eBay sitting pretty as revenue soared by 14 percent in Q1

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, Apps, Consumerization, Mobility

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  • Wildcard symbol no longer supported.

    Ebay's search is broken, since the removal of the wildcard symbol searches. Its become a frustrating experience for both seller and buyer.

    I can't see revenues continuing upwards, its now impossible to find things since removal of wildcard searches, buyers/sellers are losing out, the only constant being ebay's cut/commission, which has rocketed.

    For example, people still list laptops as 'HP DV9890EA' etc, and wonder why they only have one or two bids. Its because its impossible to find these types of listings.
  • eBay's financial are all "smoke and mirrors" ...

    eBay's financial are all "smoke and mirrors" ...

    Regardless, hello "MasterPass", goodbye clunky PreyPal—it has not been nice knowing you ... http://bit.ly/UVXx53
    Philip Cohen