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Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Apr 17 2013 16:17:44

eBay Releases First Quarter 2013 Earnings

By: Ina Steiner
Sponsored Link
eBay's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2013 earnings, you can view the full release with tables on the eBay investor relations website.

eBay Inc. Reports Strong First Quarter 2013 Results

Double-digit growth in revenue and net income, with customer growth accelerating at Marketplaces and PayPal

Total Company Enabled Commerce Volume Up 19% Year over Year

SAN JOSE, Calif.-Global commerce platform and payments leader eBay Inc. (Nasdaq: EBAY) today reported that revenue for the first quarter ended March 31, 2013, increased 14% to $3.7 billion, compared to the same period of 2012. The company reported first quarter net income on a GAAP basis of $677 million, or $0.51 per diluted share, and non-GAAP net income of $829 million, or $0.63 per diluted share. The year-over-year increase in first quarter GAAP and non-GAAP earnings per diluted share was driven primarily by strong top-line growth.

Downloads of eBay Inc.'s suite of mobile apps expanded the company's overall commerce footprint, surpassing 162 million since launch in the third quarter of 2008. eBay Inc. gained approximately 2.8 million new customers in the period through mobile, driving double-digit growth in active users at both PayPal and Marketplaces. Total company "enabled commerce volume" (ECV) grew 19% totaling $49 billion (ECV equals Marketplaces GMV, PayPal Merchant Services TPV, and GSI GeC Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me Later).

"We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than ecommerce," said John Donahoe, eBay Inc. President and CEO. "Technology is creating a commerce revolution, and we are in the forefront with strong mobile leadership and a focus on helping retailers and brands engage consumers anytime, anywhere."

The company's PayPal business delivered strong first quarter performance with revenue increasing 18% to $1.5 billion. PayPal gained 5 million active registered accounts in the period and ended the quarter with 128 million, a 16% increase. PayPal's net total payment volume (TPV) grew 21% to $41 billion, driven by consumer and merchant use of PayPal both on and off eBay. PayPal continues to invest in growing its addressable market, product development, customer engagement and consumer awareness. The company's mobile payment solution for small business, PayPal Here, became available for sale at more than 2,700 SoftBank locations across Japan and the iPad version of the product was launched in the U.S. PayPal also announced the chip and PIN version of PayPal Here in the U.K. which it plans to roll out this summer. PayPal's offline initiatives are now live in almost 20,000 major retail locations in the U.S.

The company's Marketplaces business also delivered strong first quarter performance with revenue increasing 13% to $2.0 billion. Marketplaces gained 3.9 million active users in the period and ended the quarter with 116 million, a 13% increase. Gross merchandise volume (GMV), excluding vehicles, increased 13% to $18 billion, reflecting the continued improvements to eBay's core technology designed to make it easier and faster for consumers to shop and buy. Sold items increased 12%. Fixed price GMV grew 17% globally and represented 68% of total GMV. U.S. GMV, excluding vehicles, increased 16% as mobile engagement and momentum in fashion and tickets were key drivers of growth. International GMV, excluding vehicles, increased 11% to $11 billion. Marketplaces continues to invest in innovation and expanding its addressable market both locally and globally.

The company's GSI Commerce business contributed $236 million in revenue for the first quarter. Its enterprise commerce platform generated $807 million in global ecommerce (GeC) Merchandise Sales, while its marketing services fee business produced $50 million of revenue. GSI enabled its clients to grow faster than the ecommerce market as measured by the 16% same stores sales growth, but revenue was pressured by a reduction in take rate. The company expects GSI's integrated omnichannel product portfolio, including complementary eBay Inc. assets, to be increasingly adopted by merchants seeking opportunities to grow their businesses while seamlessly meeting the needs of their consumers.

Other Selected Financial Results
Operating margin — GAAP operating margin increased to 21.3% for the first quarter of 2013, compared to 19.9% for the same period last year. Non-GAAP operating margin increased to 27.4% in the first quarter, compared to 26.9% for the same period last year.
    Taxes — The GAAP effective tax rate for the first quarter of 2013 was 16%, compared to 17% for the first quarter of 2012. For the first quarter of 2013 and 2012, the non-GAAP effective tax rate was 20% for both periods.
    Cash flow — The company generated $937 million of operating cash flow and $638 million of free cash flow during the first quarter of 2013.
    Stock repurchase program — The company repurchased approximately $476 million of its common stock in the first quarter of 2013.
    Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $11.5 billion at both March 31, 2013 and December 31, 2012.

Business Outlook

Second quarter 2013 — eBay expects net revenues in the range of $3,800 - $3,900 million with GAAP earnings per diluted share in the range of $0.46 - $0.48 and non-GAAP earnings per diluted share in the range of $0.61 - $0.63.
    Full year 2013 — eBay expects net revenues in the range of $16,000- $16,500 million with GAAP earnings per diluted share in the range of $2.23 - $2.29 and non-GAAP earnings per diluted share in the range of $2.70 - $2.75.

