eBay Inc (NASDAQ: EBAY) stock fell over 9.06% on 29th October, 2020 (as of 10:50 am GMT-4; Source: Google finance) after the company posted lower than expected results for the third quarter of FY 20 compared to its peers despite people staying at home due to the COVID-19 pandemic and taking to online shopping. Gross merchandise volume in marketplace was 21% to $25 billion. Active buyer grew more than 183 million, globally, which represents an increase of 5%. Organic revenue grew faster than volume, which represents an increase of 26% due to payments and advertising. The migration made significant progress in Q3 and as different buyers and sellers simplified end-to-end experience. The company exited the quarter with over 340,000 sellers migrated. During the third quarter eBay managed payment turnover 20% up on-platform volume. The company had only informed sellers that the company is expanding managed payments to France, Italy and Spain, in early 2021 and the company will begin to a migrate consumer sellers in the fourth quarter in the US. The company remains on track and expect to complete the vast majority of the transition by the end of next year. Overall, the company has reported Non-GAAP net income from continuing operations of $604 million. The company has generated $716 million of operating cash flow and $584 million of free cash flow from continuing operations.
Moreover, the transfer of Classifieds data center is on track to be completed in Q1 and 2021 subject to getting all regulatory approvals. Further, during the period the company Repaid $500 million of 3.250% senior fixed rate notes due 2020, and redeemed the remaining outstanding balance of $421 million on our 2.875% senior fixed rate notes due in 2021.
EBAY in the third quarter of FY 20 has reported the adjusted earnings per share of 85 cents, while adjusted revenue growth of 25 percent to $2.61 billion in the third quarter of FY 20.
eBay expects fourth-quarter revenue to be in the range of $2.64 billion to $2.71 billion, above analysts’ estimate of $2.54 billion, according to IBES data from Refinitiv. EBay also raised its full-year sales outlook to be in the range of $10.04 billion and $10.11 billion. The forecast excludes the classifieds business, which eBay in July agreed to sell to Norway’s Adevinta in a $9.2 billion deal. The company plans to deliver $2 billion in revenue and $500 million in operating income on annual basis by 2022.