eBay Inc., a global commerce platform and payments company (Nasdaq:
EBAY), today reported that revenue for the second quarter ended June 30,
2012, increased 23% to $3.4 billion, compared to the same period of 2011.
The company reported second quarter net income on a non-GAAP basis of
$730 million, or $0.56 per diluted share, up 16% year over year
primarily due to strong top-line growth partially offset by increased
investment in the shopping experience and the impact of acquisitions.
GAAP net income of $692 million, or $0.53 per diluted share, reflected a
gain on the divestiture of a business in 2012 and increased
significantly year over year due to a loss from the divestiture of
certain GSI businesses and GSI transaction-related expenses in the
second quarter of 2011.
"We delivered a great second quarter, driven by eBay Marketplaces' best
performance in years, strong growth at PayPal and strong
same-store-sales growth for GSI's large retail customers," said John
Donahoe, eBay president and CEO. "Our entire company is strong, but
we're particularly pleased with eBay Marketplaces, which delivered its
strongest organic growth in gross merchandise volume, excluding
vehicles, since 2006. And mobile continues to be a game changer. We now
expect eBay and PayPal mobile to each transact $10 billion in volume in
2012 -- that's more than double 2011, a staggering surge in mobile
shopping and payments on devices that did not exist just a few years
ago. Retail is at an inflection point, and we are helping to reshape how
people around the world shop and pay."
PayPal delivered a strong second quarter performance. PayPal ended the
quarter with 113.2 million active registered accounts, a 13% increase
over the second quarter of 2011. PayPal revenue increased 26% year over
year, driven primarily by increased penetration on eBay as well as
continued merchant and consumer adoption and strong growth in Bill Me
Later. PayPal's net total payment volume (TPV) grew 20% year over year
to $34.5 billion. PayPal continues to focus on innovation, delivering on
its vision of anytime, anywhere payments and growing its business in
mobile and point of sale. This quarter, the company announced a joint
venture with SoftBank in Japan, extending its global expansion strategy
for small business payment solution PayPal Here. Sixteen large
brand-name U.S. retailers have announced their intent to work with
PayPal on point of sale initiatives. The PayPal point of sale payment
solution, which gives shoppers the opportunity to pay using just their
mobile phone number or PayPal payment card and PIN, was rolled out in
Abercrombie & Fitch and Jos. A. Bank stores in the U.S. beginning in the
quarter.
eBay's Marketplaces business delivered its strongest organic growth rate
in gross merchandise volume (GMV), excluding vehicles, since 2006, at
15% on a year-over-year basis, excluding the effects of foreign currency
(FX). Also excluding FX, international GMV, excluding vehicles,
increased 16% and fixed price GMV, excluding vehicles, increased 20%
year over year.
Marketplaces GMV, excluding vehicles, increased 10% year over year to
$16 billion in the second quarter of 2012. Marketplaces revenue
increased 9% year over year, driven by strong growth across all regions.
Sold items increased 20% compared to the second quarter of 2011, a 2.5
percentage point acceleration, reflecting a better customer experience
and improved selection. U.S. GMV, excluding vehicles, in the second
quarter increased 14% year over year, driven by growth in active users,
mobile engagement and strong performance in key verticals, including
fashion, tickets and parts & accessories. International GMV, excluding
vehicles, increased 8% year over year to $10 billion, driven by strong
growth in Europe and Asia-Pacific. Fixed price GMV, which represented
65% of total GMV in the second quarter, grew 13% globally year over
year. Downloads of eBay's suite of mobile apps have surpassed 90 million
globally since the launch of mobile in the third quarter of 2008.
The company's GSI business, which was acquired in the second quarter of
2011, contributed $221 million in revenue for the second quarter. GSI
generated $674 million in global ecommerce (GeC) merchandise sales
during the second quarter. Same store sales grew 21% year over year,
reflecting strong ecommerce sales from retail clients.
