Ebay shares fell by more than 4% at times in after-hours trading on Wednesday after the US-based e-commerce giant released its outlook for the current quarter.
The industry pioneer predicted sales of between $2.49 billion and $2.54 billion for the current quarter. Analysts had expected an average of $2.56 billion. Earnings per share could also fall short of market expectations.
EBay is in fierce competition with Amazon and Chinese online retailers such as Temu and Shein, among others. The number of active buyers on the platform remained unchanged at 132 million for the fourth consecutive quarter.
In the first quarter, revenue increased by 2% year-on-year to $2.6 billion. Net income fell to $438 million from $567 million a year 12 months earlier.
EBay announced in January that it would cut around 1,000 jobs in order to reduce costs. The cuts are estimated to affect 9% of full-time employees, as was reported at the time. EBay boss Jamie Iannone justified the redundancies by saying that expenses had grown faster than the business.