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.




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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

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

Wed Jul 16 15:44:38 2014

Liar, liar, athletic cups on fire!

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

by: sasikat9 This user has validated their user name.

Wed Jul 16 16:58:12 2014

Sorry Ming but my profits are up and so are my fees....Hence so would Ebays

I'm sure I'm not the only one.

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

by: lucask7 This user has validated their user name.

Wed Jul 16 17:27:18 2014

What a bunch of altered B.S. And the corruption goes on!!!

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: Rexford

Wed Jul 16 19:03:23 2014

Of course they are. Who would expect anything less.  LOL

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

by: rhawk This user has validated their user name.

Wed Jul 16 20:35:18 2014

Anyone remember Enron?

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: iheartjacksparrow

Wed Jul 16 20:55:21 2014

Almost to a person, people continue to comment here how their sales are way down, yet eBay's profits continue to be way up.  

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

Wed Jul 16 21:47:27 2014

Always amazed at the folks who show up here at no other time except when ebay needs cheerleaders or defenders.

Sellers who make more money are a distinct minority of those whose first language probably isn't English or who reside in corporate head office enclaves.

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

Wed Jul 16 21:47:27 2014

Always amazed at the folks who show up here at no other time except when ebay needs cheerleaders or defenders.

Sellers who make more money are a distinct minority of those whose first language probably isn't English or who reside in corporate head office enclaves.

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: Ina

Wed Jul 16 21:48:20 2014

I just added a link to my Newsflash article at the bottom of this post.

Very interesting conference call eBay had with analysts about impact of security breach, password reset, and Google SEO changes on eBay Marketplaces Q2 performance.

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.

Wed Jul 16 22:10:45 2014

ALWAYS remember that %99 of what eBay tells you is a lie.

With eBay you HAVE to read in between the lines, since they cant tell the truth - even if they tried.

1) "Europe is "definitely more privacy sensitive and the EU - there was all sorts of talk from legislators and regulators and so the whole thing got a lot more media," he said."  - in the USA we got a pass since JD knows Obama and hence Holder - so we didnt get into any trouble, In the EU where we cant help get judges elected, cant violate local, state and federal trade laws - it was a bit tougher - we couldnt just BS our way through it all.

2) "growth of eBay's Marketplaces business was hampered by the password reset it required for all users in the second quarter following a security breach" - Less people then EVER trust eBay, and the continued harassment and assisted theft from sellers is finally comming to a head. We didnt think anyone would ever believe what sellers say, but the fact that we handled the breach and the Google incident proved that sellers have been right all along about how eBay operates.

3) "eBay's strategy: "couponing, seller incentives, and increased marketing spend," Swan said." - So, we are going to go back to the only playbook we have/know - and by seller incentives we mean force 90 returns or loose your TRS status, by increased market spending we mean giving ourselves another bonus in Q4, and by couponing we mean offer sellers free listings that most times never work, will never be seen, and will produce no sales - and email sellers about Bill Me Now (Rip ME Off Now) so we can make money on the interest.

Shall I go on?

eBays lack of improvements are predictable due to failures at the top. It would help if JD and Wennig at least read an ecommerce for Dummies book before making decisions.

All of the reporting is smoke n mirrors - good luck Sothebys.

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: Ric

Wed Jul 16 22:52:00 2014

Integrity and ethics continue to be set aside in San Jose.

The one percenters continue their manipulations and deceptions, Wall Street continues to accept them as facts, so it's business as usual for another 90 days.

Personally, I would like to see just one Wall Street analyst ask eBay to admit that they do not in any way account for the voluminous number of returns they encourage.

Virtually every other retailer deducts the retail value of returned goods from their gross sales, but not eBay.... eBay demands sellers accept returns due to the fact that said returns negatively impact sellers, but do not have any effect on eBay financials.

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

by: Maureen This user has validated their user name.

Wed Jul 16 23:17:21 2014

Oh pleeese!
93% is a valid number to report. I agree it can't be everyone.
Without remembering all the years I have been on eBay what all the figures would actually be, that might be accurate because every day I log in thru google and it tells me what the market is worth. Most days it's in the negative ( which BTW is a good day to list your items) Somehow it always manages to get a Buyer. It is so bizarre.  

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

by: Paul W This user has validated their user name.

Wed Jul 16 23:31:45 2014

''The one percenters continue their manipulations and deceptions, Wall Street continues to accept them as facts''
Wall Street knows exactly what's going on at eBay, as evidenced by eBay's stock price.  As opposed to some of the commenters who have no idea what they're talking about.  eBay may have you deceived; Wall street, no.

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

by: alaska This user has validated their user name.

Wed Jul 16 23:38:49 2014

What is killing eBay is the thousands of free listings, which is swamping eBay with stuff that buyers have already seen a dozen times or more. I stopped running my weekly searches for vintage collectibles a while back because there is not enough new material compared to the masses of relists. eBay should allow buyers to filter out items that have been relisted twice, or relisted 5 times, or relisted 10 times. Let us set that parameter for each search. I wouldn't mind seeing an item relisted a few times in case I missed it the first or second time, but I don't have the time to wade through long lists of items that have been relisted a dozen or more times.

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

by: mastoyshop This user has validated their user name.

Thu Jul 17 03:45:05 2014

Seriously (I think that is my word of the month) ebay whines about profit.. gee only 6% well what is 6% of 4.4 BILLION dollars.. Seriously.. Ebay needs to buck up and be happy for their 4.4 million when many are jobless, homeless and without meals.

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

by: Tiffee Jasso This user has validated their user name.

Thu Jul 17 04:52:58 2014

I wanted to say something about folks who feel Ebay should narrow the listings and search down to just the things they can buy cheap and make a profit on and do away with all the rest, but I won't.

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?  

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: Rexford

Thu Jul 17 06:23:30 2014

"Donahoe explained that the media in Europe is "definitely more privacy sensitive and the EU - there was all sorts of talk from legislators and regulators and so the whole thing got a lot more media," he said."

Well at least in one part of the world legislators and regulators stand up and take notice.  In the USA, it seem that anything eBay do is ok.  Smug John has them in his hip pocket.

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

by: FREDDY This user has validated their user name.

Thu Jul 17 07:41:19 2014

Anyone who has their own business or works for a company at a top level will know how easy and often books are manipulated to receive the desired outcome.

ebay is no exception. ebay needs to show growth and profitability in order to keep the stock price up. How else will JD and boys get the huge bucks???

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 07:51:37 2014

Too funny just As predicted..  it's no surprise,

Just as the JDeeHoe planned, get rid of the noise on ebay the site, to clear the path for the Paypal riches, I am sure he is laughing at every angry ranting seller,  

You just wait and see what this butcher does to ebay sellers next, your only seeing the beginning, just wait and see,

As mentioned before, if you want change for ebay sellers, and the ebay site, BOYCOTT PAYPAL when you buy ANYTHING online, that's the golden egg, they will protect to the bitter end, and do whatever it takes, it's all they got.

 

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: Basset

Thu Jul 17 09:11:18 2014

When wall street, big business, government or media paint a rosy picture on the economy without explaining it is either pure spin or that it mostly affects the top 10 percent - I hear faint echoes of Big Daddy's drawl:


''What's that smell in this room? Didn't you notice it, Brick? Didn't you notice a powerful and obnoxious odor of mendacity in this room?... There ain't nothin' more powerful than the odor of mendacity... You can smell it. It smells like death.''

- credit to Richard Brooks, James Poe, based on Tennessee Williams play, Cat on a Hot Tin Roof.

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