eBay sitting pretty as revenue soared by 14 percent in Q1

Summary:Despite missing the outlook, eBay is looking more solid by the quarter with a focused strategy on mobile and back-end payments infrastructures.


eBay posted a solid earnings statement for the first quarter of 2013 with significant growth for its core products, especially PayPal and Marketplaces.

The e-commerce giant reported first quarter earnings of $677 million, or 51 cents a share (statement). Non-GAAP earnings were 63 cents a share on a revenue of $3.7 billion -- up by 14 percent from the same quarter last year.

eBay was expected to report first quarter earnings of 62 cents a share on a non-GAAP basis on revenue of $3.76 billion.

Based on revenue and earnings across its portfolio, it looks like the mobile and back-end infrastructure strategies are the big drivers for eBay's growth.

Here are some highlights:

  • eBay Inc. gained approximately 2.8 million new customers in Q1 via mobile channels, which contributed to double-digit growth in active users for both PayPal and Marketplaces.
  • PayPal revenue increased by 18 percent to $1.5 billion. Active accounts jumped by five million, a 16 percent increase.
  • Marketplaces revenue increased 13 percent to $2.0 billion with 3.9 million new active users, also a 13 percent increase.
  • GSI Commerce posted $236 million in revenue for the first quarter. The enterprise commerce platform, in particular, generated $807 million in global e-commerce merchandise sales, while its marketing services fee business produced $50 million in revenue.

CEO John Donahoe reflected on the quarter in prepared remarks:

We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than ecommerce. Technology is creating a commerce revolution, and we are in the forefront with strong mobile leadership and a focus on helping retailers and brands engage consumers anytime, anywhere.

However, it's not all sunshine for eBay as it missed on the outlook.

eBay posted a second quarter revenue forecast of $3,800 million to $3,900 million with non-GAAP earnings between 61 and 63 cents per share.

But Wall Street is expecting Q2 earnings of 66 cents a share on revenue of $3.95 billion.

For 2013, eBay is predicting revenue to fall between $16 million and $16.5 million with non-GAAP earnings between $2.70 and $2.75 a share.


Slides via eBay Investor Relations

Topics: E-Commerce, Consumerization, Mobility, Developer


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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