eBay Inc. stock research
FY2024 Q3
eBay (EBAY) Gross Margin — Quarter Ended Sep 30, 2024
Revenue remained stable sequentially while cost of revenue decreased, leading to a slight improvement in gross margin. Compared to the same quarter a year earlier, revenue grew but cost of revenue also increased, resulting in an unchanged gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue remained stable sequentially while cost of revenue decreased, leading to a slight improvement in gross margin. Compared to the same quarter a year earlier, revenue grew but cost of revenue also increased, resulting in an unchanged gross margin.
- The reduction in cost of revenue from the prior quarter was the primary factor behind the gross margin improvement, as revenue held steady.
- Gross margin improved slightly from the preceding quarter, rising from a lower level, and remained unchanged from the same quarter one year earlier. Revenue was flat sequentially but higher year-over-year, while gross profit was unchanged in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$1.8B
Revenue
$2.6B
Cost of revenue
$727.0M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $2.6B | $1.9B | $710.0M | 72.3% |
| Mar 31, 2024 | $2.6B | $1.9B | $700.0M | 72.6% |
| Jun 30, 2024 | $2.6B | $1.8B | $735.0M | 71.4% |
| Sep 30, 2024 | $2.6B | $1.8B | $727.0M | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.4 pts
Year-over-year change
Sep 30, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue from the prior quarter was the primary factor behind the gross margin improvement, as revenue held steady.
Gross margin improved slightly from the preceding quarter, rising from a lower level, and remained unchanged from the same quarter one year earlier. Revenue was flat sequentially but higher year-over-year, while gross profit was unchanged in both comparisons.
Monitor the trend in cost of revenue, which increased year-over-year despite the sequential decline, and note that the filing reports a decrease in operating cash flows for the nine-month period.