Quarterly Conference Call
eBay will host a conference call to discuss first quarter 2013 results at 2:00 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at http://investor.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.



Comments (30) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Al G
       
Wed Apr 17 18:51:22 2013
As my grandmother used to say

"NU?" so what is new.

Anyone participating in the eBay enterprise has contributed to this result.

For those that are tethered to eBay - this is a good thing, I guess.

Peace
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Al G
       
Wed Apr 17 19:17:44 2013
As an addition to the above post
Yiddish נו nu expresses a "well? what's new."

Quite related to the French shrug (where Yiddish originated in the 1500's).
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Ming the Merciless
       
Wed Apr 17 20:58:15 2013
They lie.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Sandymenu
       
Wed Apr 17 21:01:06 2013
Daddy Ming it correct!

(at least that's what my fortune cookie reads)
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Rexford
       
Wed Apr 17 21:32:54 2013
I see they brought out the spin machine for the quarterly earnings report again.  I keep waiting for Donahoe to pop out of a giant six layer cake.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Digmen1 This user has validated their user name.
       Web Site
Wed Apr 17 22:31:47 2013
So another big increase in merchandise sales and GMV and you all think it is a lie?

I can believe them fudging the figures sometimes, but not every quarter. They have been going up for the last few years.

Lets face it they are doing better than we all thought!

I just found out about their re-reimbursement method system.

That means they can just take funds out of my pay pal account!

No Way
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Anonymous Annie
       
Wed Apr 17 22:37:56 2013
-- ''Lets face it they are doing better than we all thought!''

At whose expense?
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Patricia This user has validated their user name.
       
Wed Apr 17 22:38:28 2013
Ming said it all...
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: blaumann2 This user has validated their user name.
       
Thu Apr 18 00:04:29 2013
First off, since a huge percentage of Yiddish words are German, it is VERY doubtful it originated in France.
All sorts of blather about mobile and customers, NOT ONE WORD ABOUT SELLERS!
Nothing about how many sellers have become inactive or just gone.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Philip Cohen
       Web Site
Thu Apr 18 00:52:30 2013
I have no idea where eBay is getting its increased marketplace revenue from; certainly, it is not from the random selection of merchants that I follow.

As a matter of interest I choose to follow a bunch of randomly selected professional merchants (all referred to in my Shill Bidding Case Study) who sell at auction from a nominal start. Of the ~40 merchants that I follow from time to time, probably 35 of them are demonstrably bidding on and consequentially buying much of their own stuff.

Of the few smaller merchants that I watch that were shill bidding but are now selling BIN (probably due to being slapped by eBay for shill bidding) all have the usual “oceans of red” in their completed listings.

Of the maybe five honest remaining merchants only a few have a STR that could be described as “satisfactory” in the circumstances of today’s eBay.

So, by my reckoning, eBay must be getting a great deal of its auction FVF revenue from the faux “sales” of the great many professional merchants (such as “she who cannot be named”) who appear to be now (and possibly always have been) bidding on their own nominal-start auctions, and are now buying even more of their stuff themselves.

Obviously, eBay must be utterly desperate in the short term for revenue to have again “reduced” (LOL) the fees for such merchants (assuming the “reduction” does apply to any such shill bidding preferred merchants), for, if they force these very many unscrupulous merchants—who appear to be contributing possibly a least a large minority, if not a majority, of eBay’s auction FVF revenue—to the wall, then surely the eBay “house of cards” itself will also collapse …

I’ve mentioned eBay’s major preferred merchant, “eforcity” (“No Touchy Johnny Sheng”), previously; look at his completed listings via the AU site and see if you can find where eBay’s marketplace revenues are coming from

http://www.ebay.com.au/csc/eforcity/m.html?_ipg=200&LH_Comp
lete=1&_sop=13


“with customer growth accelerating at Marketplaces”—LOL … If that is true, it will be most likely the result of the opening of new shill bidding accounts …

eBay / PayPal / Donahoe: Dead Men Walking ... http://bit.ly/11F2eas
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Massachusets Howler This user has validated their user name.
       
Thu Apr 18 01:17:43 2013
Are they really doing better than we thought?

''Revenue decreased 6.14% from 3.99 billion in the previous quarter. EPS decreased 10% from $0.70 in the previous quarter''.

That is what REALLY happened Annie so do not frown!

They guided LOWER too, the mastercard fee is coming on as well as the 2 traditionally slowest quarters of sales. The Euro conversion is hurting them and the after hours numbers in the market are down 2% after a .91% drop during the day.

