Wednesday, October 21, 2009
eBAY INC. REPORTS THIRD QUARTER 2009 RESULTS
San Jose, Calif., Oct. 21, 2009 — eBay Inc. (Nasdaq: EBAY) today reported financial results for the third quarter ended September 30, 2009. The e-commerce company posted third-quarter revenue of $2.2 billion, up $120.3 million from the same period last year. The year-over-year revenue growth was driven primarily by the continued growth in PayPal, Skype, the company’s classifieds business as well as growth in eBay’s fixed-price format. The company recorded net income on a GAAP basis of $349.7 million or $0.27 per diluted share, and non-GAAP net income of $501.5 million or $0.38 per diluted share.
GAAP operating margin decreased to 19.8% for the quarter, compared to 24.7% for the same period last year. Non-GAAP operating margin decreased to 28.4% for the quarter, compared to 31.8% for the same period last year. The decrease in operating margins was caused primarily by the recently acquired Bill Me Later, the weaker U.S. dollar, and the company’s continuing shift to faster growing, lower margin businesses, partially offset by cost controls.
eBay Inc. generated $738.2 million of operating cash flow during the third quarter. Free cash flow during the quarter was $563.5 million.
“Our third quarter results were strong with PayPal gaining momentum and market share worldwide and our core eBay business showing positive trends,” said eBay Inc. President and CEO John Donahoe. “We’re delivering on our commitments, executing on our plans and operating smarter and faster.”
Financial Highlights
(presented in millions, except per share data and percentages)
| Third Quarter | 2008 (Q3) | 2009 (Q3) | Change | |
|---|---|---|---|---|
| Net Revenue | $2,118 | $2,238 | 120 | 6% |
| GAAP | ||||
| Net income | $492 | $350 | ($142) | (29%) |
| Earnings (loss) per diluted | $0.38 | $0.27 | ($0.11) | (29%) |
| Non-GAAP | ||||
| Net income | $592 | $502 | ($91) | (15%) |
| Earnings per diluted share | $0.46 | $0.38 | ($0.07) | (16%) |
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