Earnings call · eBay Wed Oct 28, Saidwire live coverage archive https://saidwire.com/archive/earnings-ebay-oct28 STORY (final version) eBay guides Q4 revenue up 7%-9% as take rate slips; cites 9% workforce cut and Depop surge Executives said live commerce and Depop are driving growth as they flagged lower take rates, a workforce reduction and a moderating trading cards business heading into 2027. eBay Inc. forecast fourth-quarter revenue of $3.19 billion to $3.24 billion, up 7% to 9% year over year on an FX-neutral basis, and said take rate pressure will cause gross merchandise volume to outpace revenue, as executives walked analysts through a third quarter in which GMV grew nearly 16% to $23.2 billion. FOURTH-QUARTER OUTLOOK AND WORKFORCE CUT Chief Financial Officer Peggy Alford said eBay expects fourth-quarter GMV of $23.7 billion to $24.1 billion, or 12% to 14% growth on a total FX-neutral basis and about 8% to 10% organically. Depop is expected to add four percentage points to GMV growth and two points to revenue growth. Non-GAAP operating income is forecast to grow 6% to 10%, implying a margin of 25.7% to 26.2%, and non-GAAP earnings per share are guided to $1.48 to $1.53, up roughly 5% to 9%. Alford said last week's announced workforce reduction of approximately 9% is meant "to better align our talent and resources, streamline our operations and help create the capacity required to invest in our highest growth initiatives." She said the company still targets roughly $2 billion in stock repurchases for the full year, and its board declared a quarterly dividend of 31 cents per share, payable in December. THIRD-QUARTER RESULTS Third-quarter GMV grew nearly 16% to $23.2 billion on an FX-neutral basis, or 13% organically. Revenue rose 13% to $3.21 billion, or 11% organically. Non-GAAP operating income climbed 11% to $843 million, and non-GAAP earnings per share rose nearly 12% to $1.51. GAAP earnings per share were $1.11. Free cash flow was $749 million, and the company returned nearly $830 million to shareholders through buybacks and dividends. Overall take rate fell 20 basis points year over year, which Alford attributed to faster growth in eBay Live and consumer-to-consumer sales, category and average selling price mix shifts, and the inclusion of Depop. She named three factors behind faster GMV than revenue growth in the fourth quarter: Depop's lower take rate, the shift of UK managed shipping to a net revenue model, and ongoing mix shifts. U.S. GMV grew 22% organically, while international GMV grew nearly 4% organically. LIVE COMMERCE, DEPOP AND COLLECTIBLES CEO Jamie Iannone said eBay Live had another record quarter, with a multibillion-dollar annualized GMV run rate and growth "well into the triple digits." He said live sellers generated roughly twice as much GMV on the core marketplace as they sold in live events over the trailing 12 months. Depop's U.S. GMV more than doubled year over year on a pro forma basis in its first quarter with eBay. Iannone said Depop reached 11 million trailing-12-month active buyers, up from 9 million, and 5 million active sellers. Combined, eBay and Depop generated about $9 billion in U.S. fashion GMV over the trailing 12 months, growing in the mid-20% range. Collectibles remained the largest growth contributor, though U.S. growth decelerated moderately as eBay lapped strong prior-year comparisons. Alford said the fourth-quarter outlook reflects tough comparisons in trading cards and bullion, and that 2027 planning assumes trading card growth "will naturally moderate." BUYERS, ADVERTISING AND AI Trailing-12-month active buyers grew 4% to 147 million on a pro forma basis including Depop and Ties, but just over 1% excluding them. U.S. active buyers grew 6% organically. Advertising revenue rose 16% to $607 million, and first-party ads grew 16% to $575 million. Asked about AI agents, Iannone said referral traffic from them is "very, very small today" but brings new and reactivated buyers at a higher rate than comparable channels. He said AI listing tools are already contributing to marketplace growth. Alford said 2027 planning assumes healthy growth in GMV, revenue, operating income and earnings per share, with take rate and margins varying by quarter based on business mix. BULLETINS 5:33:52 PM ET EBAY Q3 GMV GREW 13% TO MORE THAN $23 BILLION; REVENUE GREW 11% TO $3.2 BILLION 5:34:40 PM ET EBAY Q3 NON-GAAP OPERATING INCOME GREW 11%, NON-GAAP EPS GREW NEARLY 12% 5:35:22 PM ET EBAY: Q3 FOCUS CATEGORY GMV GREW 24%; TOTAL FX NEUTRAL GMV GROWTH NEARLY 16% 5:35:58 PM ET EBAY: Q3 C2C AND RECOMMERCE GMV GREW ~20%, NOW 72% OF TOTAL GMV EXCLUDING DEPOP 5:36:46 PM ET EBAY: TCGPLAYER TRAILING 12-MONTH GMV TOPS $1 BILLION FOR FIRST TIME; GOLDIN RECORD GMV QUARTER 5:38:10 PM ET EBAY: AUTHENTICITY GUARANTEED SURPASSED 20 MILLION CUMULATIVE ITEMS INSPECTED IN JULY 5:41:46 PM ET EBAY: DEPOP US GMV, MAUS, SOLD ITEMS MORE THAN DOUBLED YOY PRO FORMA IN Q3, BEAT EXPECTATIONS 5:43:10 PM ET EBAY: Q3 GLOBAL C2C GMV GREW MORE THAN 20%, HEALTHY DOUBLE-DIGIT GROWTH IN US, UK, AUSTRALIA 5:43:52 PM ET EBAY: MAGICAL LISTING AI NOW AVAILABLE TO ALL NEW, REACTIVATED LISTERS IN SIX MAJOR MARKETS 5:46:40 PM ET EBAY: EBAY LIVE GMV GROWTH STAYED WELL INTO TRIPLE DIGITS YOY, SIMILAR TO RECENT QUARTERS 5:47:22 PM ET EBAY: INTL SHIPPING LAUNCHED IN UK, GERMANY; UK EIS UP TO 30% CHEAPER THAN PRIOR PROGRAM 5:48:46 PM ET EBAY: COMPLETED US MANAGED SHIPPING ROLLOUT TO NEW LISTERS; DOUBLE-DIGIT % CUT IN LISTING TIME 5:49:28 PM ET EBAY: BEGINS LIMITED SELLER DROP-OFF TEST IN SEVERAL LARGE US METRO AREAS IN Q4 5:50:16 PM ET EBAY: 47% OF SURVEYED CONSUMERS NOW BUY SECONDHAND AT LEAST MONTHLY, UP FROM 35% LAST YEAR 5:50:58 PM ET EBAY: 89% OF SURVEYED CONSUMERS EXPECT TO SPEND SAME OR MORE ON SECONDHAND IN 2027 5:51:40 PM ET EBAY Q3 NON-GAAP EPS $1.51, UP NEARLY 12% YOY; NON-GAAP OP INCOME $843M, UP 11% 5:52:22 PM ET EBAY Q3 GMV $23.2B, UP NEARLY 16% YOY FXN; 13% ORGANIC FXN; REV $3.21B, UP 13% FXN 5:53:04 PM ET EBAY: Q3 CAPITAL RETURNED TO SHAREHOLDERS NEARLY $830M VIA REPURCHASES, DIVIDENDS 5:53:46 PM ET EBAY: Q3 FOCUS CATEGORY GMV GREW 24%; C2C, E-COMMERCE EACH GREW GMV MORE THAN 20% 5:54:34 PM ET EBAY: US GMV GREW 22% ORGANIC; DEPOP US GMV MORE THAN DOUBLED YOY PRO FORMA 5:55:16 PM ET EBAY: INTL GMV GREW NEARLY 4% YOY ORGANIC FXN; FX A 60 BASIS POINT HEADWIND TO SPOT GROWTH 5:55:58 PM ET EBAY: TTM ACTIVE BUYERS UP 4% TO 147M PRO FORMA; US ACTIVE BUYERS UP 6% ORGANIC 5:56:40 PM ET EBAY: ENTHUSIAST BUYER SPEND ~$3,700 TTM; U.S. ENTHUSIAST BUYERS UP 9%; 16M ENTHUSIASTS 5:57:28 PM ET EBAY: Q3 REVENUE UP 11% ORGANIC FXN; DEPOP ADDED NEARLY 2 PTS; FX 70 BPS TAILWIND 5:58:10 PM ET EBAY: Q3 TOTAL ADVERTISING REVENUE $607M, UP 16% YOY; 1P ADS UP 16% TO $575M 5:58:52 PM ET EBAY: Q3 TAKE RATE DOWN 20 BPS YOY ON EBAY LIVE, C2C GROWTH, MIX SHIFTS, DEPOP 5:59:34 PM ET EBAY: Q3 NON-GAAP GROSS MARGIN 73.1%, UP 60 BPS YOY; NON-GAAP OP INCOME $843M, UP 11% 6:00:16 PM ET EBAY: 6 MILLION SELLERS ADOPTED A PROMOTED LISTING PRODUCT IN Q3; ~2.7B LISTINGS EX-DEPOP 6:01:04 PM ET EBAY: Q3 NON-GAAP EPS $1.51, UP NEARLY 12% YOY; GAAP EPS $1.11 6:01:40 PM ET EBAY: Q3 FREE CASH FLOW $749M; BOUGHT BACK ~$690M OF SHARES AT ~$106 AVG; DIVIDEND $0.31/SHR 6:02:22 PM ET EBAY: Q4 GMV SEEN $23.7B-$24.1B INCL DEPOP; ORGANIC GROWTH ~8%-10%, TOTAL FXN 12%-14% 6:03:46 PM ET EBAY: Q4 REVENUE SEEN $3.19B-$3.24B; TOTAL FXN GROWTH 7%-9%, ORGANIC 5%-7%; DEPOP 2 PTS 6:04:28 PM ET EBAY: Q4 NON-GAAP OP INCOME GROWTH SEEN 6%-10%; OP MARGIN 25.7%-26.2% 6:05:52 PM ET EBAY: Q4 NON-GAAP EPS SEEN $1.48-$1.53; IMPLIES GROWTH ~5%-9% YOY 6:06:34 PM ET EBAY: ANNOUNCED ~9% WORKFORCE REDUCTION LAST WEEK; TARGETS ~$2B FULL-YEAR BUYBACKS 6:07:16 PM ET EBAY: 2027 PLANNING FOR HEALTHY YOY GROWTH IN GMV, REVENUE, NON-GAAP OP INCOME AND EPS 6:07:58 PM ET EBAY: 2027 PLAN ASSUMES TRADING CARDS GROWTH MODERATES; CAPITAL RETURN TARGET 90%-100% OF FCF 6:08:40 PM ET EBAY: 2027 SEES MODEST NET INTEREST INCOME HEADWINDS; NON-GAAP TAX RATE SEEN RELATIVELY STABLE 6:11:34 PM ET EBAY: VEHICLES BUSINESS GROWING AT TRIPLE-DIGIT RATE, HIGH-VALUE TRANSACTIONS 6:13:46 PM ET EBAY: LIVE SELLERS GENERATE ~2X GMV ON CORE MARKETPLACE VS WHAT THEY SELL IN LIVE EVENTS 6:16:16 PM ET EBAY: DEPOP US GMV, MAUS, SOLD ITEMS MORE THAN DOUBLE YOY IN Q3; ACTIVE BUYERS 11M VS 9M 6:16:58 PM ET EBAY: DEPOP HAS 5M ACTIVE SELLERS; BUYERS SPEND 70% MORE ON CORE AFTER ENGAGING WITH LIVE 6:18:22 PM ET EBAY: MAGICAL LISTING NOW IN SIX MAJOR MARKETS; AUSTRALIA SEES 30% MORE LISTINGS PER ATTEMPTER 6:22:40 PM ET EBAY: EBAY, DEPOP GENERATED ~$9B US FASHION GMV OVER TRAILING 12 MONTHS, GROWING MID-20S% YOY 6:23:22 PM ET EBAY: Q3 US C2C GMV GREW FASTER THAN OVERALL US EBAY GMV 6:24:04 PM ET EBAY: Q3 ADVERTISING REVENUE UP 16% YOY, 15% ON PRO FORMA BASIS 6:28:22 PM ET EBAY: PCGS COIN AUTHENTICATION LAUNCHED AUGUST, ROLLED OUT TO ALL SELLERS IN SEPTEMBER 6:29:04 PM ET EBAY CEO: AVERAGE HOUSEHOLD HAS $4,000 OF STUFF THAT COULD BE ONLINE, LESS THAN 20% IS ONLINE 6:29:52 PM ET EBAY: Q3 PRO FORMA TTM ACTIVE BUYERS UP 4% TO 147M INCL DEPOP, TIES; OVER 1% EXCL THEM 6:30:34 PM ET EBAY: Q3 US ACTIVE BUYERS UP 6% ORGANIC; US ENTHUSIAST BUYERS UP 9%, GLOBAL UP OVER 2% 6:31:34 PM ET EBAY: ENTHUSIAST BUYER SPEND ~$3,700 PER BUYER, RISING QUARTER OVER QUARTER FOR SEVERAL YEARS 6:32:22 PM ET EBAY: ACCESS TO EBAY CARRIER RATES HAS LOWERED DEPOP SHIPPING AND PARCEL RATES 6:33:04 PM ET EBAY: BELIEVES AGENTIC AI TRAFFIC WILL BE LARGELY INCREMENTAL TO EBAY; VERY SMALL TODAY 6:33:46 PM ET EBAY: 85% OF TRAFFIC ORGANIC; ENTHUSIAST BUYERS OVER 70% OF GMV POSTS (quotes verbatim; each shows when the words were said and when we drafted it) eBay CEO Jamie Iannone said third-quarter gross merchandise volume grew 13% to more than $23 billion. "Gross merchandise volume grew by 13% to more than $23 billion," he said. said 5:33:22 PM ET · drafted 5:34:13 PM ET eBay CEO Jamie Iannone said third-quarter revenue "grew 11% to $3.2 billion." He said key financial measures exceeded consensus expectations and the high end of guidance ranges. said 5:33:28 PM ET · drafted 5:36:04 PM ET eBay said TCGplayer "surpassed $1 billion in trailing 12 month GMV for the first time." eBay called it part of its off-platform collectibles marketplaces. said 5:36:34 PM ET · drafted 5:38:14 PM ET eBay said Depop's gross merchandise volume growth outperformed expectations in Q3, with U.S. GMV, active users and items sold "more than doubling year over year on a pro form a basis." said 5:39:58 PM ET · drafted 5:40:24 PM ET eBay said it is testing individual Depop listings directly in eBay search results for relevant queries. "We are currently testing the next phase of our inventory integration," an executive said on the earnings call. said 5:41:46 PM ET · drafted 5:42:28 PM ET eBay said global consumer-to-consumer gross merchandise volume "grew by more than 20% in q three," including healthy double-digit growth in the US, UK and Australia. said 5:42:28 PM ET · drafted 5:43:49 PM ET eBay said eBay Live "delivered another record quarter and is generating GMV at a multibillion dollar annualized run rate," with GMV growth "well into the triple digits year over year." said 5:44:16 PM ET · drafted 5:45:07 PM ET eBay said it launched eBay International Shipping in the U.K. and Germany in the third quarter. Sellers ship domestically to an eBay hub and can reach buyers in "more than 190 markets." said 5:46:22 PM ET · drafted 5:46:54 PM ET "47% of consumers surveyed now buy secondhand at least monthly," an eBay executive said on the earnings call, up from 35% last year, citing eBay's 2026 ecommerce report. said 5:48:46 PM ET · drafted 5:49:19 PM ET eBay said collectibles "remained our largest growth contributor" in the third quarter, adding that eBay Motors and fashion also contributed materially and eBay Live posted a record quarter. said 5:49:46 PM ET · drafted 5:50:18 PM ET eBay CFO Peggy said third-quarter GMV grew "nearly 16% year over year to $23.2 billion" on an FX-neutral basis, or 13% organically. Non-GAAP EPS was $1.51. said 5:51:04 PM ET · drafted 5:53:10 PM ET eBay CFO Peggy Hu said U.S. gross merchandise volume grew 22% organically in Q3. Collectibles growth "decelerated moderately as we lapped last year's robust growth," she said. said 5:53:04 PM ET · drafted 5:54:10 PM ET "Our overall take rate declined by 20 basis points year over year," eBay's CFO said on the third-quarter earnings call, citing faster growth in eBay Live and C2C, category mix shifts and the inclusion of Depop. said 5:56:40 PM ET · drafted 5:57:29 PM ET eBay's CFO said the company repurchased "approximately $96 million of ebay shares in q3" at an average price of roughly $106. Free cash flow was $749 million, and the dividend payment totaled $138 million. said 6:01:10 PM ET · drafted 6:01:44 PM ET eBay forecast fourth-quarter consolidated GMV of $23.7 billion to $24.1 billion, including Depop. The company said organic growth would be "between approximately 8% and 10%." said 6:01:40 PM ET · drafted 6:02:36 PM ET eBay forecast fourth-quarter revenue of $3.19 billion to $3.24 billion. The company said GMV growth would outpace revenue growth because of factors "some of which are temporary." said 6:02:52 PM ET · drafted 6:04:51 PM ET eBay forecast fourth-quarter non-GAAP earnings per share of "between $1.48 and $1.53." It also expects non-GAAP operating income growth of 6% to 10% year over year. said 6:05:40 PM ET · drafted 6:05:51 PM ET eBay's CFO said the company's planning assumes growth in trading cards "will naturally moderate" in 2027 as it laps 2026 levels. She said eBay is planning for "healthy" 2027 growth in GMV, revenue and EPS. said 6:06:40 PM ET · drafted 6:06:53 PM ET eBay said its "long term capital return framework remains unchanged," targeting repurchases and dividends of 90% to 100% of normalized free cash flow in a normal year, and still aims for roughly $2 billion in 2026 buybacks. said 6:07:34 PM ET · drafted 6:07:59 PM ET eBay executive: "Opportunities overall that can add gmv and operating income dollars even if they carry a lower percentage take rate." The comment came in response to a question on reinvesting in vehicles, Depop and eBay Live. said 6:10:16 PM ET · drafted 6:10:42 PM ET eBay executive Jamie Iannone said eBay Live is strong in collectibles, but "we see a lot of strength from a lot of other areas fashion handbag watches home and garden." said 6:11:46 PM ET · drafted 6:12:02 PM ET eBay CEO Jamie Iannone said live sellers "generate roughly twice as much gmv on the core marketplace as they sold in live events" over the trailing 12 months, citing the link between eBay Live and the core marketplace. said 6:12:22 PM ET · drafted 6:13:05 PM ET eBay Live had another record quarter and is at a multibillion-dollar annualized GMV run rate, with growth "well into the triple digits," an eBay executive said Wednesday on the company's earnings call. said 6:13:40 PM ET · drafted 6:14:11 PM ET eBay said buyers who join eBay Live events are "spending 70% more when they get involved," citing what it said it saw last quarter among live buyers. said 6:15:04 PM ET · drafted 6:15:11 PM ET eBay is "uniquely positioned to be one of the biggest beneficiaries of AI" because it reduces "transactional friction," an executive said. eBay is "open to approaches that improve discovery of our unmatched inventory." said 6:18:46 PM ET · drafted 6:19:26 PM ET eBay said multi-streaming of its live shows was "a highly requested feature from our sellers," and an executive said it "brings new buyers to ebay from all of those areas." said 6:20:58 PM ET · drafted 6:21:57 PM ET An eBay executive said eBay and Depop "generated approximately $9 billion of fashion gmv in the us alone over the trailing 12 months," growing in the mid-20% range year over year on a pro forma basis. said 6:22:10 PM ET · drafted 6:23:11 PM ET eBay's advertising revenue increased 16% year over year in the third quarter, or 15% on a pro forma basis, an eBay executive said, "despite tougher year over year comps." said 6:23:28 PM ET · drafted 6:24:19 PM ET "Germany continues to face a more challenging spending environment." eBay executive, on international macro; said UK consumer sentiment has improved but customers "remain selective." said 6:24:28 PM ET · drafted 6:25:19 PM ET eBay said it launched its coin authenticity guarantee in August with PCGS and rolled it out to all sellers in September. An executive called coins "the next" of many collectibles areas where eBay can "drive the playbook." said 6:26:46 PM ET · drafted 6:27:26 PM ET An eBay executive said the average household has "$4000 of stuff that could be online and less than 20% of it is online," citing Depop's Magic Listings as a way to unlock secondhand items. said 6:27:46 PM ET · drafted 6:29:31 PM ET eBay said active buyers grew by over 1% excluding Depop and Tise, "led by 6% organic growth in the us," partially offset by softer trends in international markets. said 6:29:58 PM ET · drafted 6:30:38 PM ET Access to eBay's carrier rates "has already lowered depop's shipping and parcel rates," an eBay executive said. The company is also testing a module of Depop listings in eBay search for select fashion queries. said 6:31:16 PM ET · drafted 6:31:39 PM ET An eBay executive said agentic AI shopping traffic is "very very small today" but that it brings new and reactivated buyers "at a higher rate than other similar channels on the platform." said 6:32:58 PM ET · drafted 6:33:48 PM ET An eBay executive said roughly half of new buyers from agentic AI shopping referrals "come directly to ebay for their subsequent purchases," adding the traffic is small today and AI will be a "big structural tailwind." said 6:33:46 PM ET · drafted 6:35:50 PM ET TRANSCRIPT (copy-edited; times Eastern) [5:30:40 PM ET] good day everyone my name is [5:30:40 PM ET] and i will be your conference operator today [5:30:46 PM ET] at this time i would like to welcome you to the ebay third quarter twenty twenty [5:30:46 PM ET] six earnings call [5:30:46 PM ET] all lines have been placed on mute to prevent any background noise [5:30:52 PM ET] after the speakers' remarks there will be a question and answer session [5:30:58 PM ET] if you would like to ask a question during this time and if you have joined via the webinar [5:30:58 PM ET] please use the raise hand icon which can be found at the bottom of your webinar application [5:31:04 PM ET] at this time i would like to turn the call over to john egbert [5:31:04 PM ET] vice president of investor relations [5:31:04 PM ET] good afternoon [5:31:10 PM ET] thank you all for joining us for ebay's third quarter twenty twenty six earnings conference call [5:31:16 PM ET] joining me today on the call are jamie iannoni our chief executive officer [5:31:22 PM ET] and peggy alford our chief financial officer [5:31:22 PM ET] we're providing a slide presentation to accompany our commentary during the call [5:31:28 PM ET] which is available through the investor relations section of the ebay website [5:31:28 PM ET] at investors dot ebayinc dot com [5:31:34 PM ET] before we begin i'll remind you that during this conference [5:31:40 PM ET] call we will discuss certain non gaap measures related to our performance [5:31:40 PM ET] you can find the reconciliation of these measures to the nearest comparable gaap measures [5:31:46 PM ET] in our accompanying slide presentation [5:31:52 PM ET] all growth rates noted in our prepared remarks will reflect organic [5:31:52 PM ET] fx neutral year over year comparisons [5:31:52 PM ET] all earnings per share amounts reflect earnings per diluted share [5:31:58 PM ET] unless indicated otherwise [5:31:58 PM ET] additionally all year over year growth rates versus twenty twenty five [5:32:04 PM ET] are also based on recast financials reflecting our adoption [5:32:10 PM ET] of the new internally developed software accounting guidance in twenty twenty six [5:32:10 PM ET] and all depop comparisons will be pro form a fx neutral [5:32:16 PM ET] year over year comparisons unless noted [5:32:16 PM ET] otherwise [5:32:22 PM ET] during this conference call management will make forward looking statements including [5:32:22 PM ET] without limitation statements regarding our future performance and expected financial results [5:32:28 PM ET] these forward looking statements involve known and unknown risks and [5:32:28 PM ET] uncertainties [5:32:34 PM ET] our actual results may differ materially from our forecast for a variety of reasons [5:32:40 PM ET] you can find more information about risks uncertainties and other factors that [5:32:46 PM ET] could affect our operating results in our most recent periodic reports on form ten ks [5:32:46 PM ET] form ten q and our earnings release from earlier today [5:32:52 PM ET] you should not rely on any forward looking statements [5:32:52 PM ET] all information in this presentation is as of october twenty eight twenty twenty six [5:32:58 PM ET] we do not intend and undertake no duty to update this information [5:33:04 PM ET] with that i'll turn the call over to jamie [5:33:04 PM ET] thanks john good afternoon and thank you all for joining us today [5:33:10 PM ET] we delivered strong results in q3 [5:33:16 PM ET] as our key financial measures exceeded consensus expectations and the high end of our [5:33:16 PM ET] respective guidance ranges [5:33:22 PM ET] gross merchandise volume grew by thirteen percent to more than twenty three billion dollars [5:33:28 PM ET] revenue grew eleven percent to three point two billion dollars [5:33:28 PM ET] we also delivered eleven percent year over year growth [5:33:34 PM ET] in non gaap operating income and nearly [5:33:34 PM ET] twelve percent growth in non gaap earnings per share even as we continue to invest [5:33:40 PM ET] behind our highest priority growth opportunities [5:33:46 PM ET] our outperformance was once again broad based across categories [5:33:46 PM ET] geographies and customer segments our key strategic priorities [5:33:52 PM ET] including focus categories consumer to consumer or c to c [5:33:58 PM ET] and recommerce grew gmv by approximately twenty percent in aggregate [5:34:04 PM ET] and now represents seventy two percent of our total gmv excluding depop [5:34:10 PM ET] ebay's results also benefited from the continued scaling of emerging growth vectors [5:34:10 PM ET] like ebay live and vehicles which are contributing more meaningfully each quarter [5:34:16 PM ET] as well as depop which accelerated materially [5:34:22 PM ET] and contributed to total fx neutral gmv growth [5:34:22 PM ET] of nearly sixteen percent year over year in q three [5:34:28 PM ET] focus category gmv grew twenty [5:34:28 PM ET] four percent in q three led by collectibles ebay motors [5:34:34 PM ET] fashion and refurbished goods our continued momentum [5:34:40 PM ET] reflects years of strategic investment in category specific innovation [5:34:46 PM ET] trust selection community and tailored [5:34:46 PM ET] selling and buying experiences for our customers [5:34:52 PM ET] starting with collectibles trading cards maintain [5:34:52 PM ET] strong gmv growth even as we lapped increasingly difficult year over year comparisons [5:34:58 PM ET] pokemon's thirtieth anniversary releases [5:34:58 PM ET] support continued growth in collectible card games while major summer events [5:35:04 