertising. And, you know, our ad demand is very distributed across a large celebration, a large number of products. So we feel we feel good about the ongoing opportunity that we have in advertising.

Products. So we feel we feel good about the ongoing opportunity that we have in advertising.

Nikhil Devnani: Thanks, Jamie.

Thanks, Jamie.

Colin Sebastian: Our next question will come from Colin Sebastian with Baird. Please go ahead. All right, great. I appreciate the opportunity.

Speaker Change: Our next question will come from Colin Sebastian with Baird. Please go ahead.

Colin Sebastian: Alright, great I appreciate the opportunity.

Colin Sebastian: I guess, well, first, Steve, also been a pleasure working with you and wishing you all the best. Jamie, first off, a lot of attention, I think, is turned to the concept of exemptive commerce. And, you know, you guys are in front of us a bit with some of the tools you have and partnerships. But I'm curious, you know, in this suit, how you think ultimately consumer shopping behavior changes and the role of the e-commerce marketplace, the platform on hand, of if agents are doing more of the searching and buying on behalf of consumers.

Speaker Change: I guess well first.

Speaker Change: Steve also has been a pleasure working with you and wish you all the best.

Speaker Change: Jamie.

Speaker Change: Sort of attention I think his team with excellent J&J.

Speaker Change: <unk> you guys are in some of those a bit.

Speaker Change: <unk> has the tools and partnerships.

Speaker Change: I'm curious.

Speaker Change: How do you think ultimately consumer shopping behavior changes in the world and repayments multiple patients.

Speaker Change: If agents are doing more of the ships.

Speaker Change: It will be helpful.

Operator: And then, Steve, maybe on the outlet, I guess I'd be curious. Hey, Colin. Hey, Colin, just real quick. You came across pretty muffled in that, and I want to make sure I get your question right. Can you try again on the question there? Yeah, sorry, so hopefully you can hear me. I'm in transit, but I was just curious in the view on exempted commerce, and ultimately how that, Yeah, so I think I roughly got, you know, your questions around agentic commerce. What I'd say is, you know, of the of the pieces that we're building internally already, we feel great about the progress that we're making.

Steve: And then Steve maybe.

Speaker Change: Hey, guys.

Speaker Change: Colin Hey, Collin just real quick you came across pretty muscle in that and I want to make sure I get your question right.

Speaker Change: Can you try again on the question there.

Speaker Change: Hmm.

Speaker Change: You can hear me Adam tangent, but.

Speaker Change: Just curious in the Egencia.

Speaker Change: <unk>.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Yeah, So I think I roughly got your questions around agenda commerce.

Speaker Change: What I'd say is you know of the of the pieces that we're building internally already we feel great about the progress that we're making so if you look at let me take magical listings for example.

Jamie Iannone: So if you look at, let me take magical listings, for example, over 10 million unique sellers have used that product to create over 200 million listings. And that's generating, you know, several billion dollars of GMV. We continue to use agent technology across our marketing, across our customer support, etc. to really drive, you know, efficiencies and how we work. We've launched some new agentic tools in shop the look. This quarter, I talked about a new discovery platform that we've launched in fashion associated with AI. And we've also announced a number of kind of early tests that we're doing, one with open AI around exploring, making our inventory available to more shoppers with with the work that they're doing, as well as some small tests we haven't really talked about yet, that we're testing with our own agentic technology.

Speaker Change: Over 10 million unique sellers have used that product to create over 200 million listings.

Speaker Change: And that's generating several billion dollars of GMB, we continue to use agent technology across our marketing across our customer support et cetera to really drive.

Speaker Change: Efficiencies in how we work we've launched some new.

Speaker Change: Agenda tools and shop the look this.

Speaker Change: This quarter I've talked about a new discovery platform that we've launched in fashion.

Associated with AI.

Speaker Change: And we've also announced a number of kind of early tests that we're doing one with open AI around exploring making our inventory available to more shoppers.

Speaker Change: <unk>.

Speaker Change: With the work that they're doing as well as some small tests, we haven't really talked about yet that we're testing with our own agenda technology. So.

Jamie Iannone: So, you know, I think across the board, if you were inside this organization, it's more likely to ask, you know, which teams are not leveraging AI or how we not thinking about it in the customer experience, because at this point, it's pretty broad based in how we think about the leveraging the AI capabilities for both our customer experience, and in how we work.

I think across the board. If you were inside this organization, it's more likely to ask which teams are not leveraging AI or how are we not thinking about it in the customer experience because at this point, it's pretty broad based in how we think about the.

Speaker Change: Leveraging the AI capabilities for both our customer experience and in how we work.

Speaker Change: Yes.

Ross Sandler: Our next question will come from Ross Sandler with Barclays. Please go ahead. Great. Thanks, guys. Just going back to a previous question, so it sounds like the China quarter is 10% for China sellers who are kind of labeled, and then you've got 40% or over 40% secondhand, so that leaves kind of half the GMV U.S. or European or whatever the location of these other sellers may be. Do you have any sense of how much of those sellers' products do get sourced from China? I know it's probably a tough thing to figure out, but I'd just be curious if you guys ever looked at that.

Ross Sandler: Our next question will come from Ross Sandler with Barclays. Please go ahead.

Ross Sandler: Great. Thanks, guys, just going back to a previous question. So it sounds like the China quarters, 10%.

Ross Sandler: Four.

