eBay Inc. stock research
FY2023 Q2
eBay (EBAY) Gross Margin — Quarter Ended Jun 30, 2023
Revenue remained stable while cost of revenue increased, causing gross profit to hold steady and gross margin to weaken slightly. Compared to the prior quarter and the same quarter last year, gross margin was lower due to a higher cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue remained stable while cost of revenue increased, causing gross profit to hold steady and gross margin to weaken slightly. Compared to the prior quarter and the same quarter last year, gross margin was lower due to a higher cost of revenue relative to revenue.
- The increase in cost of revenue relative to stable revenue was the primary factor behind the decline in gross margin.
- Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier, as revenue was unchanged but cost of revenue was higher in both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.7%
Gross profit
$1.8B
Revenue
$2.5B
Cost of revenue
$718.0M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.9 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% |
| Jun 30, 2023 | $2.5B | $1.8B | $718.0M | 71.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.4 pts
Year-over-year change
Jun 30, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to stable revenue was the primary factor behind the decline in gross margin.
Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier, as revenue was unchanged but cost of revenue was higher in both periods.
Monitor the trend of cost of revenue relative to revenue, as its increase has been the direct driver of margin compression.