The San Jose, Calif., company is “performing significantly better than expectations shared in its earnings release on April 29,” eBay said in a statement.
It now expects second-quarter revenue to range from $2.75 billion to $2.8 billion. That compares with an April estimate of $2.38 billion to $2.48 billion.
EBay now forecasts non-GAAP earnings per share of $1.02 to $1.06 for the second quarter, up from the April prediction of 73 cents to 80 cents.
The company didn’t update full-year guidance, but it expects full-year performance to better the ranges it disclosed on April 29.
“All major verticals are accelerating significantly compared to previous quarters, including home and garden, electronics, fashion, auto parts and collectibles,” the company said.
“Demand strength is driven by increased organic traffic, better marketing efficiency, and higher platform conversion.”
As for classified-ad revenue, “it’s at the high end of expectations disclosed on the first-quarter-earnings call, with automotive subscription revenues recovering as dealerships reopen across international markets,” the company said.
Still, Morningstar analyst R.J. Hottovy injects a note of caution:
“Despite a strong uptick in covid-19-related demand, we still harbor concerns about eBay's ability to attract new users and keep occasional users engaged as Amazon (AMZN) - Get Report and other online marketplaces continue to find new ways to bring small and midsize business sellers onto their marketplaces.”
EBay shares recently traded at $49.52, up 6.6%; during the session they've traded up as much as 12%. They have soared 39% over the past three months.