Ross Sandler: China sellers, who are kind of labeled.

Ross Sandler: And then you've got 40% or over 40% secondhand. So that leaves kind of half the GMB U S or European or whatever the location of these other sellers may be.

Ross Sandler: Do you have any sense of how much of those sellers products do get sourced from from China, and it was probably a tough thing to figure out but.

Ross Sandler: I'd just be curious if you guys ever looked at that.

Ross Sandler: And then I guess more broadly, you know, there's all these fears about consumer pullback that might happen or may not happen later this year. Your business is quite a bit different than the last time we've had any consumer weakness given the growth of collectibles and, you know, not just trading cards, but you've got more luxury. You've got, you know, sneakers. You've got a bunch of other larger categories of GMV. So I guess as you guys pencil out these scenarios, how do you see eBay holding up in a recession scenario this time around versus, you know, maybe other times in the past when some of these categories were a bit different?

Ross Sandler: And then.

Ross Sandler: More broadly.

Ross Sandler: Theres always fears about.

Ross Sandler: Consumer pullback that might happen or may not happen later this year your business is quite a bit different than the last time, we've had any consumer weakness given the growth of collectibles and they are not.

Ross Sandler: Not just trading cards, but you've got more luxury you've got.

Ross Sandler: Stegar's, you've got a bunch of other larger categories. The GMP, So I guess.

Ross Sandler: As you guys pencil out these scenarios.

Speaker Change: How do you see ebay.

Ross Sandler: Holding up.

Ross Sandler: In a recession scenario this time around versus maybe other times in the past one when some of these categories were bit different. Thank you very much.

Ross Sandler: Thank you very much.

Steve Priest: Hi Ross, Steve here. I'll pick up the first one and then I'll flip to Jamie to take the second question. You're right, so as Jamie reiterated earlier, about 5% of our global GMV goes from the Greater China to the US corridor. Your point about our used and refurbished inventory on the platform is just over 40% of everything we sell, which we see as a real competitive advantage and a strength as consumers are continuing to look for value in this environment. With regards to other listings across the overall platform, there is additional volume on eBay from US sellers who source products from Greater China.

Speaker Change: However, Steve here I'll pick up the first one and it all fits of Jive into a second question.

Speaker Change: Right. So as we as Jamie reiterated earlier about 5% of our global Janvey goes from the greater China to the U S. Colorado your points about.

Speaker Change: Used and refurbished inventory on the platform is just over 40% of everything we sell which we see as a real competitive advantage and the strength as consumers are continuing to look for value in this environment with regards to other.

Speaker Change: Listings across the overall platform there is additional volume.

Speaker Change: Ebay from U S sellers, who source products from greater China, and these sellers would need to navigate tariffs similar to our CBT sellers.

Jamie Iannone: And these sellers would need to navigate tariffs similar to our CBT sellers. And as you can imagine, we have contemplated a number of scenarios as we've sort of thought about our business and continue to plan our business. And this impact has been contemplated as we plan for the various tariff scenarios.

Speaker Change: As you can imagine we have contemplated.

Speaker Change: A number of scenarios as we saw some thoughts about our business and continue to plan our business and this impact has been contemplated as we plan for the various tariff scenarios Jeremy with regards to the second question. Yeah look at what I would say there Ross is that we're certainly not immune to impacted consumers when they have kind of.

Jamie Iannone: Jamie, with regard to the second question. Yeah, look, what I would say there, Ross, is that we're certainly not immune to, you know, impacted consumers when they have kind of, you know, less discretionary dollars to spend. But we are advantaged and more resilient because of the inventory that we have on the marketplace. And so, you know, consumers tend to come to us when they're looking for a value. And that really kind of, you know, resonates, you know, what we're providing. They come to us looking for used or refurbished, you know, and they're agile in terms of what I said.

Speaker Change: Less discretionary dollars to spend but we are advantaged in more resilient because of the inventory that we have on the marketplace and so consumers tend to come to us when they're looking for a value.

Speaker Change: And that really kind of.

Speaker Change: Resonates, what we're providing they come to us looking for used to refurbish.

Speaker Change: And their agile in terms of what I said, so you can imagine like you know parts and accessories sellers looking at more salvage opportunities and things like that.

Jamie Iannone: So you can imagine, like, you know, parts and accessories sellers looking at more salvage opportunities and things like that. The other thing I would say is that, you know, as our focus categories have grown, you know, there's often a difference between, you know, a higher income buyer and a lower income buyer. So when you look at the strengths of our business, whether you think that's, you know, handbags that we have that are coming from, you know, Italy or France or, you know, trading cards that are predominantly, you know, from the U.S., not only are they, you know, from kind of, you know, different sources of where they're manufactured, but importantly, you know, have less of an impact of elasticity versus the consumer.

Speaker Change: The other thing I would say is that you know as our focus categories have grown theres often a difference between a higher income buyer.

Speaker Change: And a lower income buyer. So when you look at the strengths of our business, whether you think that you know handbags that we have that are coming from Italy, or France or trading cards that are predominantly from the U S. Not.

Speaker Change: Not only are they you know if I'm kind of different different sources of where of where they're manufactured but importantly have less of an impact of elasticity versus the consumer. So overall, it's why we're glad that we pivoted to non new in season five years ago I think it makes our platform.

