eBay Inc. (NASDAQ:EBAY) Q2 2019 Earnings Conference Call - Final Transcript
Jul 17, 2019 • 05:00 pm ET
[Operator Instructions] The first question comes from Heath Terry of Goldman Sachs. Please go ahead, your line is open.
Great, thanks. When we look at GMS growth. I was wondering if you could kind of help disaggregate for us some of the drivers behind that, particularly as it relates to the efficiencies that we're seeing in marketing. How should we separate sort of the impact of those marketing efficiencies versus the ongoing technology improvements and sort of the efforts that you're making around structured data, which I know we've talked about for a while, but also the new product pages. Just wondering, we see the net effect, just hoping you can kind of give us a little bit more on the pluses and minuses behind that?
Yeah, Heath maybe I'll just comment on the numbers and then Devin can elaborate maybe a bit on the product stuff. Generally speaking, overall, if we focus on the U.S., we accelerated point so more or less the same, but if you really tease out the underlying -- some of our export quarter is out of the U.S. did a little bit better and that was partially offset by the internet sales tax dynamics that I laid out. If you look year-over-year and that was versus Q1, but if you look at year-over-year the deceleration really is driven by enlarge by the reduction in marketing spend as we redeploy and reallocate and also cut marketing costs.
And then a little bit as I called out in my prepared remarks year-over-year, a little bit more than a point from internet sales tax. Underneath that we did make a series of product changes that in aggregate haven't yet move the bigger picture number in the U.S., but or I think making a difference to the ecosystem and we feel good about the future.
Yeah, I mean, I'd just add that this year is playing out exactly as we had said it would. And I guess, our confidence is that we have line of sight to the reason GMV is suppressed right now. It's marketing, which is in our control, it's internet sales tax, which will roll out and it will roll out of it at some point next year. So we know those things, they are explainable and to some extent controllable. Underlying that the marketplace is healthy, we've never had more buyers. We've never had more inventory. The product is improving and we are hitting another good stride right now in our product development process. So I have a lot of confidence in the core health and strength of the marketplace, because I can understand why there is a short-term suppression in GMV and that's what we said would happen early in the year, it's exactly playing out as we have said.
Okay, thank you.
Yeah, the other thing I'd add Heath is internationally as I called out there is some pressure, we are down a point quarter-to-quarter. That's really driven by a mix a --