eBay Inc. stock research
FY2023 Q1
eBay (EBAY) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit remained level compared to the prior quarter and the same quarter last year, while cost of revenue was slightly higher than the prior quarter and lower than the year-ago quarter. Gross margin weakened marginally from both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit remained level compared to the prior quarter and the same quarter last year, while cost of revenue was slightly higher than the prior quarter and lower than the year-ago quarter. Gross margin weakened marginally from both the immediately preceding quarter and the same quarter one year earlier.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Gross profit remained constant across all periods, but a slight rise in cost of revenue from the prior quarter caused a small compression in gross margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue and gross profit were unchanged. Compared to the same quarter one year earlier, gross margin was also marginally lower, despite lower cost of revenue, because gross profit did not increase proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.1%
Gross profit
$1.8B
Revenue
$2.5B
Cost of revenue
$700.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $2.5B | $1.8B | $700.0M | 72.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Gross profit remained constant across all periods, but a slight rise in cost of revenue from the prior quarter caused a small compression in gross margin.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased while revenue and gross profit were unchanged. Compared to the same quarter one year earlier, gross margin was also marginally lower, despite lower cost of revenue, because gross profit did not increase proportionally.
Monitor whether cost of revenue continues to increase relative to revenue in future quarters, as that would further pressure gross margin.