eBay on Wednesday reported less than spectacular second quarter earnings, as the company ticks over another fiscal quarter.
The online shopping giant reported second quarter GAAP earnings of $640 million, or 49 cents a share (statement). Non-GAAP earnings were 63 cents a share. Revenue stood at $3.9 billion, up 14 percent on the same quarter a year prior.
Wall Street was looking for eBay to report second quarter non-GAAP earnings of 63 cents a share on revenue of $3.89 billion.
eBay chief executive and president John Donahoe said in prepared remarks: "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."
He warned that macroeconomic "headwinds" in Europe and Korea will pose a challenge for the second half of the year, but the company remains "confident" in its goals and its gains in customer growth.
By the numbers:
- Mobile attracted three million new customers in the quarter and growing more than 90 percent
- PayPal gained 4.7 million active registered accounts, ending the quarter with 132 million in total
- PayPal's revenue increased 20 percent to $1.6 billion
- Marketplaces gained 3.5 million active users in the period and ended the quarter with 120 million, a 14 percent increase
- Marketplaces' revenue increased 10 percent to $2 billion
- Cash and equivalents stood at $11.7 billion at the end of the quarter, an increase from $11.5 billion at the end of December 2012
GSI Commerce was also renamed eBay Enterprise. The division contributed $246 million in revenue for the second quarter, an 11 percent increase. Its enterprise commerce platform generated $815 million in global e-commerce.
eBay's operating margin decreased to 19.3 percent for the second quarter, down from 20.5 percent year-over-year. And, the company bought back about $466 million worth of common stock during the quarter.
Year to date, eBay's share price has risen by 12 percent from just shy of $51 per share to $57.38 per share. During the past seven months, eBay's shares have fluctuated badly.
But after the bell in after-hours trading, investors did not like the news, with shares dropping by $3.60 in the matter of minutes.
Looking ahead, the company firm said it expects to earn revenues in the range of $3.85-$3.95 billion during the coming third quarter. eBay said it expects non-GAAP earnings of 61-63 cents per share.
Wall Street was looking for eBay to report earnings of 65 cents a share on revenue of $3.968 billion.