EBay Inc., which acquired GSI Commerce earlier this year, reported third-quarter earnings rose 13 percent. Revenues for the third quarter ended Sept. 30, 2011, increased 32 percent to $3.0 billion, compared to the same period of 2010.
The company reported third quarter net income on a GAAP basis of $490.5 million, or 37 cents per diluted share, and non-GAAP net income of $628.2 million, or 48 cents per diluted share. The year-over-year increase in third quarter GAAP and non-GAAP earnings per diluted share was driven primarily by strong top-line growth, partially offset by continued investment in key strategic initiatives and the impact of acquisitions.
“Our company reported another strong quarter, with eBay, PayPal and GSI each performing well,” said eBay Inc. President and CEO John Donahoe. “Mobile commerce continues to accelerate as consumers change the way they shop and pay. We expect eBay mobile commerce to generate almost $5 billion in merchandise volume this year and PayPal mobile to exceed $3.5 billion in payment volume. Mobile is one way online and offline shopping are blending into a single commerce environment. We are focused on enabling commerce, helping consumers shop anytime, anywhere, and being the commerce partner of choice for retailers of all sizes.”
The company's PayPal business continued to expand its leadership position in global payments. PayPal ended the quarter with 103.0 million active registered accounts, a 14 percent increase year over year. PayPal revenue increased 32 percent year over year driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption. PayPal's net total payment volume (TPV) grew 31 percent to $29.3 billion in the third quarter of 2011 compared to the same period of last year. PayPal continues to invest in innovation, focusing on the core platform, as well as mobile and point of sale initiatives. PayPal expects to generate more than $3.5 billion in mobile TPV in 2011, up from $750 million in 2010.
The company's Marketplaces business also delivered a strong third quarter performance. Gross merchandise volume (GMV) excluding vehicles increased by 16 percent year over year to $14.7 billion. U.S. GMV excluding vehicles increased 14 percent year over year, driven by continued improvements in customer experience on the site and growth in key shopping categories. International GMV excluding vehicles increased 18 percent year over year to $9.1 billion, reflecting solid growth in Europe, continued improved performance in Korea, as well as a positive impact from foreign exchange. Improved cross border trade performance contributed to GMV growth as currencies strengthened against the U.S. dollar. The company continued to benefit from growing adoption of its suite of mobile applications as downloads surpassed 50 million globally since the launch of mobile in the third quarter of 2008. eBay expects to generate almost $5 billion in mobile GMV in 2011, more than double mobile GMV in 2010.
The company's GSI business, which was acquired in the second quarter of 2011, contributed $202.6 million in revenue for the third quarter. GSI generated $608 million in global ecommerce (GeC) merchandise sales during the quarter.
Third Quarter 2011 Financial Highlights (presented in millions,
except per share data and percentages)
|
|
Third Quarter |
|
|
|||||||||
|
|
2011 |
|
2010 |
Change |
||||||||
|
GAAP |
|
|
|
|
|
|
||||||
|
Net revenue |
$ |
2,966 |
$ |
2,249 |
$ |
717 |
32 |
% |
||||
|
Net income |
$ |
491 |
$ |
432 |
$ |
59 |
14 |
% |
||||
|
Earnings per diluted share |
$ |
0.37 |
$ |
0.33 |
$ |
0.04 |
12 |
% |
||||
|
Non-GAAP |
|
|
|
|
|
|
||||||
|
Net income |
$ |
628 |
$ |
531 |
$ |
97 |
18 |
% |
||||
|
Earnings per diluted share |
$ |
0.48 |
$ |
0.40 |
$ |
0.08 |
20 |
% |
||||
|
Business Units |
|
|
|
|
|
|
||||||
|
Payments |
|
|
|
|
|
|
||||||
|
Net revenue |
$ |
1,107 |
$ |
838 |
$ |
269 |
32 |
% |
||||
|
Net total payment volume |
$ |
29,282 |
$ |
22,365 |
$ |
6,917 |
31 |
% |
||||
|
Merchant Services |
$ |
19,314 |
$ |
14,161 |
$ |
5,153 |
36 |
% |
||||
|
On eBay |
$ |
9,968 |
$ |
8,204 |
$ |
1,764 |
22 |
% |
||||
|
Marketplaces |
|
|
|
|
|
|
||||||
|
Net revenue |
$ |
1,653 |
$ |
1,411 |
$ |
242 |
17 |
% |
||||
|
Gross merchandise volume (excl. vehicles) |
$ |
14,666 |
$ |
12,591 |
$ |
2,075 |
16 |
% |
||||
|
U.S. |
$ |
5,588 |
$ |
4,900 |
$ |
688 |
14 |
% |
||||
|
International |
$ |
9,078 |
$ |
7,691 |
$ |
1,387 |
18 |
% |
||||
