Ebay’s Enterprise segment earned $267 million in revenues in the second quarter ended June 30, 2014 helping sporting goods retailers, professional sports leagues and other retailers grow their gross merchandise sales 15 percent to $940 million. Ebay said the segment, formerly known as GSI Commerce, enabled its clients to grow same-store sales 14 percent.
That compared with an overall increase in revenue of 13 percent to $4.4 billion for the global commerce platform and payments leader, compared to the same period in 2013. GAAP earnings increased to $676 million or $0.53 per diluted share, and non-GAAP earnings increased to $868 million or sixty nine cents per diluted share driven by strong enabled commerce volume growth.
EBay reported that is “commerce ecosystem” continued to gain share, with total company enabled commerce volume (ECV) increasing 26 percent in the second quarter to $62 billion. Mobile ECV advanced 68 percent to $12 billion representing 20 percent of volume. Mobile downloads since inception were 260 million and attracted 6.6 million new customers in the quarter. Cross-border trade grew 26 percent, representing $13 billion, or 22 percent, of total company ECV.
“In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 percent,” said eBay Inc. President and CEO John Donahoe. “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.”
PayPal net total payment volume (TPV) grew 29 percent with Merchant Services volume up 35 percent and on-eBay volume up 13 percent. Revenue grew to $1.9 billion. PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15 percent. Global on-eBay penetration increased to 79.8 percent. PayPal signed a deal with GE to extend its relationship offering a dual branded retail credit card and committed to purchase the loan portfolio in 2016 for an estimated $1 billion, based on the size of the portfolio at that time. This provides PayPal with flexibility to expand its credit offerings to consumers and merchants while improving its ability to manage transaction expense and reinvest back into the business to accelerate payment volume growth.
EBay Marketplaces gross merchandise volume (GMV) grew 12 percent, with the U.S. up 10 percent and International up 14 percent. Revenue grew to $2.2 billion. Marketplaces gained 3.8 million new buyers to end the quarter with 149 million active buyers, up 14 percent. Top rated sellers in the company's three largest markets grew their same-store sales 14 percent and offered free shipping on 56.4 percent of transactions across those markets. The selection of items available on Marketplaces grew to over 700 million listings, including both platform and non-platform offerings, reflecting the success of improved selling initiatives, particularly on mobile.
Ebay expects net revenues for the third quarter in the range of $4.3 – $4.400 billion with GAAP earnings per diluted share in the range of fifty cents to fifty three cents and non-GAAP earnings per diluted share in the range of sixty five to sixty seven cents. For the full year 2014, the company expects net revenues in the range of $18.0-$18.3 billion with GAAP earnings per diluted share in the range of four cents to nine cents and non-GAAP earnings per diluted share in the range of $2.95 – $3.00.
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eBay Inc.
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2014 |
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