eBay delivered strong second quarter, PayPal carries team

Summary:E-commerce giant eBay turned in a strong second quarter as its PayPal unit delivered its first quarter with more than $1 billion in revenue.

E-commerce giant eBay turned in a strong second quarter as its PayPal unit delivered its first quarter with more than $1 billion in revenue.

eBay reported second quarter earnings of $283 million, or 22 cents a share, on revenue of $2.76 billion. Non-GAAP earnings were 48 cents a share. Wall Street was looking for earnings of 46 cents a share on revenue of $2.61 billion.

As for the outlook, eBay projected third quarter non-GAAP earnings of 46 cents a share to 47 cents a share on revenue of $2.85 billion to $2.95 billion. Wall Street was looking for 47 cents a share on revenue of $2.7 billion. For 2011, eBay projected non-GAAP earnings of $1.97 a share to $2 a share on revenue of $11.3 billion to $11.6 billion. The outlook includes the recent acquisition of GSI Commerce.

Overall, PayPal is carrying eBay. PayPal delivered its first $1 billion quarter and had 100.3 million registered accounts, up 15 percent from a year ago.

eBay's marketplace business had gross merchandise volume excluding vehicles of $14.7 billion, up 17 percent from a year ago.

On a conference call, eBay CEO John Donohoe reiterated the company's growth strategy. He said:

We intend to compete and lead in the new retail global environment that we see emerging. Technology-driven innovation is changing how consumers shop and pay, and these changes are blending online and offline into a new global commerce landscape. In this new retail world, consumers expect a seamless experience across multiple channels, whether it's a physical store, a mobile phone, a laptop or any Internet-connected device. In this new world, physical stores will become just another point of access, and location alone is no longer a sufficient competitive advantage. The advantage is the ability to connect with consumers -- any time, anywhere.

Related: Is it time for an eBay renaissance?

Topics: CXO, Banking, E-Commerce, Enterprise Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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