Jamie Iannone: So overall, it's why we're glad that we pivoted to non-new and seasoned five years ago. I think it makes our platform, you know, more resilient than otherwise would be. And the things that we've been leaning into have really helped create kind of more diversification, more shipping solution options, et cetera.

Speaker Change: More resilient than otherwise would be and the things that we've been leaning into have really helped create kind of more diversification more shipping solution options et cetera.

Speaker Change: Thank you.

Deepak Mativanan: Our next question will come from Deepak Mativanan from Cantor Fitzgerald. Please go ahead. Great, thanks for taking the questions. So Jamie, given the mix of pre-owned and refurb on the platform now, does it make sense to leverage this competitive advantage that you currently have during this time and kind of make a more aggressive push to build top of the funnel and awareness to sort of like gain a permanent competitive edge? And then also, somewhat related to that, with all these macro shifts, are you seeing any changes in competitive landscape now with maybe some other subscale players who were previously investing aggressively scaled down that's helping the business now?

Speaker Change: Our next question will come from Deepak <unk> from Cantor Fitzgerald. Please go ahead.

Speaker Change: Great. Thanks for taking the questions. So Jamie given the mix of reorder flow on the platform now does it make sense to leverage this competitive advantage that you currently have during this time and kind of make a more aggressive push to build top of the funnel and awareness to subtly gain a prominent competitive edge and then also.

Speaker Change: Somewhat related to that with all these macro shifts are you seeing any changes in competitive landscape now with maybe some of the subscale players who are previously investing aggressively scaled down that's helping the business now thanks so much.

Deepak Mativanan: Thank you so much. Yeah, just to make sure I got your question, because of our level of pre-loved, you said, pre-loved and used on the platform, or what did you say? Yeah, pre-owned under default goods on the platform, right. Yeah, yeah, look, we are leaning in a lot behind that because we do think it's a unique opportunity. We're doing both on the buying side and on the selling side. So if you look at our full funnel marketing, it's not only leaning into kind of the, you know, the breadth of inventory and the trust that you have on the platform.

Speaker Change: Yeah, just just to make sure I got your question here.

Speaker Change: Cause of our level of Preloved, you said preloved and used on the platform or what did you say, yes brown leather goods.

Speaker Change: Goods on the platform right. Yeah, Yeah look we are leaning in a lot behind that because we do think it's a unique opportunity we're doing both on the buying side and on the selling side. So if you look at our full funnel marketing, it's not only leaning into kind of the the breadth of inventory and the trust that you have on the platform.

Jamie Iannone: But for example, in the UK and Germany right now, we're really pushing the sell message of sell on eBay, because it's a great time to bring new sellers onto the marketplace. And what we find is that when we get a buyer to become a casual seller, they end up buying more. So we're definitely leaning in from that perspective on all of the marketing that we're doing. And, you know, we believe that there's a significant TAM out there in C2C that we're going after. So if you look at the average household, they have $3,000 to $4,000 of inventory that could be sold on eBay, and less than 20% of that is online on the platform.

Speaker Change: But for example in the UK and Germany, right now, we're really pushing the sell message of sell on ebay because it is a great time to bring new sellers onto the marketplace and what we find is that when we get a buyer to become a casual seller. They end up buying more so we're definitely leaning in from that perspective on all of the marketing network.

Speaker Change: And we believe that Theres, a significant tam out there and see to see.

Speaker Change: That we're going after so if you look at the average household they have three to $4000 of inventory that could be sold on ebay and less than 20% of that is online on the platform and so the whole vision that we have with magical listing is really making it so simple to unlock all of that inventory onto the platform.

Jamie Iannone: And so the whole vision that we have with Magical Listing is really making it so simple to unlock all of that inventory onto the platform, because, you know, we write the description, we fill out all the item specifics. In fact, the stat that I talked about on the call is really interesting. Even though the Magical Listing technology is relatively new in bulk, so we just kind of built this capability to have bulk Magical Listing, already, you know, the majority of our listings are coming in for trading cards on that platform. And that's, you know, really, really compelling.

Speaker Change: We write the description we fill out all the items specifics in fact, the stat that I talked about on the call is really interesting even though the magical listing technology is relatively new.

Speaker Change: New in bulk so we just kind of build this capability to have both magical listing already the majority of our listings are coming in for trading cards.

Speaker Change: On that platform and that's really really compelling and so we're going to continue to push kind of new innovations. There we're leaning into fashion in a big way, we just rolled out a new discovery platform for Preloved fashion think about that as an endless feed now that we've built sizing and we built styles on the platform.

Jamie Iannone: And so we're going to continue to push kind of new innovations there. We're leaning into fashion in a big way. We just rolled out a new discovery platform for pre-loved fashion. Think about that as an endless feed now that we've built sizing and we've built styles on the platform. And that's something that we're going to be continuing to lead into 2025. You know, relative to competition, this is where scale is an advantage. We're able to acquire buyers and leverage them across a lot of different categories. So, you know, let's take a watch buyer. If you come in and buy a watch over $500, you'll end up buying $5,000 in watches, but you'll end up buying more than $5,000 across the rest of the categories, which is really compelling as well.

Speaker Change: And that's something that we're going to be continuing to lead into into 2025.

Speaker Change: Relative to competition. This is where scale is an advantage, we're able to acquire buyers and leverage them across a lot of different categories. So, let's let's take a watch buyer have you come in and buy a watch over $500 Youll end up buying $5000 in watches, but you'll end up by more than $5000 across.

