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Wed Apr 22 2009 16:37:54

eBay Marketplaces Show 18% YoY Decline

By: Ina Steiner

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eBay reported financial results for the first quarter ended March 31, 2009. It posted first quarter revenue of $2.02 billion, a $171.6 million year-over-year decrease it said was caused primarily by the impact of the stronger dollar and the decline of the core Marketplaces business in difficult macroeconomic conditions.

The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, recorded $1.22 billion in revenue, equating to an 18% year-over-year decline. The revenue drop was attributable to the impact of the strengthening dollar and the decline of the core business in difficult macroeconomic conditions.

Approximately 54% of Marketplaces revenue came from markets outside of the U.S. GMV (excluding vehicles) was $10.80 billion for the quarter, a decrease of 16%, compared to the first quarter of 2008.

Online classifieds revenue increased 23% year-over-year.

eBay Marketplaces continues to focus on stabilizing its core business by improving trust, value and selection for customers while looking for ways to drive growth through geographic, format and category expansion.

PayPal, Classifieds and Skype performed well, delivering year-over-year revenue growth. Text and graphical advertising revenue was flat as compared to the prior-year quarter. The company recorded net income on a GAAP basis of $357.1 million or $0.28 per diluted share, and non-GAAP net income of $499.9 million or $0.39 per diluted share.

"We delivered solid results in the first quarter and moved aggressively to strengthen our portfolio for longer-term growth," said eBay Inc. President and CEO John Donahoe. "With a macroeconomic environment that remains challenging, we are focused on operating discipline and strong execution of our three-year growth priorities in our core ecommerce and online payments businesses."

Source: eBay Press Release




Comments (62) | Permalink

Readers Comments

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: ebay=pennystock

Wed Apr 22 17:02:55 2009

Amazon is going to obliterate Ebay in tomorrow report.

DonnaHole has no one to blame but himself and his flunkies.

Maybe the stockholders will find someone with a brain and fire the moron.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: just maybe

Wed Apr 22 17:07:03 2009

Maybe just maybe Donahoe is right and all the noisy is from sellers who have finally found out that they aren't wanted.

If he ignores them they WILL go away.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Henrietta

Wed Apr 22 17:27:31 2009

@just maybe

Well you see, that is the problem. We did go away and we took our dollars with us.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Amazoning

Wed Apr 22 17:31:58 2009

I had to take a break from all of the eBay silliness and focused all of my efforts on Amazon sales.

I'm very happy I did.

Though I'm still stuck with stuff that can't be sold on Amazon (collectibles), I'm very happy with the sales I make on Amazon with commercial product.

eBay sales are so slow anymore that they're almost an inconvenience when they do come in.

I used to be quite angry with Donahoe.  Now I realize that he really did me (and Amazon) a favor.
Amazon has been keeping me very busy.  And if not for the eBay changes of 2008, I never would have considered putting one item on Amazon.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Amazoning

Wed Apr 22 17:33:45 2009

For my line of products, Amazon is my ''best match''.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Henrietta

Wed Apr 22 17:59:26 2009

I am quite amazed that they would trot out the old difficult macroeconomic conditions excuse again. Amazon sort of rubbished that for Q4-08 and will probably do it again Q1-09.

Makes you wonder about the difficult macroeconomic conditions when new collectible sales venue Bonanzle.com went to 50K users in the seven months since exiting beta, (it took eBay about a year and a half to hit 40K in the beginning) and Bonanzle recently announced that it had achieved profitability in the same time frame.

Maybe they meant to say MICROeconomic? Only applicable to eBay? Everyone else is OK Jack?

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Tom

Wed Apr 22 18:15:40 2009

One has to wonder what is wrong with the eBay Board Of Directors for leaving this ''egotistical idiot'' at the helm of the ship?

How much longer will the Board listen to Donahoe's baloney until they realize they are being conned? eBay will keep losing huge amounts of revenue every quarter. PayPal and Classifieds might be winners but they will never be able to carry eBay.

The Board should have hired a SELLER as the CEO not a liquidater. What Donahoe is doing is near criminal.

It is apparent that eBay needs the noisy SELLERS much more than it needs Donahoe.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Harriet

Wed Apr 22 18:43:51 2009

Maybe the Board of Directors actually does want to liquidate eBay and take their money and run.

I can't think of any other reason why they are waiting around for this miracle to happen when 3 years is up. This past year is not much of a prognosticator of coming events.

Why on earth would a corporation want to have 3 years of agony to have a resurrection at the end of it.

Most corporations have high anxiety when they have one quarter which is poor.

But, no, eBay is telling the world that they have a deliberate 3 years of agony planned, and it will be wonderful at the end.

Right!!??

Wanna buy some snake oil??

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Daisy

Wed Apr 22 18:46:58 2009

Any business that is turning away good sellers during the worst economic times since the great depression deserves to have a bad earnings report. What is Donahoe thinking????

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: eBay Will Be Fine

Wed Apr 22 18:55:07 2009

People here seem to somehow miss that eBay added nearly half a billion dollars of net profit in the bank.

