Driven By Marketplace And PayPal Growth, eBay’s Q2 Revenue Up 14 Percent To $3.9B

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Intel Misses In Q2 2013, Reports EPS Of $0.39 And Revenue Of $12.8 Billion

As expected, eBay reported decent financial results in Q2 2013 today. Revenue was up 14% to $3.9 billion, compared to the same period of 2012. The company reported second quarter net income on a GAAP basis of $640 million, or $0.49 per diluted share, and non-GAAP net income of $822 million, or $0.63 per diluted share. GAAP Net Income was actually down 6 percent in the quarter.

The marketplace and e-commerce company was expected to post earnings at $0.63 per share, on revenue of $3.9 billion, so expectations were in-line with what was reported.

“We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth,” said eBay Inc. President and CEO John Donahoe. “Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership.”

Total commerce across all of ebYa’s platforms, including Marketplaces, PayPal and eBay Enterprise (formerly GSI Commerce) was up 21% for the quarter, to $51 billion. Cross-border trade in the second quarter was $11 billion, representing 22% of the company’s total ECV. Mobile attracting 3 million new customers in the quarter and is growing at more than 90%.

PayPal revenue increased 20% to $1.6 billion and the payments arm gained 4.7 million active registered accounts in the period and ended the quarter with 132 million, a 17% increase. PayPal’s net total payment volume (TPV) grew 24% to $43 billion driven by consumer and merchant use of PayPal both on and off eBay.

Marketplaces saw revenue of $2 billion, increasing 10%, or 12% excluding the gain from the resolution of an indirect tax dispute in 2012. Marketplaces gained 3.5 million active users in the period and ended the quarter with 120 million, a 14% increase. Gross merchandise volume (GMV), excluding vehicles, increased 13% to $18 billion. Fixed price GMV grew 17% globally and represented 69% of total GMV. U.S. GMV, excluding vehicles, increased 16% to $7.3 billion driven by mobile and momentum in the parts & accessories and home & garden categories. International GMV, excluding vehicles, increased 11% to $11 billion, showing stable growth while facing a tougher macroeconomic environment.

eBay Enterprise contributed $246 million in revenue for the second quarter, an 11% increase. eBay has not seen net income drop over the past few quarters, so it should be interesting to see what Donahoe says about this on the call.

In late March, Donahoe projected eBay’s revenue to grow to a whopping $23.5 billion in 2015. The three areas where the company is going to be betting on include expanding globally, investing in local commerce, and developing additional mobile apps. In June, the company revealed that it was planning a partnership with Kate Spade that to create a “pop up” shop with a gigantic touchscreen, “shoppable” store windows. eBay also bought Belgian classifieds company 2dehands.be last month.

PayPal is also focusing on growth, acquiring IronPearl in April. PayPal also debuted a new ecommerce login technology, and debuted its Cash for Registers program to encourage merchants to switch to PayPal-powered point-of-sale solutions.

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