PM ET] and the fall sports calendar drove healthy demand for sports trading cards [5:35:10 PM ET] excitement for ebay collectibles was on full display [5:35:16 PM ET] at the national sports collectors convention in chicago [5:35:16 PM ET] which drove record usage of our ai powered card scanning tool [5:35:22 PM ET] the tool has now surpassed one hundred and thirty million scans [5:35:22 PM ET] and in q3 we expanded card scanning to the uk [5:35:28 PM ET] and began adding proprietary transaction data from tcgplayer and goldin [5:35:34 PM ET] to the tool's price guide giving collectors a broader view of market pricing [5:35:34 PM ET] in q3 we expanded authenticity guaranteed to lower price trading [5:35:40 PM ET] cards in the u s and uk [5:35:46 PM ET] the u s the change increased the number of sold items [5:35:46 PM ET] eligible for authenticity guaranteed by more than twenty percent [5:35:52 PM ET] and also made those items eligible for grading add on and vault storage services [5:35:52 PM ET] offered through our partnership with psa [5:35:58 PM ET] in august we launched authenticity [5:36:04 PM ET] for collectible coins in the us in partnership with professional coin grading service [5:36:04 PM ET] this program covers eligible graded coins from around the world [5:36:10 PM ET] and raw us coins priced at five hundred dollars or more [5:36:10 PM ET] at no additional cost to buyers or sellers [5:36:16 PM ET] authenticity guaranteed surpassed twenty million cumulative [5:36:22 PM ET] items inspected across categories in july [5:36:22 PM ET] reinforcing our commitment to building trust and confidence across our marketplace [5:36:28 PM ET] our off platform collectibles marketplaces also continued to thrive [5:36:34 PM ET] tcg players surpassed one billion dollars [5:36:40 PM ET] in trailing twelve month gmv for the first time [5:36:40 PM ET] and open seller registration in the uk and canada [5:36:46 PM ET] extending the reach of its specialized collectible card game marketplace [5:36:46 PM ET] our goldin subsidiary had another record gmv quarter [5:36:52 PM ET] and continues to track some of the world's rarest and most valuable collectibles [5:36:58 PM ET] in q three goldin hosted an auction commemorating the united states [5:37:04 PM ET] two hundred and fiftieth anniversary highlighted by a rare copy of the declaration [5:37:04 PM ET] of independence that sold for over three point six million dollars [5:37:10 PM ET] bringing together the core ebay marketplace [5:37:16 PM ET] ebay live tcg player and goldin we're serving enthusiasts [5:37:16 PM ET] across all major categories [5:37:16 PM ET] price points and transaction formats [5:37:22 PM ET] turning to ebay motors [5:37:28 PM ET] which remained a material contributor to gmv growth across [5:37:28 PM ET] parts and accessories and vehicles in p and a [5:37:34 PM ET] we launched easy and free returns in germany in q3 [5:37:34 PM ET] following successful rollouts in the u s and uk [5:37:40 PM ET] that drove increased conversion and incremental gmv with stable return rates [5:37:46 PM ET] we also introduced certified recycled badging in the u s [5:37:46 PM ET] helping buyers identify high quality recycled oem parts [5:37:46 PM ET] from qualified sellers [5:37:52 PM ET] in vehicles we continue to simplify the end to end transaction [5:37:58 PM ET] experience and expand the range of customers and vehicles we can serve [5:37:58 PM ET] in q3 [5:38:04 PM ET] we launched secure purchase express to provide a streamlined path [5:38:10 PM ET] to check out for c to c sellers who do not require our full suite of services [5:38:10 PM ET] we onboarded hundreds of independent dealers [5:38:16 PM ET] to our new trusted dealer program allowing them [5:38:16 PM ET] to use secure purchase within their existing workflows [5:38:22 PM ET] and we increased vehicle purchase protection coverage [5:38:22 PM ET] to five hundred thousand dollars [5:38:22 PM ET] to support more high value transactions [5:38:28 PM ET] these protections and our differentiated buyer reach supported [5:38:34 PM ET] several vehicle sales above one million dollars in q three [5:38:34 PM ET] including a two thousand and five porsche carrera gt [5:38:40 PM ET] that sold for five million dollars from a trusted dealer in arkansas [5:38:40 PM ET] to a buyer located in texas [5:38:46 PM ET] ebay's fashion business continues to be a source of growth [5:38:52 PM ET] led by luxury which delivered another quarter of healthy double digit gmv growth [5:38:58 PM ET] in q3 we significantly [5:38:58 PM ET] expanded authenticity guaranteed across europe [5:39:04 PM ET] enabling buyers in twenty three european union countries [5:39:04 PM ET] to shop for authenticated luxury fashion inventory [5:39:10 PM ET] from sellers in germany france and italy [5:39:10 PM ET] in australia we launched authenticity guaranteed for watches [5:39:16 PM ET] and continued broadening eligible brands across apparel footwear and accessories [5:39:22 PM ET] this trust infrastructure has helped make ebay the leading online marketplace [5:39:22 PM ET] for secondhand luxury fashion sales in the us and uk [5:39:28 PM ET] depop complements ebay's broader fashion business [5:39:34 PM ET] and expands our reach with younger consumers through its discovery led experience [5:39:34 PM ET] optimized for desirable affordable secondhand fashion [5:39:40 PM ET] q3 was depop's first quarter as part of ebay [5:39:46 PM ET] and its results reinforce the strength of the business [5:39:46 PM ET] and gave us even more conviction in the opportunity ahead [5:39:52 PM ET] depop's gmv growth outperformed our expectations in q3 [5:39:58 PM ET] including us gmv monthly active users and sold items [5:39:58 PM ET] more than doubling year over year on a pro form a basis [5:40:04 PM ET] and the quality of that growth is encouraging [5:40:10 PM ET] new cohorts are buying and selling more than prior cohorts [5:40:10 PM ET] while repurchase relist and resell rates all improved year over year [5:40:16 PM ET] customers who both buy and sell remain [5:40:22 PM ET] several times more valuable than one-sided users [5:40:22 PM ET] demonstrating the strength of depop c2c flywheel [5:40:28 PM ET] depop continued to improve its product experience in q three [5:40:28 PM ET] as it enabled faster personalized discovery on the home page [5:40:34 PM ET] simplified its ai assisted listing flow [5:40:34 PM ET] and deployed new ai models to prioritize the visibility [5:40:40 PM ET] of higher quality listings [5:40:40 PM ET] we also introduced new depop balance features in q3 [5:40:46 PM ET] allowing customers to keep their sales proceeds in the app [5:40:46 PM ET] and use them for future purchases [5:40:52 PM ET] this makes it easier for sellers to become buyers as well [5:40:58 PM ET] encouraging the two sided engagement we see among depop's most valuable customers [5:41:04 PM ET] marketing and shipping play complementary roles in depop's growth model [5:41:04 PM ET] full funnel marketing has proven effective at raising awareness [5:41:04 PM ET] and bringing more customers into the marketplace [5:41:10 PM ET] our investments to lower shipping costs have made lower priced items economical [5:41:16 PM ET] increased purchase frequency and improved seller velocity [5:41:22 PM ET] access to ebay's preferred carrier rates [5:41:22 PM ET] has lowered average parcel cost making shipping investments more efficient [5:41:28 PM ET] we are also increasingly targeting those investments toward customer moments we believe are most [5:41:28 PM ET] predictive of long term value [5:41:34 PM ET] beyond shipping we continue to explore [5:41:40 PM ET] and demand synergies between ebay and depop [5:41:40 PM ET] in q three we tested a dedicated module of relevant depop listings [5:41:46 PM ET] adjacent to ebay search results for select fashion queries [5:41:46 PM ET] we are currently testing the next phase of our inventory integration [5:41:52 PM ET] by exploring how users respond to individual depop listings directly in ebay [5:41:58 PM ET] search results for relevant queries over time we believe ebay's [5:41:58 PM ET] scaled demand and shopping intent signals can connect more fashion consumers [5:42:04 PM ET] with relevant depop listings and drive incremental gmv and velocity [5:42:04 PM ET] for depop sellers [5:42:10 PM ET] overall we are managing ebay and depop as a portfolio [5:42:16 PM ET] preserving each brand's distinct experience and allocating investment [5:42:22 PM ET] toward opportunities that generate the strongest long term returns for the combined company [5:42:22 PM ET] depop's growth builds upon the strong consumer selling momentum on ebay [5:42:28 PM ET] where global c two c gmv grew by more than twenty percent in q three [5:42:34 PM ET] including healthy double digit growth across the us uk and australia [5:42:40 PM ET] artificial intelligence has an outsized impact [5:42:40 PM ET] on our c to c business as it reduces friction that prevents consumers from [5:42:46 PM ET] listing and selling successfully [5:42:52 PM ET] we continue to see strong results from the latest [5:42:52 PM ET] generation of our ai powered magical listing experience [5:42:58 PM ET] which is now available to all new and reactivated listers [5:42:58 PM ET] across six major markets we've also rolled out magical listing to all [5:43:04 PM ET] nonprofessional sellers in australia france and italy [5:43:10 PM ET] and we are in the midst of ramping to active seller groups in the us uk and germany [5:43:10 PM ET] in australia active sellers are creating more than one third more listing [5:43:16 PM ET] per attemper with magical listing while their average listing time has been reduced by [5:43:22 PM ET] one third which is similar to the benefits we've observed with new sellers [5:43:28 PM ET] as we began ramping active seller groups [5:43:28 PM ET] we upgraded magical listings pricing guidance including an [5:43:34 PM ET] improved user experience and new ai models with smarter price recommendations [5:43:34 PM ET] driving measurable improvements in conversion and sell through [5:43:40 PM ET] in september we launched comprehensive improvements to the [5:43:46 PM ET] c2c value proposition in france and italy [5:43:46 PM ET] bringing together free selling buyer protection mass [5:43:52 PM ET] listing enhanced local discovery ebay balanced and simplified shipping [5:43:58 PM ET] these launches have driven meaningful uplift in leading indicators such as new [5:44:04 PM ET] reactivated listers and lay the foundation for a more connected european [5:44:04 PM ET] overall [5:44:10 PM ET] we are also giving sellers new ways to connect directly with buyers [5:44:10 PM ET] grow their businesses which brings me to ebay live [5:44:16 PM ET] ebay live delivered another record quarter [5:44:16 PM ET] and is generating gmv at a multibillion dollar annualized run rate [5:44:22 PM ET] gmv growth remained well into the triple digits year over year [5:44:28 PM ET] similar to recent quarters as sellers [5:44:34 PM ET] buyers content hours and viewership continue to expand across [5:44:34 PM ET] all seven markets [5:44:40 PM ET] in q3 we expanded self-service onboarding to more markets [5:44:40 PM ET] and broaden eligibility beyond established ebay sellers [5:44:46 PM ET] creating a more scalable path for sellers to join live [5:44:52 PM ET] we also launched multi streaming through live studio [5:44:52 PM ET] which allows sellers to broadcast simultaneously to youtube facebook [5:44:58 PM ET] instagram and twitch drawing buyers to ebay from their existing social audience [5:45:04 PM ET] for buyers we redesigned the live hub with updated search [5:45:04 PM ET] filters personalized recommendations and a feed based experience [5:45:10 PM ET] while integrating live more prominently into services across ebay [5:45:16 PM ET] this should make relevant events inventory and communities easier to [5:45:16 PM ET] discover as live scales [5:45:22 PM ET] trust remains foundational to ebay live [5:45:22 PM ET] during q three we launched ai powered moderation across chat [5:45:28 PM ET] audio and video added pre event screening [5:45:28 PM ET] and strengthened host controls for moderation [5:45:34 PM ET] we also deployed real time multimodal ai agents [5:45:40 PM ET] to extract structured item details directly from video streams [5:45:46 PM ET] these agents will initially focus on trust and over time [5:45:46 PM ET] support automated listing creation tools and more intelligent item discovery [5:45:52 PM ET] taken as a whole these advances are expanding seller access and reach [5:45:58 PM ET] strengthening buyer discovery and embedding ai and trust [5:46:04 PM ET] throughout the experience helping us scale ebay live as a differentiated commerce [5:46:04 PM ET] platform [5:46:10 PM ET] in shipping [5:46:10 PM ET] we are using ebay's scale and carrier relationships to lower cost and simplify [5:46:16 PM ET] fulfillment helping sellers reach more buyers [5:46:16 PM ET] and making more inventory economical to transact [5:46:22 PM ET] in q3 we launched ebay international shipping in both the uk and germany [5:46:28 PM ET] sellers will now be able to ship domestically to an ebay hub [5:46:34 PM ET] and seamlessly tap into buyer demand in more than one hundred and ninety markets [5:46:34 PM ET] while ebay handles transportation customs returns [5:46:40 PM ET] and post purchase support customer feedback has been extremely positive [5:46:46 PM ET] and the cost savings from these programs are significant [5:46:46 PM ET] for instance in the uk we estimate eis [5:46:52 PM ET] can be up to thirty percent cheaper for customers [5:46:52 PM ET] than our previous global shipping program [5:46:58 PM ET] in q3 we also deployed an improved [5:46:58 PM ET] ai delivery date model across six major export markets [5:47:04 PM ET] expanding the inventory we can show with a fast delivery promise [5:47:04 PM ET] while maintaining reliability [5:47:10 PM ET] during the quarter we completed the nationwide rollout of u s [5:47:16 PM ET] managed shipping to all new and reactivated listers [5:47:16 PM ET] within the magical listing flow ebay now estimates the package [5:47:22 PM ET] size and weight with ai generates a prepaid label [5:47:22 PM ET] and provides tracking [5:47:28 PM ET] sellers are automatically protected against loss or damage [5:47:28 PM ET] and early results show a double digit percentage reduction [5:47:34 PM ET] in listing time and strong customer satisfaction [5:47:40 PM ET] in the uk we are making pickup and drop off [5:47:40 PM ET] or pudo services more visible [5:47:46 PM ET] and economical across more than fifty thousand carrier options [5:47:52 PM ET] at lockers and parcel shops with approximately ninety [5:47:52 PM ET] percent of u k buyers living within one mile of a pouda location [5:47:58 PM ET] we are simplifying the experience and using targeted promotions to build adoption [5:48:04 PM ET] giving sellers convenient drop off options [5:48:04 PM ET] and buyers a lower cost alternative to home delivery [5:48:10 PM ET] which can increase velocity for lower priced inventory [5:48:10 PM ET] in q4 we are beginning a limited seller drop off [5:48:16 PM ET] test in several large u metropolitan areas [5:48:22 PM ET] our objective is to learn whether greater shipping choice and structurally lower cost delivery options [5:48:22 PM ET] can improve listing activity conversion and transaction velocity [5:48:28 PM ET] we are assessing customer adoption service quality and unit economics [5:48:28 PM ET] throughout the test [5:48:34 PM ET] before closing [5:48:40 PM ET] like to share a few highlights from ebay's two thousand and twenty six ecommerce report [5:48:40 PM ET] which we published earlier this month [5:48:46 PM ET] report points to a secular shift in ecommerce as forty seven percent of consumers [5:48:52 PM ET] surveyed now buy secondhand at least monthly [5:48:52 PM ET] up from thirty five percent last year [5:48:58 PM ET] and eighty nine percent expect to spend the same or more [5:48:58 PM ET] on secondhand goods in two thousand and twenty seven [5:49:04 PM ET] it also highlights seller economics roughly eighty five percent of sellers [5:49:10 PM ET] source secondhand inventory from their own belongings [5:49:10 PM ET] and nearly thirty percent say selling secondhand [5:49:10 PM ET] helps them earn extra income [5:49:16 PM ET] younger consumers are accelerating this shift [5:49:22 PM ET] fifty three percent of eighteen to twenty nine year olds [5:49:22 PM ET] expect to buy more secondhand in two thousand twenty seven [5:49:28 PM ET] that reinforces the long term opportunity for ebay [5:49:28 PM ET] as secondhand becomes a larger part of how people shop [5:49:34 PM ET] in closing we are building on strong marketplace momentum [5:49:40 PM ET] with strategic investments that improve the customer experience [5:49:40 PM ET] and strengthen ebay for the long term [5:49:46 PM ET] collectibles remained our largest growth contributor [5:49:46 PM ET] ebay motors and fashion also contributed materially [5:49:46 PM ET] and ebay live delivered another record quarter [5:49:52 PM ET] depop's first quarter with ebay reinforced its strategic fit [5:49:58 PM ET] as us gmv more than doubled year over year on a pro form a basis [5:50:04 PM ET] with healthy new cohorts and growing engagement from customers who both buy and sell [5:50:04 PM ET] shipping is becoming a more strategic portfolio capability [5:50:10 PM ET] as we expand our domestic and cross border services [5:50:16 PM ET] and extend ebay's carrier scale and infrastructure to depop [5:50:16 PM ET] lowering costs reducing friction and increasing velocity [5:50:22 PM ET] ai is delivering measurable gains in listing productivity and conversion [5:50:28 PM ET] while improving discovery trust and reliability across the marketplace [5:50:34 PM ET] and we delivered all of this progress while growing non gaap operating income [5:50:40 PM ET] and earnings per share at double digits year over year [5:50:40 PM ET] demonstrating our ability to invest behind long term growth [5:50:40 PM ET] and still deliver significant value for shareholders [5:50:46 PM ET] with that i'll turn the call over to peggy to provide more details [5:50:52 PM ET] on our financial performance and outlook peggy over to you [5:50:52 PM ET] thank you jamie [5:50:52 PM ET] hello everyone [5:50:58 PM ET] in the third quarter we once again exceeded expectation across [5:50:58 PM ET] all of our key financial metrics [5:51:04 PM ET] gmv grew by nearly sixteen percent year over year [5:51:10 PM ET] to twenty three point two billion dollars on an fx neutral basis [5:51:10 PM ET] or thirteen percent organically [5:51:16 PM ET] revenue grew thirteen percent year over year [5:51:16 PM ET] to three point two one billion dollars on an fx neutral basis [5:51:16 PM ET] or eleven percent organically [5:51:22 PM ET] non gaap operating income grew eleven percent year over year [5:51:28 PM ET] to eight forty three million dollars [5:51:28 PM ET] non gaap earnings per share grew nearly twelve percent year over year [5:51:34 PM ET] to one point five one dollars [5:51:40 PM ET] and we returned nearly eight thirty million dollars of capital [5:51:40 PM ET] to shareholders through repurchases and cash dividends in q three [5:51:46 PM ET] now let's take a closer look at the drivers of our [5:51:46 PM ET] strong performance [5:51:52 PM ET] gmv grew nearly sixteen percent to twenty three point two billion dollars [5:51:52 PM ET] on a total fxn basis [5:51:58 PM ET] and increased thirteen percent on an organic fxn basis [5:52:04 PM ET] as depop added nearly three points of growth [5:52:04 PM ET] foreign exchange was a headwind of thirty basis points [5:52:10 PM ET] to spot gmv growth [5:52:10 PM ET] we saw broad based momentum across our established strategic priorities [5:52:16 PM ET] as focus categories c2c and e commerce [5:52:22 PM ET] each grew gmv by more than twenty percent [5:52:22 PM ET] while ebay live and vehicles each grew well into the triple digits in the quarter [5:52:28 PM ET] focus category gmv grew twenty four percent [5:52:34 PM ET] outpacing the remainder of our marketplace by nineteen percentage points [5:52:40 PM ET] with collectibles motors fashion and refurbished [5:52:40 PM ET] all contributing materially to growth [5:52:46 PM ET] moving on to our major geographies [5:52:46 PM ET] our u s gmv grew twenty two percent on an organic basis [5:52:52 PM ET] with positive growth contributions from all of our major categories [5:52:58 PM ET] collectibles gmv growth remains strong in the u s [5:53:04 PM ET] but decelerated moderately as we lapped last year's robust growth [5:53:04 PM ET] growth in our trading cards business remained broad based [5:53:10 PM ET] across multiple sports and collectible card game genres [5:53:16 PM ET] beyond trading cards we also saw healthy growth [5:53:16 PM ET] across collectible coins comics and sports memorabilia [5:53:22 PM ET] electronics became a larger contributor to u s growth in q3 [5:53:28 PM ET] driven by strong demand for computer hardware [5:53:28 PM ET] consoles and video games [5:53:34 PM ET] the growth in these subcategories was also fueled by a combination of [5:53:34 PM ET] transactions and asp increases which reinforce [5:53:40 PM ET] reinforces ebay's strength as a leading destination for pre owned and refurbished products [5:53:40 PM ET] at more assessable price points [5:53:46 PM ET] ebay's fashion gmv in the u s was healthy with continued [5:53:46 PM ET] strength in luxury [5:53:52 PM ET] depop added to our momentum in fashion [5:53:58 PM ET] as its us gmv more than doubled year over year on a pro form a basis [5:54:04 PM ET] combined ebay and depop generated [5:54:04 PM ET] approximately nine billion dollars in fashion gmv [5:54:10 PM ET] over the trailing twelve months in the us alone [5:54:10 PM ET] growing in the mid-twenty percent range year over year on a pro form a basis [5:54:16 PM ET] international gmv grew nearly four percent year over year in [5:54:22 PM ET] on an organic fxn basis [5:54:28 PM ET] with foreign exchange representing a sixty basis point headwind to spot growth [5:54:28 PM ET] our investments and strategic priorities continue to yield a track [5:54:34 PM ET] attractive returns in these markets despite a challenging macro backdrop [5:54:40 PM ET] specifically focus category and c2c gmv [5:54:46 PM ET] each grew double digits in the uk and each [5:54:46 PM ET] drove high single digit growth in germany [5:54:52 PM ET] furthermore our organic year over year growth [5:54:52 PM ET] also improved sequentially in canada australia [5:54:52 PM ET] france and italy [5:54:58 PM ET] shifting to our biometrics [5:55:04 PM ET] trailing twelve month active buyers grew four percent [5:55:04 PM ET] to one hundred and forty seven million on a pro form a basis [5:55:10 PM ET] which includes buyers from recently acquired depop and ties [5:55:10 PM ET] excluding depop and ties global [5:55:16 PM ET] active buyers grew by over one percent [5:55:16 PM ET] u s active buyer growth remained strong at [5:55:22 PM ET] six percent year over year organically [5:55:22 PM ET] or thirteen percent on a pro form a basis including depop [5:55:28 PM ET] our sixteen million enthusiast buyers [5:55:34 PM ET] who