Speaker Change: The rest of the categories, which is really compelling as well.

Jamie Iannone: We, you know, we're looking at in our vehicles performance, you know, we just launched this new relationship with Caramel. And not only would you see buyers coming into that, but then those buyers end up buying thousands of dollars. So I do think we benefit from our global scale, from the global supply and demand that we have. You know, and as Steve likes to talk about, we have a strength of our financial model, which gives us the capacity to invest in these time periods to really make sure we're capturing opportunities for eBay.

Speaker Change: We you know we're looking at.

Speaker Change: In our in our vehicles performance, we just launched this new relationship with caramel and not only would see buyers coming into that but then those buyers end up buying.

Speaker Change: A dollar so I do think we benefit from our global scale from the global supply and demand that we have.

Speaker Change: And as Steve likes to talk about we have a strength of our financial model, which gives us the capacity to invest.

And in these time periods to really make sure we're capturing opportunities for ebay.

Shweta Kajuria: Our next question will come from Shweta Kajuria with Wolf Research. Please go ahead. Thanks a lot for taking my question. I very much appreciate it. How would you characterize, I mean, your business is very scaled, it is global, so how would you characterize the health of consumer today from your vantage point? And are there any leading indicators that you're seeing across different geographies that you can point to where you think you may have seen some pull forward in demand so far, and there could be some risk, or you may not have seen that. And you think that consumer generally is healthy.

Speaker Change: Our next question will come from West, Texas area with Wolfe Research. Please go ahead.

Speaker Change: Thanks, a lot for taking my questions I very much appreciate it how would you characterize I mean your business is very scaled it is global.

Speaker Change: How would you characterize the health of consumer today from your vantage point and are.

Speaker Change: Are there any leading indicators that you're seeing across different geographies that you can point to where you think you may have seen some pull forward in demand so far and there could be some risk or you may not have seen that and you.

Speaker Change: Do you think that consumer generally is.

Shweta Kajuria: We'd love to hear your thoughts. Thank you.

Speaker Change: Healthy I would love to hear your thoughts thank you.

Steve Priest: Hey Shweta, Steve here. Thank you for the question. It's clear that the macro environment clearly remains uncertain and difficult to predict, but we have been operating in a rather choppy environment for the last number of quarters as we've managed through this. I think I'd carve it in between US and international. Demand in the US continues to be more resilient, and we've seen healthy volume trends so far in the second quarter, and that's informed us in the second quarter guide and the colour that we continue to provide for the full year, assuming that there's no discernible change in that underlying environment.

Speaker Change: As Steve here. Thank you for the question, it's clear that the macro environment remains uncertain and difficult to predict but we have been operating in a rather choppy environment for the last number of quarters as we manage through this call.

Speaker Change: And between U S and international.

Speaker Change: Demand in the U S continues to be more resilient and we've seen healthy volume trends so far in the second quarter and that's informed us in terms of how we thought about.

Speaker Change: Second quarter guide and the color that we've continued to provide for the full year.

Speaker Change: Assuming that there's no discernible change in that underlying environment, I think as it pertains to Europe, and particularly Germany and the UK.

Steve Priest: I think as it pertains to Europe and particularly Germany and the UK, leading indicators in the UK like consumer confidence remain depressed. There continues to be concerns over cost of living and inflation, which in our second largest market is obviously quite pertinent. And then when I think about Germany, it continues to remain tough. Consumer confidence was impacted by recent elections and geopolitical events. And I think it's fair to say that German consumers are now concerned about the spillover effects of US trade policy, and its government is now predicting a third consecutive year of zero GDP growth.

Speaker Change: Leading indicators in the U K like consumer confidence remained depressed.

Speaker Change: It continues to be concerns over cost of living and inflation.

Speaker Change: Which is our second largest market is obviously quite pertinent and then when I think about Germany continues to remain tough consumer confidence was impacted by recent elections and geopolitical events.

Speaker Change: It's fair to say that German consumers are now concerned about the spillover effects of U S trade policy and as governments is not predicting a third consecutive year of zero GDP growth. So that's the general overall dynamic that we're seeing but having said that.

Steve Priest: So that's the general overall dynamic that we're seeing. But having said that, we do continue to execute. And I think it's a real testament to the work the company is doing, the investments that we're driving forward, and the fact that we now have four consecutive quarters of positive GMB growth, that we continue to do that. And so this continued softness, I suppose, in the overall macro environment is contemplated in the guide, assuming that there's no discernible change in the macro environment. Thanks a lot, Steve. Just a quick follow up in given the resiliency of your platform, what are your thoughts on leaning more aggressively on marketing spend to gain greater share?

Speaker Change: We do continue to execute and I think it's a real testament to the work. The company is doing the investments that we are driving forward and the fact that we now have four consecutive quarters of positive GMB growth.

Speaker Change: That will continue to do that and so this continued softness I suppose in the overall macro environment is contemplated in the guide.

Speaker Change: Assuming that there is no discernible change in the macro environment.

Speaker Change: Thanks, a lot Steve and just a quick follow up given the resiliency of your platform and what are your thoughts on that.

Speaker Change: I'm leaning more aggressively in marketing spend to gain greater share.

