Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed July 16 2014 15:25:55

eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

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 second quarter 2014 earnings, you can view the full release with tables on eBay's investor relations website.

eBay Inc. Reports Second Quarter Results
Global commerce platform and payments leader eBay Inc. (NASDAQ: EBAY) today reported that revenue for the second quarter ended June 30, 2014 increased 13% to $4.4 billion, compared to the same period in 2013. GAAP earnings increased to $676 million or $0.53 per diluted share, and non-GAAP earnings increased to $868 million or $0.69 per diluted share driven by strong enabled commerce volume growth.

eBay Inc.'s commerce ecosystem continued to gain share, with total company enabled commerce volume (ECV) increasing 26% in the second quarter to $62 billion. Mobile ECV advanced 68% to $12 billion representing 20% of volume. Mobile downloads since inception were 260 million and attracted 6.6 million new customers in the quarter. Cross-border trade grew 26%, representing $13 billion, or 22%, of total company ECV.

"In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 percent," said eBay Inc. President and CEO John Donahoe. "PayPal generated another strong quarter while eBay's growth was hampered by its global password reset for all users. We continued our momentum in the four competitive commerce battlegrounds of mobile, local, global and data. We delivered new experiences for PayPal and eBay customers, extended PayPal and eBay into new markets, made it simple and easy for developers to integrate PayPal and offered new ways to help merchants grow."



PayPal net total payment volume (TPV) grew 29% with Merchant Services volume up 35% and on-eBay volume up 13%. Revenue grew to $1.9 billion. PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15%. Global on-eBay penetration increased to 79.8%. PayPal signed a deal with GE to extend its relationship offering a dual branded retail credit card and committed to purchase the loan portfolio in 2016 for an estimated $1 billion, based on the size of the portfolio at that time. This provides PayPal with flexibility to expand its credit offerings to consumers and merchants while improving its ability to manage transaction expense and reinvest back into the business to accelerate payment volume growth.

eBay Marketplaces gross merchandise volume (GMV) grew 12%, with the U.S. up 10% and International up 14%. Revenue grew to $2.2 billion. Marketplaces gained 3.8 million new buyers to end the quarter with 149 million active buyers, up 14%. Top rated sellers in the company's three largest markets grew their same-store sales 14% and offered free shipping on 56.4% of transactions across those markets. The selection of items available on Marketplaces grew to over 700 million listings, including both platform and non-platform offerings, reflecting the success of improved selling initiatives, particularly on mobile.

eBay Enterprise gross merchandise sales (GMS) grew 15%. Revenue grew to $267 million. Enterprise enabled its clients to grow same-store sales 14%.

Other Selected Financial and Operational Results
    Operating margin — GAAP operating margin decreased to 18.2% for the second quarter of 2014, compared to 19.3% for the same period last year. Non-GAAP operating margin decreased to 24.4% in the second quarter, compared to 26.3% for the same period last year.
    Taxes — The GAAP effective tax rate for the second quarter of 2014 was 15.8%, compared to 15.3% for the second quarter of 2013. For the second quarter of 2014 and 2013, the non-GAAP effective tax rate was 19.4% and 19.2%, respectively.
    Cash flow — The company generated $1.5 billion of operating cash flow and $1.2 billion of free cash flow during the second quarter of 2014.
    Stock repurchase programs — The company repurchased 32.4 million shares of its common stock for approximately $1.7 billion in the second quarter of 2014. As of June 30, 2014, the company's remaining share repurchase authorization was approximately $2.2 billion.
    Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $12.4 billion at June 30, 2014, down from $12.8 billion at December 31, 2013.

Business Outlook
    Third quarter 2014 — The company expects net revenues in the range of $4,300 - $4,400 million with GAAP earnings per diluted share in the range of $0.51 - $0.53 and non-GAAP earnings per diluted share in the range of $0.65 - $0.67.
    Full year 2014 — The company expects net revenues in the range of $18,000 - $18,300 million with GAAP earnings per diluted share in the range of $0.04 - $0.09 and non-GAAP earnings per diluted share in the range of $2.95 - $3.00.

Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss second quarter 2014 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.

eBay Inc. uses its Investor Relations website at http://investor.ebayinc.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor, in addition to following press releases, SEC filings, public conference calls and webcasts.

Update:
See Thursday's Newsflash newsletter.

Comments (40) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: pace306 This user has validated their user name.

Thu Jul 17 09:18:06 2014

hmmm eBays GM were only %6 .... was that after the %2 you forced me to give Paypal, the %10+ in the categories I sell in and the unknown percentages you get from VERO (verowatch.com charges manufactorers rto rid eBay of sellers of goods they dont want on eBay), shill bidding, and the percentage slice from the Global Shipping Scam aka PB in Kentucky?

