|EBAY's press release:|
eBay Beats The Street; Revenue Up 25 Percent To $2.8B; PayPal Posts First $1B Quarter
By Leena Rao
Wednesday, July 20th, 2011
eBay just posted strong second quarter earnings, reporting that revenue for quarter ended June 30, 2011, increased 25 percent to $2.8 billion, compared to the same period of 2010. Non-GAAP net income came in at $630.9 million, or $0.48 per diluted share. GAAP Net-income actually decreased in the quarter ($283.4 million, or $0.22 per diluted share), a 31 percent drop from the same quarter in 2010. This is related to the charges from the $2.4 billion purchase of GSI Commerce, which closed in June. Analysts expected $0.46 cents per share on $2.6 billion in revenue.
PayPal, once again helped buoy eBay’s business. PayPal’s net total payment volume (TPV) grew 34% to $28.7 billion in the second quarter of 2011 compared to the same period of last year. PayPal, which hit 100 million users in the quarter, delivered its first-ever billion dollar revenue quarter, thanks to strength in the Merchant Services business as well as increased penetration on eBay. PayPal expects more than $3 billion in mobile TPV this year, compared to $750 million in 2010.
As expected by analysts, eBay marketplace business also saw a resurgence in growth, with gross merchandise volume excluding vehicles (GMV) increasing by 17% year over year to $14.7 billion. GMV in the U.S. increased 14% year over year and international GMV increased 19% year over year, resulting from growth in Europe and improved performance in Korea. The company remains on track to double eBay’s mobile GMV including vehicles to over $4 billion in 2011.
eBay CEO and President John Donahoe said in the release: Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating…We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce. We will partner with retailers of all sizes to help them grow in a rapidly shifting, technology-driven multichannel commerce environment, and we will help consumers shop and pay anytime, anywhere, any way.
eBay has been acquiring companies left and right and in the past few months has picked up Zong, Magento, Fig Card and Where.