Steve Priest: I think we've continued to get the balance right. We have continued to lean in to drive operational efficiencies across the platform. We're investing for the long term future of the company and to stimulate the long term sustainable growth to GMV. And I really think about all the cost factors that we have across the company. Marketing is one of them. And I think we've been very effective in those investments over recent quarters. Thanks a lot, Steve.

Speaker Change: I think we've continued to have got the balance right. We have continued to lean into and to drive operational efficiencies across the platform. We are investing for the long term future of the company and to stimulate this a long term sustainable growth to Gen V and I really think about what the cost factors that we have about across the company marketing is one of them.

Speaker Change: And I think we've been very effective in those investments over recent quarters.

Nancy: Thanks Nancy.

Tom Champion: Our next question will come from Tom Champion with Piper Sandler. Please go ahead. Hi, good afternoon. Jamie, I think you mentioned over 2 billion listings. I think that's up mid-teens year over year. And maybe that's the second year in a row that it's up that magnitude. I'm just curious what you'd attribute that to and maybe any broader implications of that.

Speaker Change: Our next question will come from Tom Champion with Piper Sandler. Please go ahead.

Tom Champion: Hi, good afternoon.

Nancy: In.

Speaker Change: Jamie I think he mentioned over 2 billion listings I think that's up mid teens year over year, and maybe thats. The second year in a row there it's up.

Nancy: That magnitude I'm just curious what you.

Nancy: Attribute that to and maybe any.

Nancy: Broader implications of that.

Tom Champion: And then for Steve, wish you the best. It has been great working with you.

Steve: And then for Steve.

Steve: We wish you the best it has been great working with you.

Jamie Iannone: I wanted to go back to your comments on the linearity of the quarter. I think you said March might have been better than February and just Curious what you'd attribute that to. I don't know if it's just the leap year comp, but just any additional thoughts there would be helpful. Thank you. Yeah, thanks for the question, Tom. I'll start on the selling side. Yeah, you're correct on 2.3 billion listings. And the majority of that is based on the strength of what we've been seeing from our overall kind of selling experiences, and specifically our C2C seller base.

Speaker Change: I wanted to go back to your comments on the linearity of the quarter. I think you said March might have been better than February and just.

Speaker Change: Curious what you would attribute that to I don't know if its just the leap year comp, but just.

Speaker Change: Just any any additional thoughts there would be helpful. Thank you.

Speaker Change: Yes. Thanks for the question Tom I'll start on the on the selling side. Yes, you are correct on $2 3 billion listings and the majority of that is based on the strength of what we've been seeing from our overall kind of selling experiences and specifically our CDC seller base. So listings had been growing at double digits on the platform.

Jamie Iannone: So listings have been growing at double digits on the platform since 2023. Every quarter, we've been growing the 12-month active seller count on the platform. And the majority of our sellers by count are C2C sellers, and small businesses make up about 70% of that. And it's really the work that we've been doing to lean in to make the C2C value proposition stronger and take out all the friction. So think about it as the combination of all the work that we're doing in magical listing, and there's a bunch of work around that with how you can much more easily enhance your images, etc.

Speaker Change: Since 2023 every quarter, we've been growing the active 12 months active seller count on the platform and the majority of our sellers by counter or see to see sellers and small businesses make up about 70% of that and it's really the work that we've been doing to lean in to make the CDC value proposition stronger and take out all the free.

Speaker Change: Sure.

Speaker Change: Think about it is the combination of all the work that we're doing in magical listing and Theres a bunch of work around that with how you can much more easily enhanced images et cetera, it's taking friction out of the shipping experience.

Jamie Iannone: It's taking friction out of the shipping experience. In the U.S., we do that through the eBay International Shipping. In China, we do that with our Speedpack solutions. In other markets, like in UK, we're rolling out managed shipping, which makes it really easy for a C2C seller in that market to be able to ship their goods. So by taking all of that friction, by leaning into the work that we've done in UK and Germany around our C2C business, and the marketing that we're doing, really kind of talking about the C2C value proposition for consumers is really resonating.

Speaker Change: In the U S. We do that through the ebay international shipping in China, We do that with our speed pack solutions.

Speaker Change: In other markets like in U K, we're rolling out managed shipping, which makes it really easy for our CDC seller in that market to be able to ship their goods. So by taking all of that friction by leaning into the work that we've done in UK and Germany around our CTC business and the marketing that we're doing really kind of.

Speaker Change: Talking about the <unk> value proposition for consumers is really resonating and that is helping us both drive sellers on the platform as well as drive the listing count in a really healthy way, Steve maybe you want to talk about the second question, Yeah, Hey, Tom It's good to speak to you I think it's probably fair to see sorry, we saw some uneven demand, particularly as we are.

Jamie Iannone: And that's helping us both drive sellers on the platform, as well as drive the listing count in a really healthy way.

Steve Priest: Steve, maybe you want to talk about the second question? Yeah. Hey, Tom. Good to speak to you. I think it's probably fair to say we saw some uneven demand, particularly as we came into the year. January and February saw some unevenness and a slightly softer environment, particularly in February. And then we've seen healthy momentum during March and April. Not only do we think maybe some of that is a little bit of a pull forward, as we talked about in our prepared remarks, but candidly, also the underlying health of the platform. As we talked about, the health of the focus category momentum that we saw, 6% up year over year and 6% faster than the rest of the platform.

Steve: Coming into the year January and February saw some unevenness, a slightly softer environment, particularly in February and then we've seen healthy momentum during March and April.

