eBay Q2: Good growth, but missed outlook
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.