eBay's Q2 earnings beat estimates despite analyst fears over security breach
A major cyber attack on eBay back in May was widely expected by analysts to play into the e-commerce giant's second quarter earnings report, published after the bell on Wednesday.
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The San Jose, Calif.-headquartered corporation reported a net income of $676 million, or 53 cents per share (statement).
Non-GAAP earnings were 69 cents per share on a revenue of $4.4 billion, up 13 percent year-over-year.
Wall Street was looking for earnings of 68 cents per share on a revenue of $4.38 billion.
In prepared remarks, CEO John Donahoe acknowledged the second quarter was "challenging," but praised the commerce and payments platforms for delivering growth upwards of 26 percent annually.
PayPal generated another strong quarter while eBay's growth was hampered by its global password reset for all users. We continued our momentum in the four competitive commerce battlegrounds of mobile, local, global and data. We delivered new experiences for PayPal and eBay customers, extended PayPal and eBay into new markets, made it simple and easy for developers to integrate PayPal and offered new ways to help merchants grow.
All three of eBay's principal departments grew revenue on an annual basis. The enterprise group delivered revenue of $267 million as gross merchandise sales grew by 15 percent and same-store sales by nearly as much at 14 percent.
PayPal accounted for $1.9 billion in revenue while growing the user base by 15 percent (approximately four million new active registered accounts) to end the quarter with roughly 152 million users.
Marketplaces rounded out the quarter with $2.2 billion in revenue and 3.8 million users to end the quarter with 149 million active buyers, up 14 percent.
For the current quarter, analysts are expecting earnings of at least 71 cents per share on a revenue of $4.42 billion.
eBay followed up with a slightly softer revenue guidance range between $4.3 billion and $4.4 billion with earnings projected to fall between 65 and 67 cents a pop.
For the year, eBay's revenue forecast calls for a range of $18 billion to $18.3 billion with earnings between $2.95 and $3.00.
Slides via eBay Investor Relations