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.
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.