are our most loyal customers visit the core ebay marketplace [5:55:34 PM ET] more than once a day on average [5:55:40 PM ET] and contribute over seventy percent of the gmv on our marketplace [5:55:40 PM ET] our investments in key strategic priorities [5:55:46 PM ET] continue to drive higher engagement and spending [5:55:52 PM ET] helping grow trailing twelve month enthusiast buyers [5:55:52 PM ET] by over two percent year over year [5:55:52 PM ET] in q three [5:55:58 PM ET] in the u s enthusiast buyer growth was especially strong [5:55:58 PM ET] up nine percent year over year [5:56:04 PM ET] global spend per enthusiast buyer continues to show strong growth [5:56:10 PM ET] increasing to approximately three thousand seven hundred dollars [5:56:10 PM ET] on a trailing twelve month basis [5:56:16 PM ET] next let's take a look at our income statement [5:56:16 PM ET] revenue grew thirteen percent to three point two one billion dollars [5:56:22 PM ET] on a total fxn basis [5:56:22 PM ET] and increased eleven percent on an organic fxn basis [5:56:28 PM ET] as depop contributed nearly two points of growth in the quarter [5:56:34 PM ET] foreign exchange was a seventy basis point tailwind [5:56:34 PM ET] to spot revenue growth [5:56:40 PM ET] our overall take rate declined by [5:56:40 PM ET] twenty basis points year over year reflecting faster growth [5:56:40 PM ET] in ebay live and c2c [5:56:46 PM ET] ongoing category and asp mix shifts [5:56:46 PM ET] and the inclusion of depop [5:56:52 PM ET] as a reminder depop's revenue contribution is lower than gmv [5:56:58 PM ET] primarily because a significant portion of our [5:56:58 PM ET] velocity driving shipping investments are recognized as contra revenue [5:57:04 PM ET] these pressures were partially offset [5:57:10 PM ET] by tailwinds from shipping advertising and financial services [5:57:10 PM ET] next i'll discuss highlights within our value added services [5:57:16 PM ET] portfolio which continues to benefit our marketplace by strengthening trust [5:57:22 PM ET] reducing transactional friction [5:57:22 PM ET] and driving sales velocity [5:57:28 PM ET] total advertising revenue was six zero seven million [5:57:28 PM ET] in the third quarter [5:57:28 PM ET] growing sixteen percent year over year [5:57:34 PM ET] excluding depop ads revenue was nearly [5:57:34 PM ET] two point seven percent of gmv [5:57:40 PM ET] first party ads grew sixteen percent [5:57:40 PM ET] to five seventy five million dollars [5:57:46 PM ET] promoted listings comprised nearly one point three billion [5:57:52 PM ET] of the nearly two point seven billion total listings on ebay [5:57:58 PM ET] excluding depop and six million sellers adopted [5:57:58 PM ET] at least one promoted listing product during the quarter [5:58:04 PM ET] we delivered several key [5:58:04 PM ET] product innovations during the quarter [5:58:04 PM ET] to strengthen our performance ads engine [5:58:10 PM ET] we introduced an ai powered placement engine [5:58:16 PM ET] that uses machine learning to dynamically optimize ad density and search [5:58:16 PM ET] based on shopper context and expected value [5:58:22 PM ET] we also expanded our video ad formats across [5:58:22 PM ET] promoted listings and promoted stores [5:58:28 PM ET] video ads create a much more dynamic engaging [5:58:34 PM ET] discovery experience for buyers while giving sellers a powerful new tool [5:58:34 PM ET] to showcase their items [5:58:40 PM ET] additionally we rolled out new personalized ad prompts [5:58:40 PM ET] for c to c sellers that are more relevant and efficient [5:58:46 PM ET] financial services was a modest [5:58:52 PM ET] contributor to our take rate as we continue to [5:58:52 PM ET] expand our buyer and seller products to reduce friction on our marketplace [5:58:58 PM ET] following a successful uk launch [5:58:58 PM ET] we recently expanded pay by bank to germany and france [5:59:04 PM ET] which offers more choice for customers and attractive economics for ebay [5:59:04 PM ET] similar to the uk [5:59:10 PM ET] pay by bank transactions in germany generate high average order values [5:59:16 PM ET] and carry lower processing costs than other forms of payment [5:59:22 PM ET] moving on to our profitability and earnings [5:59:22 PM ET] non gaap gross margin was seventy three point one percent in the third quarter [5:59:28 PM ET] up sixty basis points year over year [5:59:34 PM ET] our non gaap operating income grew eleven percent year over year [5:59:34 PM ET] to eight hundred and forty three million dollars [5:59:40 PM ET] sales and marketing expense increased in the third quarter [5:59:46 PM ET] driven by targeted investments in our strategic priorities including depop [5:59:46 PM ET] based on the strong results we are seeing [5:59:52 PM ET] given the upside in our overall performance this quarter [5:59:52 PM ET] we were able to create more capacity to invest in these areas [5:59:58 PM ET] in addition [5:59:58 PM ET] marketing efficiencies in the core ebay marketplace [6:00:04 PM ET] enabled us to redeploy more resources to capitalize on depop's [6:00:10 PM ET] extraordinary momentum and expand our reach with a younger customer demographic [6:00:16 PM ET] transaction losses as a percentage of revenue decreased [6:00:16 PM ET] for a second straight quarter in q3 as expected [6:00:22 PM ET] and was roughly in line with the year ago period [6:00:28 PM ET] as teams delivered on multiple initiatives to optimize our shipping programs [6:00:28 PM ET] and customer experiences [6:00:34 PM ET] we delivered non gaap earnings per share [6:00:34 PM ET] of one point five one dollars up nearly twelve percent year over year [6:00:40 PM ET] and gaap earnings per share of one point one one dollars [6:00:46 PM ET] turning to our balance sheet and capital allocation [6:00:52 PM ET] in the third quarter we generated free cash flow [6:00:52 PM ET] of seven forty nine million dollars and ended the period with cash and [6:00:58 PM ET] fixed income investments of three point three billion dollars [6:00:58 PM ET] and gross debt of six point seven billion dollars on our balance sheet [6:01:04 PM ET] our equity investments were valued at eight hundred million dollars [6:01:10 PM ET] we repurchased approximately six ninety million dollars of ebay [6:01:10 PM ET] shares in q3 [6:01:16 PM ET] at an average price of roughly one hundred and six dollars [6:01:22 PM ET] and we paid a quarterly cash dividend of one hundred and thirty eight million dollars [6:01:22 PM ET] in september or zero three one dollars per share [6:01:28 PM ET] now i will share some thoughts on our outlook starting with the fourth quarter [6:01:34 PM ET] please reference the earnings presentation accompanying our release [6:01:34 PM ET] for our outlook in spot growth terms and foreign exchange implications [6:01:40 PM ET] for q4 we expect consolidated gmv [6:01:46 PM ET] between twenty three point seven [6:01:46 PM ET] and twenty four point one billion dollars [6:01:52 PM ET] including depop which represents total fx and growth [6:01:52 PM ET] between twelve percent and fourteen percent year over year [6:01:58 PM ET] or organic growth between approximately eight percent and ten percent [6:02:04 PM ET] our guidance implies depop would contribute four percentage points [6:02:04 PM ET] to total fx and gmv growth [6:02:10 PM ET] this guidance contemplates strong broad based momentum [6:02:10 PM ET] across the core ebay marketplace [6:02:16 PM ET] driven by our strategic priorities and ebay live [6:02:22 PM ET] partially offset by lapping dynamics from a very robust fourth quarter last [6:02:22 PM ET] year [6:02:28 PM ET] due in part to trading cards and bullion strength [6:02:28 PM ET] furthermore we are forecasting another quarter of [6:02:34 PM ET] extraordinary growth from depop with q4 year over year growth [6:02:40 PM ET] similar to q3 on a pro form a basis [6:02:40 PM ET] driven by effective customer acquisition and engagement [6:02:46 PM ET] we forecast consolidated revenue [6:02:52 PM ET] to be between three point one nine percent and three point two [6:02:52 PM ET] four billion dollars in q4 which represents total fxn growth [6:02:58 PM ET] between seven percent and nine percent year over year [6:02:58 PM ET] or organic growth between five percent and seven percent [6:03:04 PM ET] with depop contributing two percentage points to total fxn revenue growth [6:03:10 PM ET] we expect gmv growth to outpace revenue growth in q4 [6:03:10 PM ET] due to a few factors [6:03:10 PM ET] some of which are temporary [6:03:16 PM ET] first [6:03:16 PM ET] depop is operating at a lower take rate than our core marketplace [6:03:22 PM ET] and its year over year take rate pressure is elevated [6:03:22 PM ET] until we lap the acquisition date [6:03:28 PM ET] second the transition of uk managed shipping from a gross to net [6:03:34 PM ET] revenue model has impacted our take rate in twenty twenty six [6:03:40 PM ET] and is more significant in q4 as we lap [6:03:40 PM ET] the completed rollout in the prior year [6:03:46 PM ET] and third ongoing business as [6:03:46 PM ET] asp and category mix shifts continue to apply pressure to our take rate [6:03:52 PM ET] though we are pleased with the incremental gmv revenue and [6:03:52 PM ET] operating income contributions from these transactions [6:03:58 PM ET] we expect consolidated non gaap operating income growth [6:04:04 PM ET] to be between six percent and ten percent year over year in q4 [6:04:10 PM ET] which implies non gaap operating margin [6:04:10 PM ET] between twenty five point seven percent and twenty six point two percent [6:04:16 PM ET] our better than expected top line growth in the first three [6:04:16 PM ET] quarters of this year has generated the capacity to further invest [6:04:22 PM ET] behind our strategic priorities even as we anticipate [6:04:28 PM ET] strong full year operating income growth well ahead of our initial expectations [6:04:34 PM ET] as we have consistently noted [6:04:34 PM ET] our goal is to strike the optimal balance [6:04:40 PM ET] between funding long term growth and delivering healthy flow through to the bottom line [6:04:40 PM ET] our strategy is clearly working [6:04:46 PM ET] we see tremendous runway ahead across numerous initiatives [6:04:52 PM ET] including ebay live c two c as well as depop [6:04:52 PM ET] which are significantly expanding our addressable market [6:04:58 PM ET] at the same time we remain disciplined on costs [6:05:04 PM ET] and continue to drive operational efficiency across the business [6:05:10 PM ET] with this in mind last week [6:05:10 PM ET] we announced a difficult decision to reduce our workforce by a [6:05:16 PM ET] approximately nine percent to better align our talent and resources [6:05:22 PM ET] streamline our operations and help create the capacity required [6:05:22 PM ET] to invest in our highest growth initiatives [6:05:28 PM ET] we recognize the significant impact this decision [6:05:28 PM ET] has on our colleagues and their families and we are deeply grateful [6:05:34 PM ET] for their contributions to ebay [6:05:34 PM ET] for the fourth quarter we expect consolidated non gaap [6:05:40 PM ET] earnings per share [6:05:40 PM ET] between one point four eight dollars and one point five three dollars [6:05:46 PM ET] which implies year over year growth between approximately five percent and nine percent [6:05:52 PM ET] in addition we continue to target roughly two billion [6:05:58 PM ET] dollars of stock repurchases for the full year and our board declared a [6:05:58 PM ET] quarterly cash dividend of zero point three one dollars per share for the fourth quarter [6:06:04 PM ET] to be paid in