Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Apr 22 2015 16:26:12

eBay Reports First Quarter Earnings 2015

By: Ina Steiner

Sponsored Link

eBay's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2015 earnings, you can view the full release with tables on eBay's investor relations website.

eBay Inc. Reports First Quarter Results
Global commerce platform and payments leader eBay (Nasdaq: EBAY) today reported that revenue for the first quarter ended March 31, 2015 increased to $4.45 billion. GAAP earnings were $626 million or $0.51 per diluted share, and Non-GAAP earnings were $943 million or $0.77 per diluted share, driven by transaction growth and expense control.

eBay Inc.'s commerce and payments ecosystems continued to increase the role they play in global commerce, but the strengthening dollar significantly impacted first quarter results and reduced the 9% organic growth rate to 4%. Revenue growth was negatively impacted by foreign currency translation at eBay and PayPal by 7 pts and 3 pts respectively, with benefits from foreign currency hedging partially offsetting the impact at PayPal. Additionally, weaker local currencies in some markets led to reduced demand for goods in export-oriented markets like North America, impacting the growth of cross border trade.

"We had a strong first quarter, with eBay and PayPal off to a good start for the full year," said eBay Inc. President and CEO John Donahoe. "I feel very good about the performance of our teams at eBay and PayPal. Each business is executing well with greater focus and operating discipline as we prepare to separate eBay and PayPal into independent publicly traded companies. We are moving forward with clarity and speed, with a smooth separation expected in the third quarter. We are deeply committed to setting up eBay and PayPal to succeed and to deliver sustainable value to our shareholders."

PayPal net total payment volume (TPV) grew 18% in the first quarter to $61 billion, with Merchant Services volume up 26% and on-eBay volume down 1%. Payment volume through eBay Marketplaces was $15 billion, representing 24% of total TPV. Revenue grew to $2.1 billion. PayPal gained 3.6 million new active accounts in the quarter, up 11% to 165 million, and processed more than 1 billion transactions in the quarter, up 24%. PayPal deepened its customer engagement with transactions per active account increasing to 23 in the quarter and monetization per active account increasing to $49. The strong, steady growth of PayPal's customer base coupled with rising engagement reflects the growing popularity and relevance of the PayPal value proposition globally. We announced two acquisitions to bolster and accelerate PayPal's ability to partner with merchants and deepen its trusted relationship with consumers. The acquisition of Paydiant helps PayPal extend its mobile value proposition to the offline world for merchants and consumers while its acquisition of CyActive strengthens PayPal's security capabilities and will act as the foundation of PayPal's new security center of excellence.

eBay Marketplaces gross merchandise volume (GMV) declined 2%, with the strengthening dollar significantly impacting results. In the U.S., GMV was up 2%, while International volume was down 4%, producing $2.1 billion in revenue. On a fx-neutral basis, International GMV was up 7% and global GMV was up 5%. Marketplaces gained 2.1 million new buyers in the quarter, up 8% to 157 million. While active buyer growth continued to decline on a rolling 12-month basis, we are seeing signs that our business is stabilizing, with both three-month active buyer growth and FX neutral GMV growth flat at 5% on a sequential basis. Sold item growth improved sequentially to 9%. We are continuing to invest to improve buyer and seller experiences and provide consistency across devices while building platform capability to improve traffic.

eBay Enterprise enabled its clients to grow same store sales 10% and generated gross merchandise sales (GMS) of more than $1 billion. Revenue grew to $288 million. We continue to explore strategic options for eBay Enterprise. It is a strong business and a leading partner for large retailers, managing mission critical components of their e-commerce initiatives.

Business Outlook
2015

Second quarter 2015 — The company expects net revenues in the range of $4,400 - $4,500 million with GAAP earnings per diluted share in the range of $0.44 - $0.49 and non-GAAP earnings per diluted share in the range of $0.71 - $0.73. GAAP earnings include an estimate of separation and restructuring costs of $130 - $150 million.
Full year 2015 — The company expects net revenues in the range of $18,350 - $18,850 million with GAAP earnings per diluted share in the range of $2.17 - $2.32 and non-GAAP earnings per diluted share in the range of $3.05 - $3.15. GAAP earnings include an estimate of separation and restructuring costs of $350 - $400 million.

Related stories:

Strong Dollar Hurt eBay Marketplaces Cross-Border Trade in Q1 - link

eBay Makes Big Promises to Small Sellers as SEO Penalty Still Stings - link




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Readers Comments

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

by: sasikat9 This user has validated their user name.

Wed Apr 22 18:45:56 2015

I only wish I could cook my books like Fleecebag and not have the IRS stiffing around.