Never believe ANYTHING eBay says - if they tell you the sun is yellow and the sky blue - go out and check for yourself - chances are JD is charging GOD himself/herself/itself for those colors to be there AND if GD refuses to pay - JD will hide the sun ...

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: the paper gallery This user has validated their user name.
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Thu Jul 17 09:41:46 2014

Donahoe can say what ever he wants, the real problem is ebay not listening to the dealers who use it.. the slowness of growth has nothing to do with the security breach….fees are killing ebay.

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: maxmad This user has validated their user name.

Thu Jul 17 09:56:08 2014

Looks like the slaughter of ebay sellers  will continue, for another quarter,

Carefully planned, and engineered, ebay will continue to ruin many more good sellers livelihoods, they will take and take away whatever they want, whenever they want, it will continue to get worst for the seller, and better for ebay, there is ABSOLUELY NOTHING any sellers can do about, you can rant, complain, get upset, cry, blog, Facebook, until you are blue, or even  leave, it will not make one bit of difference to eBay's bottom line,

it's a proven FACT, that ebay the site is exterminating the noise, and it's WORKING, even yesterdays responses from their two clowns jeff and biff is a prime example of this attitude, ebay is managing to spin it however they please because they are hiding behind PayPal profits.

They always say if you can't beat them join them,  

I am almost considering buying some stock !!!

 

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

This user has validated their user name. by: The End

Thu Jul 17 10:41:17 2014

"...diluted... ", indeed...

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

This user has validated their user name. by: The End

Thu Jul 17 10:44:01 2014

FACT : I can make more money mowing Donahoe's lawn, than I can as a seller on Ebay.

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: simerivergun This user has validated their user name.

Thu Jul 17 11:23:28 2014

It is strange that my business is down 75% from 2013 and Ebay is just coasting along.

Ebay's Free auction listings might result in sales, but not completed sales because the majority of the buyers do not pay and are not forced to pay.  With Buy It Now venue immediate payment is required on my site.

Auctions tie an item up for one week, you get the bottom feeders bidding and Ebay wants things to start at 99 cents.  

Ebay is a failure and come August 20,2014, all those people who are praising Ebay will probably be out on their rears.  Stay alert!  Foreign buyers who have a feedback score of ''0'' are allowed to shop on Ebay and leave negative feedbacks.  There are so many buyers on Ebay (foreign and domestically) that nearly every other person has a feedback score below 50.  How is that progress.  The Big Sellers are NOT buying on Ebay.  They are now buying off line for cheaper.  I have over $100,000 of inventory that I cannot sell.  My invisibility started May 1, 2014--I am a TRS plus!  My daughter got her TRS plus last month and her business is now non existent.  Ebay does not want to pay out the 20% ''gift'' to TRS plus people, therefore we become ''invisible'' because our items do Not come up to the top in the Search Engines anymore.  Ebay's glitch is contrived by the program writers.  Once gone from view, no sales can be made, and it feeds upon itself.  

Other sellers have reduced the price of their items to entice buyers, and they just use cheap junk so a profit can be made.  Dropping the price does not keep the item at the previous quality.  Things are purchased for 16 cents each instead of $6.00 each, and in my line of charm bracelets, other sellers are selling their completed items with 20 charms for $99.00.  The base price is $70.00, the fees are 15% and the ''cheap'' charms added give the seller a $17.00 profit at best. This does not cover shipping, paper, time or effort or the cost of running your little home shop.  Times are bad, Ebay is bad and the failure of Ebay is at hand.  You cannot do your base dirty monetarily and expect that your base will Not turn on you.

11 Main here I come!  Suzi  

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: Xander This user has validated their user name.

Thu Jul 17 11:26:04 2014

As individuals and business owners, we are each only one, which in itself, can make little change but as a group, we can have a larger impact.

Many have said how ebay does not care if good sellers volunteer to leave. I disagree- they do care but they will not do anything to show it and the degree in which they care is indeed very small however, they should be very afraid of massive quantities of sellers leaving as this would undoubtedly affect the marketplace.

Ebay has reached a saturation point where those who are capable of selling there have at one point tried ebay or are using it now so there isn't a large pool of new sellers to bring on board.

There are plenty sellers who continue to adapt to ebays toxic selling environment but if/when they or their business become sick, they too at some point could quit the platform- no sales, no purchases, nothing.

The only real way to fight back is to stop using ebay and to encourage others to do the same. Although I am just one, I have encouraged the majority of my associates and friends to close their ebay accounts and buy elsewhere as well as other sellers to abandon ebay and paypal.

I have no problem reading the complaints of how ebay treats their sellers as they are only venting about how their business has been hurt by ebay however, to vent verbally alone will not impact ebay. The only way to lay a hurt on them is for more and more people to stop using their services and yes, each and every one of us can make a difference.