december [6:06:04 PM ET] and finally i'd like to share our [6:06:10 PM ET] preliminary views on twenty twenty seven [6:06:10 PM ET] while we are still in the midst of our annual budgeting process [6:06:16 PM ET] we are planning our business around healthy consolidated year over year growth [6:06:16 PM ET] across gmv [6:06:22 PM ET] revenue non gaap operating income and non gaap earnings per share [6:06:28 PM ET] we anticipate continued broad based gmv growth [6:06:34 PM ET] across our strategic initiatives including focus categories ebay live [6:06:34 PM ET] c2c and depop [6:06:40 PM ET] while we expect the performance of our trading cards business to remain strong [6:06:40 PM ET] our planning assumes growth will naturally moderate [6:06:46 PM ET] as we lap the extraordinary levels we experienced in twenty twenty six [6:06:52 PM ET] with regard to profitability we will [6:06:52 PM ET] continue to strike a balance between funding prudent investments in long term growth [6:06:58 PM ET] and ensuring healthy flow through from top line growth to earnings in twenty twenty seven [6:07:04 PM ET] our take rate and margin trends in any given quarter [6:07:10 PM ET] will depend on the mix of our portfolio of businesses [6:07:10 PM ET] lapping considerations as well as the timing of various business initiatives [6:07:16 PM ET] below the operating income line [6:07:22 PM ET] we forecast modest headwinds to net interest [6:07:22 PM ET] interest income on a year over year basis given our lower cash balance [6:07:22 PM ET] and interest rate assumptions [6:07:28 PM ET] and we expect our non gaap tax rate [6:07:28 PM ET] to remain relatively stable [6:07:34 PM ET] our long term capital return framework remains unchanged [6:07:34 PM ET] in a normal year [6:07:40 PM ET] we plan to target repurchases and cash dividends [6:07:46 PM ET] totaling between ninety percent to one hundred percent of normalized free cash flow [6:07:46 PM ET] absent organic or inorganic needs for that capital [6:07:52 PM ET] in closing we delivered another [6:07:58 PM ET] set of strong results in q3 with double digit [6:07:58 PM ET] top and bottom line growth [6:08:04 PM ET] our sustained marketplace momentum and disciplined [6:08:04 PM ET] operating efficiencies enabled us to drive strong earnings [6:08:10 PM ET] all while funding compelling long term opportunities [6:08:10 PM ET] like ebay live and depop [6:08:16 PM ET] looking ahead our conviction in ebay's long term [6:08:16 PM ET] trajectory has never been stronger [6:08:22 PM ET] we see tremendous runway [6:08:22 PM ET] to expand our total addressable market and drive durable growth [6:08:28 PM ET] creating compounding multiyear value for our shareholders [6:08:34 PM ET] with that jamie and i will now take your questions [6:08:40 PM ET] we will now begin q and a for today's session we'll be utilizing the raise hand feature [6:08:46 PM ET] if you'd like to ask a question simply click on the raise hand button at the bottom of your screen [6:08:52 PM ET] once you've been called on please unmute yourself and begin to ask your question [6:08:52 PM ET] thank you [6:09:04 PM ET] your first question comes from the line of michael morton with moffett [6:09:04 PM ET] nathanson [6:09:04 PM ET] please unmute your line and ask your question [6:09:10 PM ET] hi good evening thank you for the question [6:09:16 PM ET] my first one would be following up on what peggy just spoke about [6:09:16 PM ET] sorry to kinda hammer this point home but there's a lot of moving parts in the business right now [6:09:22 PM ET] you have live commerce depop and autos are all growing [6:09:22 PM ET] at significantly faster rates than the core business and [6:09:28 PM ET] as you've mentioned they come in at lower take rates and [6:09:34 PM ET] in theory require higher incremental investments than the core business [6:09:34 PM ET] so i i fully appreciate you're not guiding to twenty twenty seven [6:09:40 PM ET] but how should investors think about [6:09:40 PM ET] your ability to reinvest but then also [6:09:46 PM ET] just the competing forces within the [6:09:46 PM ET] p and l of these businesses that are doing so well and is the [6:09:52 PM ET] restructuring does that give you [6:09:52 PM ET] enough capacity to do it without [6:09:58 PM ET] a noticeable impact to margins longer term [6:09:58 PM ET] and i have a follow-up [6:10:04 PM ET] great thank you so much for your question so oh first of all [6:10:10 PM ET] you know we're very focused on pursuing [6:10:16 PM ET] opportunities overall that can add gmv and operating income dollars [6:10:16 PM ET] even if they carry a lower percentage take rate you mentioned that [6:10:22 PM ET] you know the vehicles business is a perfect example we've got high value transactions [6:10:22 PM ET] growing at you know triple digit growth [6:10:28 PM ET] and it taps into a very large addressable market that complements p and a [6:10:28 PM ET] when we look at [6:10:34 PM ET] picking you know which strategic priorities we think are gonna drive the best [6:10:40 PM ET] balance between top line and bottom line we really [6:10:40 PM ET] evaluate the opportunities and the earnings overall that [6:10:46 PM ET] they can generate not [6:10:46 PM ET] really looking at optimizing for take rate because we really believe that investment [6:10:52 PM ET] in a variety of businesses both provides durability overall to the business [6:10:58 PM ET] and also enables us to really drive top line and bottom line growth [6:11:04 PM ET] that that's really helpful and then maybe [6:11:04 PM ET] quick one for jamie the live commerce [6:11:04 PM ET] opening up to more sellers [6:11:10 PM ET] during the summertime i would love your big picture thoughts on the [6:11:16 PM ET] addressable categories for live commerce there's a perception [6:11:22 PM ET] that it's highly targeted towards things like pack breaking [6:11:22 PM ET] but when you talk to industry participants it seems to be effective [6:11:22 PM ET] categories we might not have expected [6:11:22 PM ET] can you [6:11:28 PM ET] talk about your long term ambitions to see live commerce touch a lot of aspects of ebay's offering [6:11:34 PM ET] yeah we believe ebay live has a a broad appeal across [6:11:40 PM ET] a lot of different categories and segments and so when you look at it it's definitely [6:11:46 PM ET] strong in collectibles but that's a cause trading cards coins etcetera [6:11:46 PM ET] but we see a lot of strength from a lot of other areas fashion [6:11:52 PM ET] handbag watches home and garden [6:11:58 PM ET] i mean i think just going on to the live hub you can see kind of [6:11:58 PM ET] the breadth of things that are on the on the platform [6:12:04 PM ET] and as it gets more popular and more mainstream [6:12:04 PM ET] you see kinda even more different types of sellers coming onto the platform to drive live [6:12:10 PM ET] because they really feel like it can drive velocity you know over time what works [6:12:10 PM ET] excited by is that we see [6:12:16 PM ET] the live business and our core business as highly synergistic [6:12:22 PM ET] so if i look over the trailing twelve months ebay live sellers [6:12:22 PM ET] live sellers generate roughly twice as much gmv [6:12:28 PM ET] on the core marketplace as they sold in live events [6:12:28 PM ET] and we're also seeing higher engagement and spending among live buyers [6:12:34 PM ET] and much of that is incremental outside of live events so overall we think it's got [6:12:40 PM ET] obviously a a large and rapidly growing addressable market [6:12:40 PM ET] and we don't think it's bound by categories we're seeing it continue to [6:12:46 PM ET] expand into new categories as more of our core sellers [6:12:52 PM ET] realize what live can do it helps them you know build a better reputation [6:12:52 PM ET] it helps them build community it helps introduce buyers into their product [6:12:58 PM ET] and that's why you're seeing kinda more and more categories of sellers adopt live [6:13:04 PM ET] your next question comes from the line of nathan [6:13:10 PM ET] feather with morgan stanley please unmute your line and ask your question [6:13:10 PM ET] hey everyone thanks for taking the question and congrats on the strong results here [6:13:16 PM ET] one follow-up on live there exciting to see the incremental traction [6:13:22 PM ET] how do you think what are the major gating factors that you see today in order to unlock [6:13:28 PM ET] additional growth in that category and then any way to think about or [6:13:28 PM ET] quantifying some of the relationship between [6:13:28 PM ET] core gmv growth and live growth thank you [6:13:34 PM ET] yeah thanks for the question so [6:13:40 PM ET] look we're excited live had another record quarter and it's at a multibillion dollar [6:13:46 PM ET] annualized gmv run rate with growth well into the triple digits [6:13:46 PM ET] similar to recent quarters you know i think self-service is a big [6:13:52 PM ET] part of that you know previously it had been gated by how we were bringing on sellers [6:13:52 PM ET] now we're able to really open the live up to more sellers and bring them onto the marketplace [6:13:58 PM ET] we've been driving demand in new and compelling ways we launched multistreaming [6:14:04 PM ET] that allows sellers to leverage their social audiences to bring into their lives on ebay [6:14:10 PM ET] we've redesigned the live hub to help buyers find more [6:14:10 PM ET] so we continue to expand in terms of countries and categories that that we're going after [6:14:16 PM ET] and i would say every you know week or two we're adding new features at the request of sellers [6:14:22 PM ET] so this quarter we added flash deals which has been well received [6:14:28 PM ET] we built new ai powered moderation tools [6:14:28 PM ET] for host and that gives kinda more protection and more trust in the platform [6:14:34 PM ET] which has been important for us and you know overall what we see is that [6:14:40 PM ET] know we see this halo effect with core and it makes a lot of sense right which is that [6:14:46 PM ET] if i find you during live that's gonna help accelerate the core business [6:14:46 PM ET] and if i'm already core seller and you're doing lives or core buyer i'm doing lives [6:14:52 PM ET] you see that synergy and that's why i was saying you know when you look over the trailing twelve months [6:14:58 PM ET] our live sellers did twice as much gmv on core [6:14:58 PM ET] as they did on live events and i talked last quarter about what we were seeing from [6:15:04 PM ET] buyers which is you know buyers are spending seventy percent more when they get involved [6:15:10 PM ET] with live versus comparable buyers [6:15:10 PM ET] so it really is kind of this you know halo effect of core and live working together [6:15:16 PM ET] that's exciting for our sellers and exciting for the growth potential of live [6:15:22 PM ET] great that's really helpful and then on depop help us [6:15:28 PM ET] think through how you're determining the appropriate level of marketing [6:15:28 PM ET] spend to allocate to that business and any metrics you're keenly watching as it [6:15:28 PM ET] goes through that hyper growth phase [6:15:34 PM ET] yeah look we're feeling great about the strong q three results we saw [6:15:40 PM ET] us gmv monthly active users and sold items more than double [6:15:46 PM ET] year over year on a pro form a basis and you know our trailing twelve month [6:15:46 PM ET] active buyers reach eleven million in q three which is up from nine million [6:15:52 PM ET] and they also reached five million active sellers so really good kind of traction [6:15:58 PM ET] across the base i think