Speaker Change: Not only do we think maybe some of that is a little bit of a pull forward as we talked about in our prepared remarks, but candidly also the underlying health of the platform.

Speaker Change: As we talked about the health of.

Speaker Change: The focus category momentum that we saw.

Speaker Change: 6% up.

Speaker Change: Year over year, and 6% faster than the rest of the platform and so little bit of unevenness across the early part of the year, but really pleased with the continued execution that we're seeing from the teams.

Steve Priest: And so a little bit of unevenness across the early part of the year, but really pleased with the continued execution that we're seeing from the teams. Thank you.

Speaker Change: Thank you.

Nick Jones: Our next question will come from Nick Jones with JMP Securities. Great, thank you. Thank you for taking the questions.

Speaker Change: Our next question will come from Nick Jones with JMP Securities.

Speaker Change: Great. Thank you. Thank you for taking the questions.

Nick Jones: Just curious, as you kind of lean into fashion in 2025, can you speak to maybe your appetite, kind of for M&A or buyers build, you know, there are some kind of private competitors out there, you made acquisitions, like TCG player to bolster that category, and it's been going quite well. So can you maybe talk through kind of appetite for M&A, the funnel and just how you're thinking about that's that kind of focus category this year. Thank you. Yeah, look, I would say nothing has changed. We think about the build, buy, and partner framework that we've had in place for a while, and that's served us really well.

Nick Jones: Just curious as you kind of lean into fashion in 2025 can you speak to maybe your appetite.

Nick Jones: Kind of for M&A or buy versus build there are some kind of private competitors out there you made acquisition like PSEG player to bolster that category and it's been going quite well. So could you maybe just talk through kind of appetite for M&A, the funnel and just how youre thinking about.

Speaker Change: Does that kind of focus category. This year. Thank you.

Speaker Change: Yeah look I would say nothing has changed we think about the build buy and partner framework that we've had in place for a while and.

Speaker Change: And that served us really well you.

Jamie Iannone: You brought up TCG Player, and I'll just talk about the framework that we've used in trading cards. In that case, we have a partnership with Collectors Universe, which is the owner of PSA, and we launched another great new capability there for collectors where now if I buy an ungraded trading card on the platform, I can actually, with one click, send that directly into PSA to be graded, whereas before, I'd have to wait to get it shipped to me. I would have to then retype in all the information about those cards into the PSA form, send them in, a massive benefit.

Speaker Change: You brought up TCG player and I'll just talk about the framework that we've used in and trading cards in that case, we have a partnership with collectors universe, which is the owner of PSA and we launched another great new capability. There for collectors were now if I buy an upgraded trading card on the platform.

Speaker Change: Can actually.

Speaker Change: With one click send that directly into PSA to be graded, whereas before I'd have to wait to get it shipped to me I would have to then re type a and all the information about those cards into the PSA form send them in.

Jamie Iannone: So that's a partner example just in collectibles. On the buy side, we have both TCG Player, which has been performing very well, as well as Golden Auctions, and that's really helped us accelerate certain capabilities. And then on the build side, we've obviously built a lot. I talked about magical bulk listings that we're using and how that's driving the majority of business that we have or of listings that we have in that category. So we continue to look at opportunities to accelerate our capabilities. We look at in a disciplined way, how do we think about build, buy, and partner?

Speaker Change: Massive benefit so that's a partner example, just in collectibles on the buy side we have.

Speaker Change: Both TCG player, which has been performing very well as well as Gordon auctions.

Speaker Change: And that's really helped us accelerate certain capabilities and then on the build side you know, we've obviously built a lot I talked about magical bulk listings.

Speaker Change: We're using and how that's driving the majority of.

Speaker Change: Business that we have are of listings that we have in that category. So we continue to look at opportunities to accelerate our capabilities.

Speaker Change: We look at in a disciplined way how do we kind of think about build buy and partner.

Jamie Iannone: You mentioned the fashion category. That's an example where we've done interesting things, right? We've done an acquisition in that space with Serta Logo, which is a company out of Milan that helps with digital authentication of fashion products. They're helping build digital product passports with leading brands, which leads to one-click reselling on eBay, which is beneficial, and that's a nice long-term benefit. We're partnering with folks like the Vogue and a cast of influencers to really get the message out about the amazing fashion inventory that we have on eBay. You think about influencers like Margarita Massoni or Emma Chamberlain.

Speaker Change: <unk> in the fashion category. That's an example, where we've done interesting things right. We've done an acquisition in that space with sort of logo, which is a company out of Milan that helps with digital authentication of fashion products.

Speaker Change: It's they're helping build digital product passports with leading brands, which leads to kind of one click reselling on ebay, which is benefit beneficial and that's a nice long term benefits, we're partnering with folks like the Vogue.

Speaker Change: In a cast of Influencers to really get the message out about the amazing fashion inventory that we have on on ebay and you think about influencers like Margherita Missoni or Emma Chamberlain.

Jamie Iannone: And so we're applying a similar playbook to all of our categories, which is really focusing on what in the build, buy, partner makes sense for that category and how do we accelerate the transformation. And we're excited by what we're seeing in pre-loved fashion and collectibles and the work that we've done in PSP&A with the recent acquisition there. We're going to continue to follow the same exact playbook.

Speaker Change: And so we're applying a similar playbook to all of our categories, which is really focusing on what in the build by partner makes sense for that category and how do we accelerate the transformation and we're excited by what we're seeing in pre loves fashion and collectibles.

