American e-commerce company eBay has announced a 2% increase in revenue for the first quarter (Q1) of the fiscal year 2024 (FY24), reaching $2.55bn from $2.510bn in Q1 FY23.  

During the quarter, eBay's advertising revenue saw a significant jump, with its first-party advertising products generating $370m - a 30% increase on an as-reported basis and a 28% rise on an FX-neutral basis [in which measures are taken to eliminate the effect of foreign exchange (FX) volatility].

The company’s gross merchandise volume (GMV) for the period stood at $18.6bn, a 1% increase on an as-reported basis from Q1 FY23. 

eBay's GAAP [generally accepted accounting principles] net income from continuing operations fell by 23% to $439m in Q1 FY24 from $569m in Q1 FY23. 

This was reflected in the company’s earnings per share (EPS), which decreased by 19% to $0.85 from $1.05 in Q1 FY23. 

Its non-GAAP net income from continuing operations improved, increasing by 8% to $648m in Q1 FY24, with EPS rising 13% to $1.25.  

GAAP and non-GAAP operating margins were reported at 24.7% and 30.3% respectively. 

eBay also demonstrated strong cash flow, generating $615m in operating cash flow and $472m in free cash flow in Q1 FY24.  

The company continued to return value to shareholders, repurchasing $499m in shares and paying out $139m in cash dividends, totalling $638m. 

During the quarter, the retailer expanded its services by including luxury apparel in its consignment offering.  

eBay CEO Jamie Iannone said: "eBay's Q1 results marked a strong start to 2024 as we continue to make progress toward our goal of sustainable GMV growth.  

"We believe our accelerating pace of innovation is fundamentally changing the selling and buying experience on eBay, generating better outcomes for customers, increasing productivity across our organisation and ultimately driving more value for shareholders." 

Looking ahead to the second quarter, eBay anticipates revenue to be between $2.49bn and $2.54bn, with diluted GAAP EPS expected to range from $0.76 to $0.81.