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Wed Apr 27 2011 16:19:56

eBay Announces First Quarter 2011 Earnings, Revenue up 16%

By: Ina Steiner

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eBay's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2011, you can view the full release with tables on eBay's investor website.

Stay tuned for our coverage of eBay's annual shareholders meeting tomorrow morning right here on the AuctionBytes Blog.

eBay Inc. Reports Strong First Quarter 2011 Results
SAN JOSE, Calif.-Global ecommerce and online payments leader eBay Inc. (Nasdaq:EBAY) today reported that revenue for the first quarter ended March 31, 2011 increased 16% to $2.5 billion, compared to the same period of 2010. The company recorded first quarter net income on a GAAP basis of $475.9 million, or $0.36 per diluted share, and non-GAAP net income of $619.0 million, or $0.47 per diluted share, representing a 12% increase for each compared to the same period of 2010. The first quarter increase in non-GAAP earnings per diluted share was due primarily to solid top line growth and a lower effective tax rate.

"In the first quarter, PayPal continued to drive strong growth globally, eBay sharply accelerated growth in the U.S. and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments. The year is off to a strong start," said eBay Inc. President and CEO John Donahoe.

The company's PayPal business delivered strong first quarter performance, expanding its leadership position in global payments. PayPal grew active registered accounts 16% year over year, ending the quarter with 97.7 million and adding approximately one million active accounts per month for the sixth consecutive quarter. PayPal's net total payment volume grew 28% to $27.4 billion in the first quarter of 2011 compared to the same period of last year, driven primarily by strong 38% year-over-year growth in its Merchant Services business across global markets, increased merchant adoption and greater usage by customers. PayPal continued to deliver solid growth in mobile payments and digital goods, with increased usage of Mobile Express Checkout, PayPal Send Money apps and the newly-launched PayPal for Digital Goods service.

The company's Marketplaces business continued to deliver improved performance during the first quarter of 2011. Gross merchandise volume excluding vehicles (GMV), increased by 8% year over year to $14.5 billion, reflecting progress against underlying customer metrics focused on trust, value and selection. GMV in the U.S. increased 10% year over year, the second consecutive quarter of acceleration. International GMV increased 8% year over year, driven by continued strength in Europe, partially offset by weakness in Korea. The Marketplaces business continued to drive technology-led innovation in key areas such as mobile, where the company is on track to double eBay's mobile GMV to $4 billion in 2011. Worldwide, active users increased 5% year over year to 95.9 million, with growth in North America, the U.K., Germany and Australia.

Other Selected Financial Results
    * Operating margin — GAAP operating margin remained flat at 22.2% both for the first quarter of 2011 and for the same period last year. Non-GAAP operating margin decreased to 29.4% for the quarter, compared to 30.6% for the same period last year. The decrease in non-GAAP operating margin was due primarily to business mix with stronger growth in our lower margin businesses, primarily PayPal, and the inclusion of our recently completed acquisitions of Brands4Friends, Milo.com and Critical Path Software.
    * Taxes — The GAAP effective tax rate for the first quarter of 2011 was 16%, compared to 20% for the first quarter of 2010. For the first quarter of 2011, the non-GAAP effective tax rate was 19%, compared to 22% for the first quarter of 2010.
    * Cash flow — The company generated $699.6 million of operating cash flow and $551.0 million of free cash flow during the first quarter.
    * Stock repurchase program — The company repurchased approximately $356.2 million of its common stock in the first quarter.
    * Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $8.1 billion at March 31, 2011, compared to $7.8 billion at December 31, 2010.

Business Outlook
    * Second quarter 2011 — eBay expects net revenues in the range of $2.550 to $2.650 billion with GAAP earnings per diluted share in the range of $0.36 to $0.37 and non-GAAP earnings per diluted share in the range of $0.45 to $0.46.
    * Full year 2011 — eBay now expects net revenues in the range of $10.600 to $10.900 billion with GAAP earnings per diluted share in the range of $1.53 to $1.58 and non-GAAP earnings per diluted share in the range of $1.93 to $1.97.