Speaker Change: And the work that we've done in <unk> with the recent acquisition there and we continue to follow the same exact playbook.

Ygal Arounian: Really helpful, thank you.

Speaker Change: Really helpful. Thank you.

Ygal Arounian: Our next question will come from Ygal Arounian with Citi. Please go ahead. Hey good afternoon guys.

Speaker Change: Our next question will come from <unk> with Citi. Please go ahead.

Speaker Change: Oh, Hey, good afternoon guys.

Ygal Arounian: Also just want to echo all the good working with you Steve and you know you've always been really helpful and maybe just just to continue kind of on the de minimis thoughts for a second with particularly with Timu and Sheehan stepping back materially on a marketing spend and you know think that it would have one of the largest impacts, if not the largest, on the de minimis rules. Is that an opportunity for you guys to think that can be a potential tailwind and can you talk about if you're seeing any changes in your marketing channels and CPCs or if there's you know an incremental opportunity there?

Speaker Change: Also just want to echo all the.

Speaker Change: Good working with you Stephen.

Speaker Change: It's been really helpful and.

Speaker Change: Maybe just.

Speaker Change: Just to continue kind of on the de Minimis.

Speaker Change: Thoughts for a second.

Speaker Change: Particularly with chemo and Sheehan stepping.

Speaker Change: Stepping back materially on.

Speaker Change: On our marketing spend in.

Speaker Change: I think they would have one of the largest impacts its not the largest on the de Minimis rules is that an opportunity for you guys. I think that can be a potential tailwind and can you talk about if youre seeing any changes in.

Speaker Change: And new marketing channels, and Ctc's or if there is.

Jamie Iannone: Thank you. Yeah, you know, we're constantly looking on a daily basis about a maximize the ROI of our marketing span, I'd say a couple things is, one is, you know, we were impacted because they, when they came in, they are spending a significant amount, especially in the US market, because so much of our traffic is organic on the platform. And so it's really a, you know, less of an impact on our business. You know, when you look at the products that they're selling, it's, you know, a really immaterial GMB overlap, we move away from the low ASP items a while ago, as we strategically focused on non new in season, on focus, focus categories, etc.

Speaker Change: Incremental opportunity there. Thank you.

Speaker Change: Yes, we're constantly looking on a daily basis that to maximize the ROI of our marketing spend and I'd say a couple of things is one is we were less impacted because they when they came in.

Speaker Change: Spending a significant amount, especially in the U S market because so much of our traffic is organic on the platform and so it's really a you know less.

Speaker Change: Less of an impact on our business when you look at the products that they are selling it.

Speaker Change: Really immaterial GMB overlap, we moved away from the the low ASP items, a while ago as we strategically focused on non new in season on.

Jamie Iannone: I would say overall, our marketing ROI has been healthy, near to date, but nothing really to call out.

Speaker Change: On focus.

Speaker Change: Focus categories et cetera, I would say overall, our marketing ROI has been healthy year to date, but nothing really to call out.

Jamie Iannone: Other than, you know, in addition to the dynamics of the marketplace, we're continuing to find ways to use AI for our marketing as well. So we're starting to incorporate AI into CRM, and how we're communicating with our customers in a completely different way. So that's also helping drive the ROI of our marketing span. And, you know, we continue to lean in opportunistically where we think there's an opportunity.

Speaker Change: Then you know in addition to the dynamics of the marketplace, we're continuing to find ways to use AI for our marketing as well. So we're starting to incorporate AI into CRM and how we're communicating with our customers in a completely different way. So that's also helping drive the ROI of our marketing spend and we continue.

Speaker Change: Lean and Opportunistically, where we think theres an opportunity.

Operator: Operator, can we do one last question, please?

Speaker Change: Can we do one last question please.

Lee Horowitz: Yes, your final question will come from Lee Horowitz with Deutsche Bank Research. Please go ahead. Great. Thanks for thanks for squeezing me in here. So maybe following up on Nikhil's question earlier, I guess while you haven't seen any material impact to add revenue to date, presumably a lot of your sellers have stocked up and thus they're not seeing any cost pressures.

Speaker Change: Yes. Your final question will come from Lee Horowitz with Deutsche Bank Research. Please go ahead.

Lee Horowitz: Great. Thanks for squeezing me in here. So maybe following up on <unk> question earlier, I guess, while you haven't seen any material impact to add revenue to date, presumably a lot of your sellers have stocked up and unless theyre not seeing any cost pressures I guess, how are you thinking and contextualize it de risks to advertising revenue going forward in a world where.

Steve Priest: I guess how are you thinking and contextualizing the risks to advertising revenue going forward in a world where China tariffs say remain above 50% and those sellers are going to see some substantial pressure on gross margins, if not potentially go out of business? We've been really pleased with the continued momentum, Lee, that we've seen on our ads business. We've obviously continued to have multiple levers with multiple products in the ad space, and we've seen momentum and strength from quarter to quarter. Q1 was a good reflection of that. And as we always said, we continue to see a path to 3% of GMV across the overall ad side of things.

Lee Horowitz: China tariffs say remain above 50% and those sellers are going to see some substantial pressure on gross margins if not potentially go out of business.

Lee Horowitz: We have been really pleased with the continued momentum that we've seen our ads business. We've obviously continued to have multiple levers with multiple products in that space and we've seen momentum and strength.