For those who think they can't make a difference, think twice. An army of ants has been known to carry significant weight for the betterment of the herd.

All sellers need a plan on how to survive and grow their sales however today's ebay is no longer a stable, viable business partner and probably will never again be one. Long term sellers know this.

To continue to use ebay year after year is like staying in a marriage where both people hate each other, yet they don't divorce. Pure lunacy.

To those who authentically want to make a difference, vote with your feet and leave the platform completely. No selling or buying and get your friends to do the same. Just like friends don't let friends drive intoxicated, friends don't let friends perpetuate the harm ebay inflicts upon so many worldwide.

Its the simple law of cause and affect- If thousands of sellers get a handful of people to stop using ebay and paypal, it will impact them. The only way to stop tyranny is to cut off the source of the income- we are the source and can make a difference!

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: Runs.With.Scissors This user has validated their user name.

Thu Jul 17 12:35:47 2014

Here it is, for all to see:

 For the past 6 months, (actually longer than that), the ebay officers are exercising their ebay stock options and selling.  ALL SELLING!

 NONE of them buying to hold.  Hello, Wall Street!!! ..... Does this look like a growth stock sign to you, if top ebay insiders don't want to hold it?    ROTFL!   It's toxic I tell ya!

 Will noob ''analysts'' just keep drinking the kool-aid and getting those free lunches, free tickets to sporting events, and any other (whatever else) promotional items?

           ebay Insider Trading
http://finance.yahoo.com/q/it?s=EBAY+Insider+Transactions

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: Moonwishes This user has validated their user name.
Web Site

Thu Jul 17 13:50:09 2014

What a joke especially in light of the fact that JD, in Ina's other article, was blaming the security breech for slower growth. What will he blame it on next quarter? Every quarter there is another excuse. I stopped selling there years ago when they made my store invisible and then I stopped buying when I continued to get junk from the sellers. I stopped using ebay long before the security breech, although I finally gave up trying to change my PW since I never got the email from ebay after requesting it multiple times.

I agree with the others in that big corporations like ebay can make those numbers mean anything they want, but I do think it is telling that they are selling out their stocks in ebay.  

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

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

Thu Jul 17 17:35:42 2014

After reading The Ho's comments about The Hack, The Ho reacts precisely as we should expect a narcissistic sociopath to react.

1. He shows no empathy or sympathy for the 145 million users whose personal data has been substantively compromised.

2. He issues no apology for ebay's substandard security measures nor makes any commitment to improve them.

3. The Ho is annoyed because European governments dare hold ebay accountable for their slipshod security and delayed response.

4. He fails to identify which ebay employee was responsible. Could it be someone in C level management? Did this executive recently leave ebay?

Instead he's only concerned with stock value and how much The Hack will affect his free shares and bonuses.

This criminal sociopath -- who willfully and illegally withholds crucial information from SEC filings -- is without any redeeming qualities whatsoever.

Ho, follow Ken Lay's lead.

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: ebay refugee camp This user has validated their user name.

Thu Jul 17 18:10:45 2014

Things will never change as long as wall street stock brokers are in charge of ebay.
I cannot believe that these guys receive millions for this level of irresponsible management.
Ebay had better embrace the honest sellers they have or they are going down.
It is absurd that this management team finds it necessary to continually threaten sellers with programs and policies that are clearly not helpful at all.
Right now good honest hard working sellers are being threatened, cheated and maligned because of policies that are making it too difficult for sellers.
Ebay has embraced thieves and shoplifters and practically begs them to open a case and most of those are bogus. Why?
Sellers will leave in droves again, ebay has lost millions in lost revenue because of sellers leaving the site, those sellers are getting sales elsewhere now.
Ebay has barely kept up with the natural growth of online shopping as a whole, while other large online shopping retailers have have shown huge gains ebay has floundered, it it were not for Paypal this company would be done.
It is all because of bad policy and instead of listening to the honest sellers ebay has decided to punish and threaten them and call them noise because somebody cannot admit they are wrong and a FAILURE!.
Google, security breach, Bull! it is the current management team, they are chasing away sellers, those sellers are buyers too, and those sellers have loyal buyers.
Ebay is buying its own stock so they do not have to answer to anyone  as to why these stupid ignorant policies are in place.
What a mess, this will end badly.

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

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

Fri Jul 18 02:31:53 2014

"What I would like to know is why is Ebay buying its own stock back to the tune of a couple of billion dollars to date?"

Me too. Certainly, Wall Street has not rewarded them for doing so, and so, relatively speaking, eBay stockholders are still going backwards; I can’t help thinking about Pierre’s windfall wealth, that would have been, instead of the current ~6 billion, ~32 billion, had he in 2007 sold his eBay stock and bought Amazon stock …

eBay Inc, where the incompetent mingle with the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: LightWing This user has validated their user name.