Quarterly Conference Call
eBay will host a conference call to discuss first quarter 2011 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 web site at http://investor.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

About eBay Inc.
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) connects millions of buyers and sellers globally on a daily basis through eBay, the world's largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive online payments. We also reach millions through specialized marketplaces such as StubHub, the world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.




Comments (50) | Permalink

Readers Comments

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: anyone out there

Wed Apr 27 16:47:01 2011

To all you naysayers " Take That "

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: Rookies

Wed Apr 27 16:54:48 2011

Guess those earnings quieted everyone. LOL! Must be jumping off bridges.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: coconut

Wed Apr 27 17:10:01 2011

Aw the naysayers are just trying to regroup.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: My Own Website Not Quite Paying My Bills Yet

Wed Apr 27 17:15:14 2011


EBay will always make about $2 billions per quarter. Do you really think we're sitting here waiting for them to lose money?? Paypal is doing well (I wonder if the forced Paypal has anything to do with that) and the EBay marketplace in Europe is doing well. Other than that, Amazon continues  crush it!!!

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

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

Wed Apr 27 17:20:36 2011

Hi Lieworld and Griff-

It was Scot Wingo who said growth would be only 4% so go hammer him.

Nowhere have I seen any figures yet for the ebay.com site -- that's what most of us are concerned about here.

It's still PayPal, PayPal, mobile, mobile, criminals welcome here, etc.

As for jumping off a bridge, if I did that, I couldn't spend nearly as many as days as I plan to exposing the criminal conduct of your employer.

Ebafia: billions made, not one red cent in dividends paid.

This entire corporation with its stock buy backs has become nothing more than than gigantic Wall Street supported cesspool for enriching its top executives with stock options.

Got yours yet, Griff?

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: Luxferro This user has validated their user name.

Wed Apr 27 17:22:10 2011

Amazon continues to "crush it"? Have you seen their profit decrease since last year?

As a business, I would rather have eBay's more moderate revenue rise and their healthy 12% profit increase, instead of Amazon's huge profit decrease!

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

This user has validated their user name. by: Anonymous Annie

Wed Apr 27 17:30:12 2011

Rookies writes: ''Guess those earnings quieted everyone. LOL! Must be jumping off bridges.''

Apparently the children provocateurs are becoming impatient. This makes sense when one considers that these unemployed cranks have nothing else to do besides troll the eBay forums and blogs, pretending to be intelligent warriors... all from the safety of their mother's basement.

It must be dreadfully boring to have to sit there and WAIT for the desired response. While everyone else is at work, they're clicking the refresh button over and over again.

These types of comments are little more than a plea for attention and a desire to be entertained. This is their primary source of human interaction. Little wonder that trolls like that are social misfits and are verbally impotent unless hiding behind the safety and anonymity of their keyboard.

Not an original or complex thought in their head. Just a repetitive series of one-liners, threats, insults and taunts... all designed to provoke an angry response.

Completely irrelevant. Safely ignored.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: My Own Website Not Quite Paying My Bills Yet

Wed Apr 27 17:32:32 2011

''Have you seen their profit decrease since last year?''

You mean something like this in Ebay's operating margin:

GAAP operating margin remained flat at 22.2% both for the first quarter of 2011 and for the same period last year. Non-GAAP operating margin decreased to 29.4% for the quarter, compared to 30.6% for the same period last year.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: Digby

Wed Apr 27 17:37:48 2011

Whcih is the best bridge.
The results seem better than we all thought.

Perhaps JD turnaroud has finished ?
I'd still like to see quarterly sales of ebay marketplace separated out.

Lets hope all those big mega sellers stay there, as the small sellers are all leaving or being removed.

