eBay (EBAY 0.60%) is seeing strong demand during the COVID-19 pandemic, so much so that it has raised its revenue and EPS outlook for the second quarter.
In a press release, the e-commerce company said it added about six million buyers in April and May and that its business is performing "significantly" better than the company anticipated when it reported first-quarter results on April 29. With people stuck at home under shelter-in-place orders, they have turned to e-commerce to get their goods.
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As a result of strong demand, eBay now expects revenue to come in between $2.75 billion and $2.8 billion in the current quarter, representing 13% to 16% year-over-year growth. Previously it had expected revenue of between $2.38 billion and $2.48 billion, which would be down 2% to 2% growth. The tech stock said Non-GAAP EPS is forecasted at between $1.02 to $1.06 a share, up from $0.73 to $0.80 a share. If eBay hits the high end of the EPS range it will represent growth of 60%. eBay isn't updating its full-year guidance but said it's likely to be higher than it previously anticipated.
According to the tech stock, it saw strength in global gross merchandise volume or GMV in April, which continued through May. All of its verticals are seeing significant acceleration compared to prior quarters. eBay called out Home & Garden, Electronics, Fashion, Auto Parts, and Collectibles as areas that are experiencing strong demand. The demand is coming from a combination of organic traffic, enhanced marketing, and higher conversions on its platform. eBay also said active buyer growth is accelerating amid the pandemic, with eBay adding 6 million new and reactivated buyers in April and May.
In conjunction with the earnings announcement, the e-commerce stock also said it's donating $1.3 million to the NAACP Legal Defense Fund and Equal Justice Initiative to fight systemic racism and injustice.