Investors and analysts don't seem too negative with the results...stock appears to be going up after-hours :-)

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: MsFish213

Wed Apr 22 19:07:16 2009

Half a billion from Ebay Corp, not Marketplace...so Paypal and Skype are making money, NOT the marketplace.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

This user has validated their user name. by: Ming the Merciless

Wed Apr 22 19:27:32 2009

Yes, ebay stock is up slightly in after hours trading.

Only Wall Street, who we all know has been soooo on target with their ebay ''analyses'' in the last couple of years, would reward these dismal results.

-- first quarter revenue declined 8% to $2.02 billion compared to a year ago

-- net income in Q1 fell 22% to $357 million from a year ago and earnings per share declined 7% to 39 cents from 42 cents a year ago

Courtesy of Ina:

-- a decrease of 18% in marketplace revenues

-- a decline in unique marketplace audience of 5.78%

-- a decline in marketplace page views by 25.14%

-- continue to support The Ho's lame ''macroeconomic'' excuses when competitors are simply outperforming ebay because they have smarter management

Moreover, ebay's net profits likely end up in an offshore bank so they won't have to pay their fair share of taxes.

Hang on tight, the Toolbox Troll Brigade super spin has already begun!

Ho and No gotta go!

Death to ebay corp. in 2009.
NEG MEG WHITMAN in 2010.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: eBay Will Be Fine

Wed Apr 22 19:51:25 2009

Oh Ming, you worry too much...eBay will be fine! I look forward to years of civil discussions with you, and your no-spin **cough** posts. Hee hee :-)

Long live eBay!

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

This user has validated their user name. by: Ming the Merciless

Wed Apr 22 20:00:20 2009

Facts are facts, Ebay Will Be Fine. They speak for themselves.

Spin is trying to twist these hard facts into something positive.

There IS nothing positive in anything ebay reported today. Nothing.

Just because the report wasn't as bad as some erstwhile experts thought it might be isn't positive. It just isn't as negative as some thought.

Let's have a modicum of objectivity here.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

This user has validated their user name. by: Ming the Merciless

Wed Apr 22 20:02:40 2009

My previous referred to ebay's marketplace results only.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Larry Flint

Wed Apr 22 20:49:17 2009

Many are missing the big picture...eBay yet again blame things on the $ ...well what about the home market you know ebay.com ? where payment is in $ ...this should be going thro the roof with the mighty $. Amazon sales are not bothered by the $ & are growing very fast as ebay drops?

Usual upside down PR spin from eBay watch the stock drop after the profit takers drop stock

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Patricia

Wed Apr 22 20:52:41 2009

Wow! Ebay didn't decline too much from first quarter last year LOL  Here's the big BUT....BUT they neglect to say that last year was actually the start of Ebay's decline.  They were far from being on top of their game them.  So, they've slipped even further....how much of this decline is their board willing to take.  The decline isn't the economy or the dollar...its John Donahoe deliberately destroying core and core reacting with loss of thousands of good honest sellers!

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Kellermann

Thu Apr 23 03:58:08 2009

John Donahoe is similar to a nuetered pit bull running loose off its leash in the street.  Its owners will claim its harmless (BOD), while secretly in trepid fear of its next inbred violent attack (on sellers).

The next 'experience' will make all sellers look exactly the same as the other, like drinking flat 7UP seems so appealing.  Dohahoe is a flake, and the BOD is gutless for letting this wanna be nuetered MBA pit bull off its leash.

The 'macroeconomic' ebay bubble will burst, and Donahoe will probably end up offing himself after destroying a once flourishing company.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: cheesy

Thu Apr 23 09:32:24 2009

eBay Marketplaces continues to focus on stabilizing its core business by improving trust, value and selection for customers while looking for ways to drive growth through geographic, format and category expansion

Gotta love that quote, lol.  Anyone actually actively BUYING on the site could tell you that 'selection' has certainly NOT be on the rise since these changes.  It appears the numbers are where they are due to repeated product via the diamonds, this is not truly 'selection', it's fluffing the numbers for the wall street suckers who take corporate press releases at their word.

And if the decline is purely due to outside forces, and not at all to the decisions of those in charge - well, all that says is clearly those in charge are ineffective at their jobs.

eBay Marketplaces Show 18% YoY Decline   eBay Marketplaces Show 18% YoY Decline

by: Steve

Thu Apr 23 09:53:12 2009

Tom says "One has to wonder what is wrong with the eBay Board Of Directors for leaving this ''egotistical idiot'' at the helm of the ship?"

Tom you are RIGHT ON.  I have been saying this for months.  This guy is the most arrogant CEO to ever run a company into the ground.  This Board is lame for not taking action.  He has excuse after excuse.

Ebay is obsessed with data for making decisions when they need to START listening to their sellers.   JD has no vision for this company.  He first tried to copy Amazon.com.  That did not work so now he has an Overstock.com model in mind.  When that doesn't work--WHAT NEXT?

Hey JD, you don't tick off your customers (i.e. the sellers).  Sellers WERE your biggest buyers.  You can't treat them like 2nd class citizens and expect them to be loyal.  You have made them hate you and the company.

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