And it would be great if they started paying shareholder dividends.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: My Own Website Not Quite Paying My Bills Yet

Wed Apr 27 17:38:27 2011


For those of you who want to know the meaning of "crush it", here's you answer:

http://graphics.thomsonreuters.com/11/04/US_AMZNEBAY041
1_SC.gif

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: Luxferro This user has validated their user name.

Wed Apr 27 17:53:21 2011

If you use Amazon as the benchmark for revenue (again leaving the most important metric aside; profit), then all retailers are "failing". Can you say "Kindle"? :-)

Don't be so quick in cheerleading Amazon; they are not the small seller lover that you think. And watch the operating costs, margins and profit when their revenue growth starts slowing down (and it will).

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: My Own Website Not Quite Paying My Bills Yet

Wed Apr 27 18:10:32 2011


Don't forget, Amazon lost money for years. Their business philosophy is different than Ebay's. Amazon's is to build loyal customers for years to come. Why do think their sales growth has ''crushed it'' since 2007? Do you think it because people hate using Amazon? Ebay is all about the shareholders.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

This user has validated their user name. by: Philip Cohen
Web Site

Wed Apr 27 18:24:45 2011

"The company’s Marketplaces business continued to deliver improved performance during the first quarter of 2011. Gross merchandise volume excluding vehicles (GMV), increased by 8% year over year ..."

8%! Donahoe will be giving Wingo a good kicking; still, 8% is still trailing behind everybody else.

PayPal was good buy—in the short term.

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: HeHebayHaHa

Wed Apr 27 18:29:56 2011

@Rookies "Guess those earnings quieted everyone. LOL! Must be jumping off bridges"

Let them.
1.Release the money owed customers in frozen paypal accounts.
2.File an honest report
3.Then see who jumps

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

This user has validated their user name. by: Philip Cohen
Web Site

Wed Apr 27 18:32:05 2011

By the way, has anyone, except for eBay's senior managing executives, actually seen any of this play money that eBay claims to be printing and is furiously spending on questionable "purchases".

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: voodoo accounting

Wed Apr 27 19:07:34 2011

All there is to know is how easily they 'earn' their money.

http://tinyurl.com/68kh74c

http://preview.tinyurl
.com/68kh74c

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

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

Wed Apr 27 20:18:52 2011

Ebafia has BILLIONS stashed in tax free offshore accounts thanks to the mostly Republican congress begining during the Reagan administration.

Unlike many individual US taxpayers, ebafia has money to burn because they don't pay their fair share of US taxes.

And it's going to get worse.

The Corporatist Pawn US Supreme Court ruled 5-4 today that anyone seeking to file a class action lawsuit against a corproation must first go through arbitration.

You guessed it. The "impartial" arbitrators are located in San Jose.

Elections and Supreme Courts appointing a president have consequences, and this is another disastruous ruling for freedom and democracy.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

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

Wed Apr 27 20:40:37 2011

One of the inherent problems is objectively assessing ebafia is that many of us strongly suspect ebafia is far less than candid, truthful, or accurate with their financials.

Their stubborn refusal to report ebay.com marketplace financials indicates to me they probably have plenty to hide.

Even if they did release marketplace financials they would be suspect and untrustworthy because ebafia and the truth aren't acquainted.

I wonder how any ebay employee an sleep at night knowing their work for the slimiest corporation in e commerce.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: Sayonara eBay

Wed Apr 27 21:29:22 2011

They did say that the US marketplace GMV was 10% over last year.

Since last year, lst quarter had 6% growth YOY, it looks like it increased to 6.6 this year.  No wonder Donahoe didn't mention the exact percentage it rose.  It's puny.

eBay Announces First Quarter 2011 Earnings, Revenue up 16%   eBay Announces First Quarter 2011 Earnings, Revenue up 16%

by: MIng the Merciless

Wed Apr 27 21:47:57 2011

US Marketplace covers more than ebay.com. It covers stubhub.com, and stubhub has been doing a lot of advertising lately.

As "puny" as 6% is, the truth is probably a great deal less.

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