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

This user has validated their user name. by: Rexford

Wed Apr 22 18:55:53 2015

When does he leave?

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

by: Volvo351 This user has validated their user name.

Wed Apr 22 19:29:27 2015

"Moving forward with clarity and speed?"  Gee, whatever happened to The Hoe's famous "disruptive innovation" or innovative disruption" or just plain disruptive disruption?  

Oh, don't you just love how these brainiacs expropriate words like "ecosystem?"  I mean, really, WtheF are they talking about?  

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

Wed Apr 22 19:30:09 2015

And "Blah, Blah, diluted Blah..."
I don't see it.
There is next to nothing interesting to buy there now. There are only a very few pages where there were once HUNDREDS of pages of great stuff; and that's just in one category.
There's No Way there was any growth of any kind in Ebay's sector; with or without PayPal.
It most likely shrunk 40%. Looks like it; feels like it.
Somebody : put this miserable, deceptive Ebay load out of its misery.

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

by: Volvo351 This user has validated their user name.

Wed Apr 22 19:33:00 2015

BTW, don'tcha just love how you have to get almost to the LAST paragraph to find out that the fleaBay "platform" SANK by 2 percent? You get a ton of Happy Talk from The Hoe - who's jumping ship to PayPig - but the truth of eBay's imminent death is buried.  

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This user has validated their user name. by: toolguy

Wed Apr 22 19:48:13 2015

I sold more in the 1st Q of this year then I did all of last year.

The eBay machine is roaring back to life.

 

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by: E-pins This user has validated their user name.

Wed Apr 22 20:17:10 2015

@ toolguy

Howdy ""Ebay Pays My Bills""

http://www.ecommercebytes.com/C/abblog/blog.pl?/comment
s/2009/6/1245249191.html/8/70
http://www.ecommercebytes.com/C/letters/blog.pl?/pl/2010/8/1280866883.html

Were
you not banned from here John?

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by: gizmo This user has validated their user name.

Wed Apr 22 20:53:50 2015

I made more in my first 3 months on ecrater , than I made in my last 6 months on deadbay. Decline , decline , decline , dead.
How much of all that went back to buyers, at the cost of sellers? Lost & Found ? Their #s dont jive !

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

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

Wed Apr 22 20:54:07 2015

LIERS, LIES, AND MORE DAMNED LIES.

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

by: pace306 This user has validated their user name.

Wed Apr 22 23:04:46 2015

Stupid stupid Wenig ... read some of our responses to Ina's great columns and learn something.

1) "Wenig explained his plan in response to the problem: "We'll move toward becoming the world's first online global marketplace to use structured catalog data at scale for all listings."

I said it and so did others - stop forcing your sellers to do YOUR JOB and license ICECAT or simliar service. This will solve MOST Vero copyright picture and text violations and harassments. It will also correct the eBay catalog which is WRONG In alot of places (and Ive gotten in trouble because of it!)

2) Fixing your catalog will NOT fix your Google issues - stop lying.

Google penalized eBay for its SEO practices a year ago, and it's still having a negative impact on eBay growth, according to eBay Marketplaces President Devin Wenig.

During eBay's post-earnings conference call on Wendesday, Wenig explained his plan in response to the problem: "We'll move toward becoming the world's first online global marketplace to use structured catalog data at scale for all listings."

See #1 and this answer has nothing to do with the question asked (pay attention STUPID Wenig)

3) After the challenges faced in 2014, and following two sequential quarters of declining growth, eBay's first quarter results are encouraging, he said. "We are certainly not ready to declare victory over last year's SEO and password-reset challenges, but we are making progress."

Those are NOT the reasons for eBays declining Marketplace issues.

Its your DEFECTS Program, your FORCED RETURNS Program, your treament of sellers - especially their migration to ANYONE else besides eBay - but mostly Amazon.

4) He promised them improved seller tools, "unmatched access to more data, and more balanced predictable policies and standards."

OK smarty pants - LETS SEE WHAT ABUSIVE QUASI ILLEGAL PROGRAMS YOU ROLL BACK TO ACCOMPLISH THIS DRIVEL.

5) Mr. Wenig said eBay would focus some of its growth efforts on drawing more small and medium businesses to the site..... DUH WE TOLD YOU SO 3 YRS AGO. But with your current policies "IT AINT GONNA HAPPEN".

6) On the seller side, small- and medium-size merchants and brands represent 70 percent of the global retail market. REALLY? If you know this then WHY do you treat your sellers so badly?

