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.
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