the other thing that we're seeing is that the [6:15:58 PM ET] quality of the buyers that are coming onto the marketplace are very strong [6:16:04 PM ET] the new cohorts that we're seeing are buying and selling more than prior cohorts [6:16:10 PM ET] and the repurchase the relist and the resell rates [6:16:10 PM ET] are all improved year over year so across the board we're seeing the metrics [6:16:16 PM ET] that we wanna see peggy anything you wanna add on that yeah i would just [6:16:22 PM ET] add that you know the investments that we're making you know and in marketing and shipping and portability [6:16:28 PM ET] are really supported by the strong customer engagement that we're seeing [6:16:28 PM ET] and we're managing these investments across ebay and depop [6:16:34 PM ET] allocating resources towards the opportunities with the strongest returns [6:16:34 PM ET] while also continuing to drive efficiencies across both businesses [6:16:40 PM ET] and then we're increasing and you know increasingly leveraging [6:16:46 PM ET] synergies between ebay and depop particularly in areas like shipping [6:16:46 PM ET] so the distinction between the investments we're making in each one is [6:16:52 PM ET] starting to become a little more blurred because we're really seeing the the complementary nature of the two platforms [6:16:52 PM ET] platforms together [6:16:52 PM ET] very helpful thank you [6:16:58 PM ET] your next question comes from the line of deepak mathivanan with cantor fitzgerald [6:17:04 PM ET] fitzgerald please unmute your line and ask your question [6:17:04 PM ET] great thanks for taking the question [6:17:10 PM ET] jamie when chatgpt was growing fast [6:17:16 PM ET] you made it a priority to improve ai capabilities at ebay [6:17:16 PM ET] both in terms of user experience seller tools and also in several other places [6:17:22 PM ET] now with muse how are you thinking about the product [6:17:22 PM ET] for the agentic era on ebay for buyers and sellers [6:17:28 PM ET] maybe also talk a little bit you know related to it specifically on ecommerce [6:17:34 PM ET] right like now it seems like you know with agentic tools like news growing [6:17:34 PM ET] the friction in inventory cataloging listing transaction [6:17:34 PM ET] can be eliminated meaningfully [6:17:40 PM ET] do you see this already in consumer behavior at this time in these [6:17:46 PM ET] categories and how is ebay planning to tap into this opportunity thanks so much [6:17:52 PM ET] yeah thanks for the question i would i [6:17:52 PM ET] start by saying that you know i agree ai is meaningfully contributing even to the growth we're seeing [6:17:58 PM ET] today on the marketplace you know you talked about listing and cataloging part of the reason why we're [6:18:04 PM ET] expanding magical listing i talked about you know we're now in six major markets [6:18:04 PM ET] expanding into seller cohorts in us uk [6:18:10 PM ET] and in germany is because of the you know the results of what we're [6:18:16 PM ET] seeing you know i talked about australia seeing thirty percent more listings [6:18:16 PM ET] per attempter and reduced listing time we're seeing the same type of [6:18:22 PM ET] thing with our own internal tests as agentic as it relates to search [6:18:22 PM ET] and discovery and buying behavior and we think you know as a leading destination [6:18:28 PM ET] of ecommerce we're uniquely positioned to be one of the biggest beneficiaries of ai [6:18:34 PM ET] because it's really helping us reduce that transactional friction [6:18:34 PM ET] in a scalable way especially because you know we're primarily [6:18:40 PM ET] a non new and seasoned inventory marketplace very different than [6:18:46 PM ET] you know inventory that's generally out there as it pertains to third party [6:18:46 PM ET] experiences we're continuing to test and learn we're open to approaches that improve [6:18:46 PM ET] discovery of our unmatched inventory [6:18:52 PM ET] while preserving the trusted end to end experience that customers have come to expect from ebay [6:19:04 PM ET] your next question comes from the line of kim [6:19:04 PM ET] with wells fargo please unmute your line and ask your question [6:19:10 PM ET] thank you very much two if i may please first [6:19:10 PM ET] could you talk about [6:19:16 PM ET] your live distribution strategy you talked about [6:19:16 PM ET] allowing or enabling your sellers [6:19:22 PM ET] to to market their offerings elsewhere but [6:19:28 PM ET] is there any thought about you know if you think about live it's not just a commerce experience [6:19:28 PM ET] but it's an entertainment experience as well are there opportunities [6:19:34 PM ET] to syndicate your listings and still capture a lot of the economics [6:19:40 PM ET] and and really benefit some of your your sellers [6:19:40 PM ET] across other properties that are more known for short form entertainment [6:19:46 PM ET] that's that's question one and question two [6:19:46 PM ET] could you just talk about early learnings [6:19:52 PM ET] from the consumer to consumer side what you've seen [6:19:52 PM ET] in out of depop could you talk about the competitive environment in the us [6:19:58 PM ET] vintage has continued to to be quite aggressive in the market and it's [6:20:04 PM ET] seemingly it is growing quite nicely but depop is as well [6:20:10 PM ET] could you just talk about what what you see there what you've learned in in the next quarter and and [6:20:10 PM ET] how that informs your view over the say next to nine next [6:20:16 PM ET] maybe twelve to fifteen months thank you very much [6:20:22 PM ET] yeah sure great so it is one of the things that we're excited by with [6:20:22 PM ET] live distribution is the ability to put it out there both having our sellers do so [6:20:28 PM ET] to do it in cooperation with our sellers so you may see [6:20:34 PM ET] across facebook or instagram our sellers [6:20:34 PM ET] highlighting upcoming streams to target audiences [6:20:40 PM ET] that's work we're doing together with them the reason we launched the multi streaming [6:20:40 PM ET] was it was a a highly requested feature from our sellers [6:20:46 PM ET] a lot of them have large followings across tiktok or instagram or twitch or [6:20:52 PM ET] or other platforms and they wanna be able to drive as much demand to it and so [6:20:52 PM ET] to be able to not only highlight your upcoming shows on ebay live [6:20:58 PM ET] but to multistream them and that's great for us because that brings new buyers [6:21:04 PM ET] to ebay from all of those areas so we're gonna continue to look at more services [6:21:10 PM ET] and more avenues you know what's been great is as we've done self-service [6:21:10 PM ET] we've opened up a lot more streaming hours and that's really you know as you talk about [6:21:16 PM ET] the entertainment factor of ebay live has been important and so we're [6:21:22 PM ET] excited by what that growth has just done to the overall kinda streaming hours and number of [6:21:22 PM ET] lives on the platform you know as it relates to your question on c two c [6:21:28 PM ET] you know we've really strengthened our competitive position over the last several years [6:21:34 PM ET] by sharpening our focus and scale in a really beneficial way you've seen us do that with [6:21:40 PM ET] you know the multiyear growth that we have in focus categories [6:21:40 PM ET] and similarly we see us c two c fashion as a large and underpenetrated [6:21:46 PM ET] market and one that's not a winner take all so you know we're really building from a position of [6:21:52 PM ET] strength with two well established brands between depop and ebay [6:21:52 PM ET] and in in q three ebay's usc to see gmv grew [6:21:58 PM ET] faster than overall us ebay gmv [6:22:04 PM ET] and as we talked about depop's usg more than doubled [6:22:04 PM ET] i think what's interesting ken is when you look at them together which is how we look at it [6:22:10 PM ET] ebay and depop generated approximately nine billion dollars of fashion gmv [6:22:16 PM ET] in the us alone over the trailing twelve months and that's growing in the mid twenty [6:22:16 PM ET] percentage range year over year on a pro form a basis [6:22:22 PM ET] so we're really focused on building on that momentum and investing where we see the strongest [6:22:28 PM ET] returns you know as peggy talked about we're building on depop's strong foundation [6:22:28 PM ET] with ebay's demand our carrier relationships our technology [6:22:34 PM ET] and our marketplace expertise [6:22:34 PM ET] thank you very much [6:22:40 PM ET] your next question comes from the line of colin sebastian with baird [6:22:40 PM ET] please unmute your line and ask your question [6:22:46 PM ET] great thank you maybe a couple [6:22:46 PM ET] for me covering other parts of the business [6:22:52 PM ET] first off on advertising [6:22:52 PM ET] if you're seeing any change in in seller demand there or how you'd frame [6:22:58 PM ET] the opportunity to increase adoption or or penetration rate over time if if that's [6:22:58 PM ET] changed at all [6:23:04 PM ET] and then secondly on international [6:23:10 PM ET] was hoping maybe you could separate the macro pressures [6:23:10 PM ET] on gmv from the progress you're making [6:23:10 PM ET] through c to c and focus categories in those markets maybe to help us understand [6:23:16 PM ET] that dynamic a little bit better thank you [6:23:16 PM ET] sure i can take those [6:23:22 PM ET] nice to talk to you colin [6:23:22 PM ET] so on advertising advertising delivered really healthy growth in q three [6:23:28 PM ET] total revenue increased sixteen percent year over year or [6:23:34 PM ET] fifteen percent on a pro form a basis despite tougher year over year comps [6:23:40 PM ET] in q three we began lapping last year's attribution changes across [6:23:40 PM ET] several international markets marketplace mix is also a factor [6:23:46 PM ET] with some of the faster growth in areas that have lower advertising penetration [6:23:52 PM ET] we do continue to see a lot of growth opportunities through broader seller [6:23:52 PM ET] adoption [6:23:58 PM ET] increased listings penetration and even the expansion of priority off-site and other [6:23:58 PM ET] products so our confidence in the long term [6:24:04 PM ET] remains very strong we're really focused [6:24:10 PM ET] focused on improving returns for sellers and growing advertising in a way [6:24:10 PM ET] that supports sustainable revenue and operating income growth across the entire marketplace [6:24:16 PM ET] i would say as it relates to your question on on the macro [6:24:22 PM ET] you know it's definitely uneven between you know us and international at this point [6:24:28 PM ET] in europe though we have seen some improvement in consumer sentiment particularly in the uk [6:24:28 PM ET] but customers i would say remain selective i think germany continues to face a more challenging [6:24:34 PM ET] spending environment i think the positive thing is despite these macro pressures [6:24:40 PM ET] our strategic initiatives continue to perform well our differentiated chain is [6:24:46 PM ET] selection our value proposition almost become you know a little bit more relevant in this [6:24:46 PM ET] so when you look at pre loved or refurbished or [6:24:52 PM ET] other non new and seasoned inventory it's really giving customers more ways to find what they want and attractive [6:24:58 PM ET] prices it's why you've seen us continue to expand you know more things into [6:25:04 PM ET] our european businesses we expanded eis that we talked about recently [6:25:04 PM ET] obviously we're there with live we brought some new c two c capabilities [6:25:10 PM ET] to italy and france this quarter ones that we had done in australia [6:25:16 PM ET] and we're seeing really healthy you know double digit growth in our c to c business for example [6:25:16 PM ET] in the uk so that that makes us confident that as the macro environment improves [6:25:22 PM ET] the strategy that we have that's working will really continue to drive growth in that market [6:25:28 PM ET] thank you [6:25:28 PM ET] your next question comes from the line of bernard mcternan with needham [6:25:34 PM ET] please unmute your line and ask your question [6:25:40 PM ET] great thanks for taking the question maybe just to start coins became a [6:25:40 PM ET] category in the in the us can you talk about this market a little bit [6:25:46 PM ET] maybe early uptake of authenticity guaranteed and [6:25:52 PM ET] maybe how it differs from the the trading card market [6:25:52 PM ET] yeah you know it's another one of these huge enthusiast categories on the platform where [6:25:58 PM ET] know these coins enthusiasts what's important to them is you know the [6:26:04 PM ET] same type of thing which is they wanna have kinda authenticity guarantee [6:26:10 PM ET] so we launched that in august of this year through a partnership with [6:26:10 PM ET] pcgs we introduced the program at the ana's world fair of money [6:26:16 PM ET] and then we completed the rollout to all sellers in in september [6:26:22 PM ET] you know a fun stat is the first coin authenticated with the two thousand and twenty six [6:26:28 PM ET] cook's island thunder dragon silver coin for nine hundred dollars [6:26:28 PM ET] and i'd say the best way to learn about this industry is actually just go on ebay live [6:26:34 PM ET] and watch the coin sellers you'll see in the commentary etcetera [6:26:40 PM ET] there's just a lot of enthusiasm for this as a as another collectible area [6:26:46 PM ET] and i would just say coins is the next of you know what are many interesting [6:26:46 PM ET] areas in collectibles that we can continue to drive the playbook on [6:26:52 PM ET] and where we're seeing excitement across both the core platform and across live [6:26:58 PM ET] understood thank you and just to follow-up on all the commentary [6:26:58 PM ET] or discussion on depop so far i thought the set the [6:27:04 PM ET] the ecommerce report had a a really interesting stat in terms of the [6:27:10 PM ET] the jump in monthly purchasing from thirty five [6:27:10 PM ET] percent last year to to forty seven percent this year [6:27:16 PM ET] that's that's a really significant jump anything [6:27:16 PM ET] in terms of why you think this is happening right now in the us i know it's i know it's [6:27:22 PM ET] you know a couple of years at least behind europe but why it's happening now in the us [6:27:28 PM ET] yeah look i think i'm seeing this with my own kids and their friends [6:27:28 PM ET] with that increasing behavior and i think it's a secular shift [6:27:34 PM ET] i think you know when you look at it the younger generation specifically is much more phonish [6:27:40 PM ET] on sustainability and driving ecommerce [6:27:40 PM ET] i think initiatives like what depop is doing is really unlocking stuff that [6:27:46 PM ET] sitting in the closets you know i like to say that the average household has four thousand dollars of stuff that [6:27:52 PM ET] could be online and less than twenty percent of it is online [6:27:58 PM ET] you know if you if you talk to gen zs they'll tell you [6:27:58 PM ET] everything that you ever want already exists in this world [6:28:04 PM ET] and what we're doing through magi and depop magical listings in depop is really [6:28:04 PM ET] unlocking that creating less friction [6:28:10 PM ET] and driving that kinda secondhand i guess the last thing i would say is that [6:28:16 PM ET] know i think all the work that we've done in ag has helped build trust in secondhand [6:28:16 PM ET] specifically in categories like watches and handbags and that type of thing [6:28:22 PM ET] and the last is value you know we're seeing strength in our electronics business right now [6:28:28 PM ET] and i find it hard to not buy a refurbished product on ebay [6:28:28 PM ET] because it's coming at a value [6:28:34 PM ET] coming with a two year warranty etcetera and i [6:28:34 PM ET] i'd say the last factor of that increase is just people are realizing [6:28:34 PM ET] the value that they can get from secondhand [6:28:46 PM ET] your next question comes from the line of brian pitts with bmo capital markets [6:28:46 PM ET] please unmute your line and ask your question [6:28:52 PM ET] thanks so much maybe starting with active buyers up [6:28:58 PM ET] two hundred and forty seven million ten percent growth [6:28:58 PM ET] but if you actually exclude depop and ties acquisitions think growth [6:29:04 PM ET] was closer to one percent can you talk about the plans to accelerate [6:29:04 PM ET] really accelerate organic buyer acquisition for the core marketplace [6:29:10 PM ET] beyond these inorganic additions and then maybe a quick one on depop [6:29:16 PM ET] i know you're gonna operate as a separate business but given the size of the investment [6:29:22 PM ET] you maybe talk about specific back end synergies you may realize in [6:29:22 PM ET] search or ai or payments that could be realized without compromising the social forward brand [6:29:28 PM ET] experience for the gen z audience thanks [6:29:34 PM ET] great thanks so much for your question i'll start [6:29:34 PM ET] and answer your question on the buyers so you know we've been encouraged [6:29:40 PM ET] by both the growth of our buyer base as well as the quality of the engagement across the marketplace [6:29:46 PM ET] on a on a pro form a basis the trailing twelve month active buyers grew four percent in [6:29:46 PM ET] to a hundred and forty seven million including depop and ties [6:29:52 PM ET] if you exclude those businesses to your point active buyers grew by over one percent [6:29:58 PM ET] and but that's led by six percent organic growth in the us [6:30:04 PM ET] partially offset by softer trends in international markets so that's you know one factor [6:30:04 PM ET] i'd i'd point out with regard to the difference between us and outside of the us [6:30:10 PM ET] on the core ebay marketplace [6:30:16 PM ET] we had a trailing twelve month enthusiast buyers that grew by over two percent [6:30:16 PM ET] with us enthusiast buyers up nine percent [6:30:22 PM ET] we also focus a lot on the spend per buyer and we saw enthusiast [6:30:28 PM ET] buyers increasing to approximately thirty seven hundred dollars it's been increasing quarter over quarter [6:30:28 PM ET] for the last several years [6:30:34 PM ET] so you know we're really focused on our c to c initiatives [6:30:34 PM ET] better listing tools and discovery [6:30:40 PM ET] ebay live which jamie talked a lot about and targeted marketing [6:30:46 PM ET] all helping us attract customers and giving them more reasons to return [6:30:46 PM ET] to buy more frequently and to deepen their relationship with ebay [6:30:52 PM ET] i'd also just remind that the active buyers is a trailing twelve month metric [6:30:58 PM ET] so it takes time for the stronger gmv momentum that we're seeing [6:30:58 PM ET] to fully translate into buyer growth [6:31:04 PM ET] yeah and on your question on depop and and leveraging kinda core [6:31:10 PM ET] parts of ebay i think we're already seeing the benefits of having these businesses together [6:31:10 PM ET] i'd start with shipping you know access ebay's carrier rates [6:31:16 PM ET] has already lowered depop's shipping and parcel rates making shipping investments [6:31:22 PM ET] more efficient and there's a lot more work for us to do there [6:31:22 PM ET] we've also been you know leveraging ebay's traffic and testing a dedicated module [6:31:28 PM ET] of relevant depop listings and ebay search for select fashion queries [6:31:34 PM ET] which is really connecting our existing shopping demand with depop's inventory [6:31:40 PM ET] i think all the ones that you mentioned brian are areas that over time [6:31:40 PM ET] we are be able to leverage ebay's capability with depop [6:31:46 PM ET] things like our regulatory compliance all the work we've done in authenticity [6:31:52 PM ET] our payment solutions and frankly all the work that we've done with ai to make products [6:31:58 PM ET] list make listings easier to bring onto the marketplace [6:31:58 PM ET] we think all of those over time are opportunities and we have a really robust road map [6:32:04 PM ET] and we're excited to continue to unlock more of the potential [6:32:04 PM ET] through those synergies in q four in two thousand twenty seven and beyond [6:32:10 PM ET] operator could we do one last question please [6:32:16 PM ET] yes your final question comes from the line of mark mahaney with evercore isi please [6:32:16 PM ET] unmute your line and ask your question [6:32:22 PM ET] hey thanks i'll just ask one question on agentic [6:32:22 PM ET] we've had a couple of interesting public data points on [6:32:28 PM ET] how big commerce activities are underlying some of these consumer agents [6:32:34 PM ET] the instinct and and muse how do you view the rise of these i [6:32:40 PM ET] assume there's gonna be more in kind of in the freemium model space [6:32:40 PM ET] think google hinted at that in its earnings call tonight how do you think that's [6:32:46 PM ET] how do you think about those as kind of additional platforms more opportunities to acquire [6:32:52 PM ET] customers anything that suggests to you that it makes it more challenging [6:32:52 PM ET] or less challenging to acquire retain customers thanks lot [6:32:58 PM ET] yeah we we believe that this traffic will be largely incremental [6:33:04 PM ET] to ebay while it's i would say it's very very small today [6:33:10 PM ET] it does bring over new and reactivated buyers at a higher rate [6:33:10 PM ET] than other similar channels on the platform you know i think what's [6:33:16 PM ET] what's great about ebay is you know we have a a very strong and loyal base [6:33:22 PM ET] of of buyers on the platform you know eighty five percent of our traffic is organic [6:33:28 PM ET] enthusiast buyers represent over seventy percent of our gmv [6:33:28 PM ET] they visit us more than once day and as peggy talked about they spend thirty seven hundred dollars [6:33:34 PM ET] but we've got a track record of you know using other channels to [6:33:40 PM ET] bring new buyers to ebay and then turn them into enthusiast buyers [6:33:40 PM ET] on the platform you know importantly even though the traffic is small today we're seeing that [6:33:46 PM ET] roughly half of the new buyers from those referrals come directly to ebay [6:33:52 PM ET] for their subsequent purchases so you know we we we're open to ways to find [6:33:58 PM ET] you know opportunities to bring new traffic in convert them to enthusiast buyers [6:33:58 PM ET] and as i've said upfront you know what's really i think important is that [6:34:04 PM ET] the ai what we've already seen is the ai that our sellers are using [6:34:10 PM ET] and then the ai tools that we're giving to buyers are really having a big impact [6:34:10 PM ET] on the business today through magical listing through other tests that we're doing etcetera [6:34:16 PM ET] so we're excited to keep kinda leveraging those we think it's gonna be a big [6:34:16 PM ET] structural tailwind for ebay [6:34:16 PM ET] thank you jamie [6:34:22 PM ET] thank you for joining this concludes today's call you may now disconnect -- Saidwire · verified quotes, live transcript and a running story from live events · support@saidwire.com