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Earnings

eBay earnings: A hard bargain

eBay logo
eBay
  • Q1 revenue: $2.4 billion (-2% YoY, -16% QoQ, vs. $2.38 billion expected)
  • Q1 earnings: $485 million (-6% YoY, -11% QoQ, below expectations)
  • Q2 guidance: Between $2.38 billion and $2.48 billion in revenue, full-year guidance unchanged.

The big number: Millions are stranded at home, but that doesn't mean they haven't wanted to buy things. eBay narrowly managed to beat analyst expectations for revenue in the quarter, even during the pandemic. That being said, in its last earnings report, the company said it expected to generate between $2.55 billion and $2.60 billion in revenue in Q1, after Q4 revenue came in essentially flat quarter-over-quarter — so business isn't exactly booming. Shares in eBay fell more than 3% on the news in after-hours trading.

People are talking: "Given the uncertainty surrounding the extent and duration of the impact of the COVID-19 pandemic, it is difficult to predict what may result as shelter-in-place guidelines are eased and lifted and how global consumer demand, the effects of COVID-19 on the general economy, seller inventory and advertising spending may evolve over time," the company said in a release.

Opportunities: The majority of eBay's revenue comes from sales on its marketplace sites, and active buyers there grew by 2% in the quarter, to a total of 174 million global active buyers. Hopefully for eBay, more window-shoppers turn into paying customers in the coming quarter.

Threats: Though not its largest business segment, eBay's Classifieds business — which includes local buyer-and-seller exchanges around the world, like Gumtree in the U.K. — is unsurprisingly taking a hit in the time of social distancing. The segment posted revenue of $248 million for the quarter, down 3% quarter-over-quarter, and as long as people are still stuck under quarantine, it doesn't seem like they're going to be wanting to buy and sell things in person anytime soon.

Note that Q1 saw eBay complete the sale of the ticketing company StubHub to Viagogo for $4.1 billion. Windfalls like that don't come along every quarter.

The power struggle: Like every other company selling or marketing products during the pandemic, eBay is having to police what people are listing on its site, and has tried to mitigate the fallout of the coming recession on its sellers as much as possible. The company said it has pulled 15 million listings to date that "make false health claims or offer products at inflated prices." It's also deferred fees for hundreds of thousands of sellers to help with their cash flow. They are the backbone of the business, and eBay needs sellers to stay afloat during the pandemic for it to stay in the black.
Protocol | China

China’s era of Big Tech Overwork has ended

Tech companies fear public outcry as much as they do regulatory crackdowns.

Chinese tech workers are fed up. Companies fear political and publish backlashes.

Photo: Susan Fisher Plotner/Getty Images

Two years after Chinese tech workers started a decentralized online protest against grueling overtime work culture, and one year after the plight of delivery workers came under the national spotlight, a chorus of Chinese tech giants have finally made high-profile moves to end the grueling work schedules that many believe have fueled the country's spectacular tech boom — and that many others have criticized as exploitative and cruel.

Over the past two months, at least four Chinese tech giants have announced plans to cancel mandatory overtime; some of the changes are companywide, and others are specific to business units. ByteDance, Kuaishou and Meituan's group-buying platform announced the end of a policy called "Big/Small Week," where a six-day workweek is followed by a more moderate schedule. In early June, a game studio owned by Tencent rolled out a policy that mandated employees punch out at 6 p.m. every Wednesday and take the weekends off.

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Shen Lu

Shen Lu is a reporter with Protocol | China. She has spent six years covering China from inside and outside its borders. Previously, she was a fellow at Asia Society's ChinaFile and a Beijing-based producer for CNN. Her writing has appeared in Foreign Policy, The New York Times and POLITICO, among other publications. Shen Lu is a founding member of Chinese Storytellers, a community serving and elevating Chinese professionals in the global media industry.

Over the last year, financial institutions have experienced unprecedented demand from their customers for exposure to cryptocurrency, and we've seen an inflow of institutional dollars driving bitcoin and other cryptocurrencies to record prices. Some banks have already launched cryptocurrency programs, but many more are evaluating the market.

That's why we've created the Crypto Maturity Model: an iterative roadmap for cryptocurrency product rollout, enabling financial institutions to evaluate market opportunities while addressing compliance requirements.

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Caitlin Barnett, Chainanalysis
Caitlin’s legal and compliance experience encompasses both cryptocurrency and traditional finance. As Director of Regulation and Compliance at Chainalysis, she helps leading financial institutions strategize and build compliance programs in order to adopt cryptocurrencies and offer new products to their customers. In addition, Caitlin helps facilitate dialogue with regulators and the industry on key policy issues within the cryptocurrency industry.
Power

Brownsville, we have a problem

The money and will of Elon Musk are reshaping a tiny Texas city. Its residents are divided on his vision for SpaceX, but their opinion may not matter at all.

When Musk chose Cameron County, he changed its future irrevocably.

Photo: Verónica G. Cárdenas for Protocol

In Boca Chica, Texas, the coastal prairie stretches to the horizon on either side of the Gulf of Mexico, an endless sandbar topped with floating greenery, wheeling gulls and whipping gusts of wind.

Far above the sea on a foggy March day, the camera feed on the Starship jerked and then froze on an image of orange flames shooting into the gray. From the ground below, onlookers strained to see through the opaque sky. After a moment of quiet, jagged edges of steel started to rain from the clouds, battering the ground near the oceanside launch pad, ripping through the dunes, sinking deep into the sand and flats.

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Anna Kramer

Anna Kramer is a reporter at Protocol (Twitter: @ anna_c_kramer, email: akramer@protocol.com), where she writes about labor and workplace issues. Prior to joining the team, she covered tech and small business for the San Francisco Chronicle and privacy for Bloomberg Law. She is a recent graduate of Brown University, where she studied International Relations and Arabic and wrote her senior thesis about surveillance tools and technological development in the Middle East.

People

Facebook’s push to protect young users is a peek at the future of social

More options, more proactive protections, fewer one-size-fits-all answers for being a person on the internet.

Social media companies are racing to find ways to protect underage people on their apps.

Image: Alexander Shatov/Unsplash

Social media companies used to see themselves as open squares, places where everyone could be together in beautiful, skipping-arm-in-arm harmony. But that's not the vision anymore.

Now, Facebook and others are going private. They're trying to rebuild around small groups and messaging. They're also trying to figure out how to build platforms that work for everyone, that don't try to apply the same set of rules to billions of people around the world, that bring everyone together but on each user's terms. It's tricky.

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David Pierce

David Pierce ( @pierce) is Protocol's editor at large. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Power

Who owns that hot startup? These insiders want to clear it up.

Cap tables are fundamental to startups. So 10 law firms and startup software vendors are teaming up to standardize what they tell you about investors' stakes.

Cap tables describe the ownership of shares in a startup, but they aren't standardized.

Illustration: Protocol

Behind every startup, there's a cap table. Startups have to start keeping track of who owns what, from the moment they're created, to fundraising from venture capitalists, to an eventual IPO or acquisition.

"Everything that happens that is a sexy thing that's important to the tech world, it really is something having to do with the cap table," said David Wang, chief innovation officer at the Wilson Sonsini Goodrich & Rosati law firm.

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Biz Carson

Biz Carson ( @bizcarson) is a San Francisco-based reporter at Protocol, covering Silicon Valley with a focus on startups and venture capital. Previously, she reported for Forbes and was co-editor of Forbes Next Billion-Dollar Startups list. Before that, she worked for Business Insider, Gigaom, and Wired and started her career as a newspaper designer for Gannett.

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