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By Reuters
July 20, 2016

(Reuters) – Online retailer eBay reported better-than-expected quarterly revenue and raised its sales forecast for the year as efforts to revamp its online marketplace start to pay off.

EBay shares (ebay) were up 6.5% after the bell on Wednesday after the company’s board also authorized an additional $2.5 billion stock buyback program.

The company, which spun off PayPal last July, has tackled slowing growth by focusing on small business sellers, while offering a bigger selection of products.

The e-commerce company raised its full-year revenue forecast to a range of $8.85 billion to $8.95 billion, from $8.6 billion to $8.8 billion; and adjusted profit from continuing operations in the range of $1.85 to $1.90, from $1.82 to $1.87 per share.

The improved forecast was a “positive surprise” this early in the year, Wedbush Securities analyst Gil Luria said.

Gross merchandise volume, or the total value of all goods sold on its sites, was up 4 percent at $20.9 billion in the second quarter ended June 30.

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The company’s net income rose to $435 million, or 38 cents per share, from $83 million, or 7 cents per share, a year earlier.

Excluding one-time items, eBay earned 43 cents per share, beating analysts’ expectations by 1 cent, according to Thomson Reuters I/B/E/S.

Revenue rose 5.7 percent to $2.23 billion, ahead of analysts’ average estimate of $2.17 billion.

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