eBay Inc has reported disappointing results for its first quarter, driving down premarket shares by 8.6%.
The global e-commerce platform gave revenue guidance that fell short of analysts’ expectations, and laid the blame on weak online demand, competitive challenges, and disruptions to global supply chains for its weak performance.
For the first quarter, eBay expects adjusted profits between $1.01 and $1.05 on revenue of $2.43bn to $2.48bn, a decline of 7% to 5% from the same period last year.
eBay's better-than-expected fourth quarter earnings were overshadowed by its disappointing guidance. The fourth quarter ended December 31 saw eBay earn $1.05 per share on revenue of $2.6bn.
ebay's margins will be squeezed further as it ramps up investments amid declining active users.
During the quarter, annual active buyers dropped by 9% to 147mln. Active sellers also declined by 8% to 17mln.