eBay (EBAY 32.85, -1.01) is down 3.0% in pre-market after its slim bottom-line beat was overshadowed by cautious guidance for the second quarter.
The online marketplace operator reported above-consensus first quarter earnings of $0.49 per share on a 3.7% year-over-year increase in revenue to $2.22 billion, which was just ahead of market expectations.
The company reaffirmed its guidance for the fiscal year, expecting earnings between $1.98 and $2.03 per share. However, some softness is expected in the second quarter, which helps explain the pre-market weakness in the stock. The company expects to generate below-consensus second quarter earnings between $0.43 and $0.45 per share.
First quarter gross merchandise volume increased 2.0% year-over-year to $20.90 billion.
StubHub gross merchandise value increased 6.0% year-over-year to $916 million and StubHub revenue grew 18.0% year-over-year to $210 million. Integration of the Ticketbis business contributed to strength in international markets. Classifieds revenue rose 7.0% to $199 million with notable strength in Germany.
eBay's global active buyer count increased by two million to 169 million during the first quarter. This drove the increase in revenue and gross merchandise volume.
Operating margin declined to 30.0% in the first quarter from 33.4% one year ago.