eBay Inc. today reported that revenue for Q2FY2011, increased 25% to $2.8 billion, compared to the same period of 2010. We recorded Q2 net income on a GAAP basis of $283.4 million, or $0.22 per diluted share, and non-GAAP net income of $630.9 million, or $0.48 per diluted share. In the second quarter GAAP net income decreased year over year compared to the second quarter of 2010 due to charges related to the GSI Commerce (GSI) transaction. The year-over-year increase in second quarter non-GAAP earnings per diluted share was driven by solid top-line growth and productivity.
“Second quarter revenue and earnings were strong, as PayPal surpassed 100 million active accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerated,” said eBay Inc. President and CEO John Donahoe. “We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce and partner with retailers of all sizes in a rapidly shifting, technology-driven multichannel global commerce environment. We are focused on helping consumers shop and pay anytime, anywhere, any way.”
PayPal
PayPal ended the quarter with 100.3 million active registered accounts, a 15% increase year over year. PayPal’s net total payment volume (TPV) grew 34% to $28.7 billion in the second quarter of 2011 compared to the same period of last year. PayPal delivered its first-ever billion dollar revenue quarter, driven by strong performance in its Merchant Services business as well as increased penetration on eBay. PayPal continued to demonstrate strength in mobile payments and now expects more than $3 billion in mobile TPV this year, compared to $750 million in 2010.
eBay Marketplaces
eBay Marketplaces’ business also delivered strong Q2 performance. Gross merchandise volume excluding vehicles (GMV), increased by 17% year over year to $14.7 billion. GMV in the U.S. increased 14% year over year, the third consecutive quarter of acceleration, driven by improved customer experiences in search and navigation. International GMV increased 19% year over year, resulting from stable growth in Europe and improved performance in Korea, as well as positive impacts from foreign currency movements.
eBay Mobile
Downloads of eBay’s mobile apps surpassed 45 million globally since the launch of mobile in the third quarter of 2008. The company remains on track to double eBay’s mobile GMV including vehicles to $4 billion in 2011.
GSI Commerce
The company completed the acquisition of GSI, a leading provider of ecommerce and interactive marketing services, on June 17, 2011. GSI will operate as a stand-alone business unit. The GSI segment contributed $23.8 million to revenue for the period from June 17, 2011, to June 30, 2011.
Business Outlook
** Q3 2011 – eBay expects net revenues in the range of $2.850 to $2.950 billion with GAAP earnings per diluted share in the range of $0.37 to $0.38 and non-GAAP earnings per diluted share in the range of $0.46 to $0.47.
** Full year 2011 – eBay now expects net revenues in the range of $11.300 to $11.600 billion with GAAP earnings per diluted share in the range of $2.41 to $2.44 and non-GAAP earnings per diluted share in the range of $1.97 to $2.00.
eBay Earnings Call / Live-blogging via StockTwits
As usual, there are a number of options for you to get more information around today’s earnings announcement. You can listen along to the live eBay earnings call. You can follow along with my tweets in real-time, beginning at 2pm PT.
You can access the full Q2 eBay earnings announcement.
For folks interested in following the entire conversation on StockTwits, go to http://stocktwits.com/symbol/EBAY.
Cheers,
RBH