Then, you have ebay making a HUGE CLAIM less than a month ago for 2015 with these ''lower expectations'' announced a month later with no adjustment on the IMPOSSIBLE straw-grabbing 2015 ebay ''projections'' to keep the ebay BILGE PUMPS (aka-Phil) pumping.

Things are not that bad Annie!

And who do I know who has a Discover card? NOT 1 PERSON I KNOW, so who cares.

Not posting as much lately but will post occasionally.

EXPECT MANY articles by the Motley Fool to buoy this company through the week- his multiple articles will start tomorrow as that is his set pattern.

Yahoo search- ebay stock price- go to the one on your search page at the top with the little chart- look for multiple positive spin articles by motley fool tomorrow, just like clockwork.

Combine this with strong indicators that there may be a 10-15% correction in the market in the next 30-60 days and we could see some interesting things happen here. Even the high-riding and safe S & P 500 is in a ''head and shoulders'' pattern now. This uncertainty will not make for a strong 2nd quarter for ebay.  

Peace and respect to all,
Mass Howler
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Ed Gadfly
       
Thu Apr 18 06:30:39 2013
Glad to hear that eBay is making money.

Now the people at the top will be benevolent and award the eBay customers with improvements and cost reductions. The wealth will trickle down.

Things look good for you!

Imagine how awful things would be if there was not enough money to hire the brightest and the best ''associates.''  
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: FREDDY This user has validated their user name.
       
Thu Apr 18 10:33:16 2013
Was not B Madoff doing well each quarter, year after year????
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Mr. Me This user has validated their user name.
       
Thu Apr 18 11:19:50 2013
If you are an ebarf / preypal exec or shareholder, good news.......If you are a seller or buyer not so good news as the profit is sucking you dry!
ebay produces nothing and is only a parasite, sucking up their 13% fees
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: nothingnew This user has validated their user name.
       Web Site
Thu Apr 18 11:20:28 2013
Oh yea! Their automatic reimbersment policy will chase many small sellers away that can't afford to be a rental agency, and that can't afford to get funds YANKED out from under them just because a buyer changes they minds or scratches their knee caps? I know soon as ebay forces that on ANY of my id's I'll move away and NEVER look back at ebay again.
.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
This user has validated their user name. by: Ric
       
Thu Apr 18 11:56:39 2013
The outrageous compensation packages bestowed on John Donahoe and the rest of his hand picked C-Level management team will continue to weigh on eBay profits.

The recently announced fee increase is not going to be sufficient to cover the massive awards without hitting profits.

Management has grossly miscalculated - again. The fee increase, especially the elimination of caps on higher priced items is not going to result in passed along costs and even higher selling prices as intended. Instead, the increase will compel sellers to seek out more reasonable priced marketplaces to protect their profits.

eBay will begin to feel the effects of this latest attempt to fleece sellers over the next two quarters. When sellers see how the fee increases are going to hit their bottom line, many will begin seeking out other more reasonably priced marketplaces in greater numbers than before.

John Donahoe wanted to shed the garage sale image long associated with eBay. The fee increase on higher priced goods is going to set that effort back several steps. As sellers of higher priced merchandise see how their bottom line is being decimated, the low priced garage sale image will once again plague the marketplace.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: gutspiller This user has validated their user name.
       
Thu Apr 18 12:21:21 2013
Increased grow? Increased profit? Where did Ebay make this. 1 year ago I was sellinge a few hundred items each month. Currently sales are absolutely 0.

Temporarily closed my Ebay shop some time ago: no traffic, no sales. Then Ebay force me to redo my hundres of listings. So just temporalily closed the shop and started redoing my listings.

Reopened the shop a few days later: trafic = 0, haven't made a sale in days. Listed over 200 items in just a few days. And days later 99% is sitting there without an views or sales.

Seems I'll have to close my shop again. DEFINATELY...

That's a few 1000's less in fees for Ebay.

Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: JoyfulA This user has validated their user name.
       
Thu Apr 18 12:54:32 2013
Mass Howler, I have a Discover card, but what's that got to do with anything?
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Ed This user has validated their user name.
       
Thu Apr 18 14:00:41 2013
What percentage of that profit came from over charges from Free shipping that was forced on the sellers. When you collect fees for shipping from Free shipping when the buyers pay for zone 8 shipping when they live in zone 3 or 4 will make a ton of profits. The only Free was for the profit on ebays bottom line. Bot the Seller and the Buyer ends up paying extra as ebay collects the extra profits.
Perminate Link for eBay Releases First Quarter 2013 Earnings   eBay Releases First Quarter 2013 Earnings
by: Puamelia This user has validated their user name.
       
Thu Apr 18 15:16:17 2013
@gutspiller, my sales tanked last year.
@ed, good point.
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