Lee Horowitz: From quarter to quarter, Q Q1 was a good reflection of that.

Lee Horowitz: And as we've always said we can.

Lee Horowitz: Continue to see a path to sort of 3% of <unk> across the whole rollout side of things, we do have a truly global platform.

Steve Priest: We do have a truly global platform, and we've seen success not only through the greater China sellers, but across other geographies as well. And so this has been a good revenue vector for us at eBay, and we expect to continue to do that. So I'm pretty comfortable with where we're sitting. And as we've talked about contemplating various scenarios, we've contemplated the economics associated with the current environment in the colour that we've provided for the folio today.

Lee Horowitz: And we've seen success not only through the greater China sellers, but across our other geographies as well and so you know.

Lee Horowitz: This has been a good revenue vector for us the ebay and we expect to continue to do that so I'm pretty comfortable with where we're sitting and as we've talked about contemplating various scenarios. We've contemplated the economics associated with the kind of environment in the color that we've provided for the full year today.

Lee Horowitz: Understood. And Steve, echo all the comments as well. Great work with you.

Speaker Change: Understood and Steve alcohol accounts as well as great working with you and maybe just one follow up just.

Lee Horowitz: Maybe just one follow up, just, you know, category by category, you know, the color on some of the used good merchandise on the platform, and how much, how defensive maybe the platform may be over time is helpful, but maybe focusing on the collectibles part of your business. We get a lot of questions on that. I guess, how are you guys thinking about what may happen to that piece of the business through any broader macro softness? You know, has that business expanded such that it will not be impacted as much as it maybe has been in the past?

Lee Horowitz: Category by category.

Lee Horowitz: Color on some of the used good merchandise from the platform and how much how defensive move as a platform may be over time is helpful. But maybe focusing on the collectibles part of your business. We got a lot of questions on that I guess, how are you guys thinking about what may happen to that piece of the business through any broader macro.

Lee Horowitz: Softness.

Lee Horowitz: As that business has expanded such that it will not be impacted as much as it maybe has been in the past just any thoughts on how collectibles may react to a broader consumer slow down would be helpful. Thanks, So much.

Jamie Iannone: Just any thoughts on how collectibles may react to a broader consumer slowdown would be helpful.

Jamie Iannone: Thanks so much. Yeah, look, we're really pleased with the trading cards growth. It grew healthy double digits year on year in Q1 and growth accelerated for the ninth straight quarter. And we just continue to innovate for hobbyists on the platform. You know, the the relationship that I talked about before with PSA and making that easier, the inverse of that is already live today, which is if I get a card graded, it's one click to have that resell on the platform where we're making it really easy. Magical listing has been a huge opportunity for us. eBay Live has been compelling for us in the collectible card space.

Speaker Change: Yes look we're really pleased with the trading cards growth. It grew healthy double digits year on year in Q1 and growth accelerated for the ninth straight quarter and we just continue to innovate for hobbyists on the platform.

Speaker Change: The relationship that I've talked about before with PSA in making that easier.

Speaker Change: The inverse of that is already live today, which is if I get a card graded it's one click to have that we sell on the platform, where we're making it really easy magical listing has been a huge opportunity for us ebay live has been compelling for us and the collectible card space and we're seeing nice uptake, while it's still early days, we've been enhancing our seller.

Jamie Iannone: And we're seeing, you know, nice uptake while it's still early days. We've been enhancing our seller dashboard. We build case break technology into eBay Live, et cetera. And we feel really good about kind of the all the investment that we've made to make that business strong.

Speaker Change: Dashboard, we built case brake technology into ebay live et cetera.

Speaker Change: And.

Speaker Change: We feel really good about kind of the all the investment that we've made to make that business strong.

Jamie Iannone: Well, you know, when you look at when you look at the overall business, you know, obviously there's different fluctuations in the business over time. What I feel really good about, Lee, is that the growth in trading card volumes that we've seen in recent quarters has been mostly driven by sold item growth, not just ASP, which signals, you know, the recent strength is more sustainable than, for example, the surge we saw in 2001, which was more ASP driven. So we're going to continue to invest in that category. We feel really good about sorry, the surge in 2021 that we saw with with ASP.

Speaker Change: When you look at when you look at the overall business.

Lee Horowitz: Obviously, there's different fluctuations in the business over time, what I feel really good about Lee is that the growth in trading card volumes that we've seen in recent quarters has been mostly driven by sold item growth not just ASP.

Lee Horowitz: Which signals the recent strength is more sustainable than for example, the surge we saw in 2001, which was more ASP driven so we're going to continue to invest in that category. We feel really good about sorry, the surge in 2021 that we saw with ASB.

Jamie Iannone: We feel really good about the underlying business, what we've built and the capabilities for collectors and enthusiasts and the new capabilities like eBay Live that we're bringing to that that overall category on the platform.

Lee Horowitz: We feel really good about the underlying business, what we've built and the capabilities for our collectors and enthusiasts and the new capabilities like ebay live that we're bringing to that that overall category on the platform.

Operator: Helpful caller, thanks so much. Thanks.

Speaker Change: Helpful color. Thanks, so much.

Lee Horowitz: Thanks.

Operator: Thank you for joining.

Lee Horowitz: Thank you for joining this concludes today's call you may now disconnect.

Operator: This concludes today's call.

Operator: You may now disconnect.