Fri Jul 18 08:56:51 2014

Ebay Execs Are DUMPING Their Stock...

http://finance.yahoo.com/q/it?s=EBAY+Insider+Transacti
ons


CEO
to the tune of....$40 MILLION+

Senior VP of HR to the tune of...$30 MILLION +

And the list goes on.

As I have often said on these Boards..."This Does Not Bode Well.".

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: MovinOn This user has validated their user name.

Sat Jul 19 22:22:02 2014

When the execs have little faith in ebay, why should anyone else?

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: comet This user has validated their user name.

Sat Jul 19 23:57:58 2014

Yes it is evil EVIL Europe that is causing the PROBLEM.

If only THEY would stop being MEAN to lil' Johnny!

Imagine--a whole CONTINENT where he is forced--FORCED---to comply with RULES.

And to come clean about the BREAK IN.  (Oh sorry--The Hack)

Must be the source of his deepest nightmares--that European type laws will come HERE and force him and his henchmen to HAVE to disclose what goes ON in San Jose.

HE might need another sabbatical to THINK about this.  

Damned European media!  Daring to REPORT on HIS company!  And calling it a FAILURE!

He'll teach THEM a thing or two!

After --ya know--a Thinking Day---or 365.  

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: pjjc1 This user has validated their user name.

Mon Jul 21 09:13:34 2014

I see there is no mention of the new retroactive defect system and google debacle. My overwhelming feeling towards Ebay is fury and helplessness.I just feel sadness for myself and all the sellers.We are being blamed for things not under our control (the US Post Office) and for practices we did not know were going to be turned into defects retroactively.  After a couple of months of absolutely glowing reviews, my seller defects have gone up, not down.   I am just at my wits end with this company.I have not had near the number of sales because of their gross mismanagement.I cancelled transactions for my customers who did not know how, thinking I was helping my customers.Defect.I have people who have moved and I have reshipped at my own expense.
Defect. I don't even know if I have the heart or the patience to call customer service.They are just infuriating.I have done my best, as have many of you.  I go from top rated to almost on the cusp of below standard globally.  If I lose my international customers I am done.  I want to cancel my store in September and I probably will.  I am on other venues.  At this point, I just want to get rid of my stock and quit selling and buying all together. It is not worth being held captive and squeezed by a totally unethical company.Shame on Ebay.  I don't depend on this income but many disabled people in general, disabled veterans, and those who cannot work outside the home do.  I hope you are proud of what you have done to people who have built your company and pay your lavish salaries.  

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: pjjc1 This user has validated their user name.

Mon Jul 21 09:14:29 2014

Oh, and thanks for covering up the hack for months.  Nothing like loyalty to your membership.  

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: Santini This user has validated their user name.

Mon Jul 21 19:48:20 2014

Hey pjjc1, it wasn't a hack, it was a "password reset!" ;)

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: geminidenver This user has validated their user name.

Tue Jul 22 01:48:27 2014

The reaason ebay post a profit, is the millions or billions of dollars held daily, in high interest rate compounded daily accout from sellers who were scammed into being below standard or suspended for a ridiculous reason and they hold the money for as little as 4-6 days up to 21 days.  They keep changing my hoops and are STILL holding my money when I have near perfect everything.  IT makes me so freaking mad and they do not release the money in bulk, they release it almost as it is available to them... like there is not enough money to cover balances in paypal with a linked debit card.

Perminate Link for eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent   eBay Releases Second Quarter 2014 Earnings, Revenue up 13 Percent

by: jefftoons This user has validated their user name.

Tue Aug 12 11:29:48 2014

I asked this Buyer why he opened a case against me. This was his response. ebay is purposely doing this. Do you think this guy will EVER use ebay again? I doubt it. This really is the end. This will just drive people off ebay. Buyers and sellers. We all have choices, it's just how much pain are we willing to put up with. I'm done. I'm selling my invenetory, I won't replace it (from ebay) then I'm moving on. It'll be a relieve when I don't have to put up with this crap anymore.

Dear toon-city,

Dear Toon-city, sorry contact you this way, but eBay just block all comunications with sellers.
I bought a few days ago the Disney and Mickey in the Fog photo.
Since I received the info that was already delivery at my home, and since  i still don't get it, I begin to try contact you.
Undortunately I Click on the report, because I tought  it should be a way to contact you about any trouble, and not to file an oficial complain against you.
Sorry about this, but eBay gives no option on this.
But the case is I still don't get the photo, despite the USPS info.
It looks like a USPS problem. Can you help me on this case?
Again sorry about the case, and l Let me know how to fix the situation with eBay.
Regards


- rogersordi

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