This guy is full of BS. Hes telling people what they want to hear - not what he WILL do .... I dont believe him till the defects, abusive negatives and High Frequency Returns program are GONE. Oh and if he digs up Rich M and the magical unicorn Seller Protection Program - I'll stop telling every living breathing person on this planet how bad eBay is. Hows that Wenny ?

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by: TeddyElectron This user has validated their user name.

Wed Apr 22 23:50:48 2015

Just wondering how this is all will be reflected in the upcoming screw-small-sellers seasonal update.

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by: mindelec This user has validated their user name.

Thu Apr 23 00:19:20 2015

"Mr. Wenig said eBay would focus some of its growth efforts on drawing more small and medium businesses to the site...."

please explain how the latest outrageous fee increase will draw small and medium sellers to the site.

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

Thu Apr 23 00:19:28 2015

Did we just hear ebay signal the demise of the collectibles and vintage categories? The comment was: "Sellers will recognize this as eBay is forcing them to add Product Identifiers to their listings, such as UPC and ISBN code". Hard to have a 200 year one-of-a-kind item have a UPS code!

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by: cayenna This user has validated their user name.

Thu Apr 23 00:39:49 2015

I also never heard anything about eliminating the feedback abuse.
I want that taken care of, also want less fees, more visibility, I want eliminated other peoples products on my listing pages that I am paying for! And the list goes on... Why not ask us small sellers what we want; it's always what they think we want and a bunch of more of the same... Funny how they say a few words that are supposed to sound good and now we are supposed to come running back... Until I can actually make a profit instead of my entire profit margin being stolen; I'm not getting too excited.

Perminate Link for eBay Reports First Quarter Earnings 2015   eBay Reports First Quarter Earnings 2015

by: Joey4711 This user has validated their user name.

Thu Apr 23 00:50:09 2015

How in the hell is live auctions helping us as sellers? It is competing against us, have you noticed that the live auctions appear at the top of the search?

Every dollar spent on the live auctions is a 1.00 out of potential sales. It is interesting as well that wonderful Ebay indicates the buyer experience is so important but with live auctions none of their policies are in force so that means the buyer can get screwed by the auctioneer but Ebay gets paid. Who does the ebay buyer blame the auctioneer or Ebay?  Thus they might not come back to the site.duh...but that is Ebay go after any money possible, put ads of competing sites on their site, next let's have Ebay put Amazon ads on their site....come on draw more business away from Ebay so you can make a couple of dollars now instead of later. No wonder there stock has lagged compared to Amazon.

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This user has validated their user name. by: gettingby

Thu Apr 23 00:57:27 2015

@successm - No demise of collectibles and vintage categories. They are excluded from this requirement. The documentation to determine categories affected can be found here: http://pages.ebay.com/sellerinformation/news/springupdate2015/product-
identifiers.html#FAQ1-9

It
states, in part, ''Note: Sellers who list used, collectible, vintage, or one-of-a-kind items are not required to include these unique product identifiers at this time.''

I am encouraged by Wenig's statement that seems to be overlooked -- ''Going forward, we intend to play our game, and no one else’s.'' I'm hopeful that he means eBay will no longer attempt to imitate the game plans of other sites such as Amazon.

Just my 2 cents.

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by: donald This user has validated their user name.

Thu Apr 23 01:19:21 2015






Lets give the man a chance guys. They will continue to loose if they don't get it right...



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by: Enough Is Enough! This user has validated their user name.

Thu Apr 23 01:24:51 2015

Wenig: ''There is $100 billion of value is trapped in people's closets and garages - and that's just in the U.S.''

Why would anyone sell it on a site who lets buyers cheat, borrow, and steal?? And the seller will be the poor broke soul at the end of the day.

And how much of this $100,000,000,000 worth of stuff is in a box or package with a UPC code or other product identifier?

As always, this company is talking out of both holes at once. Just like the kid on the playground who changes the rules of the game when he is losing.

The Amazonization attempts of ebay continue....... And why not? Bezos is knocking their pud in the mud!!

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by: LinneyPinney This user has validated their user name.

Thu Apr 23 01:54:40 2015

First of all, I am a skeptic. My ebay business is nothing like it was. Almost gone. I pretty much left, keeping a few things in my store in case ebay is ever  fixed.

I will tell you that Mr. Wenig did ask the sellers what they want. I was part of the forum. I won't say much about it because I feel that it is up to the Group that hosted the forum to create press releases if they so desire.

Within this forum sellers let him have it. He brought In other people in his team and they fielded questions and concerns.

I was a bit disppointed that some issues were not addressed, but many were. He seemed to understand that sellers want to run their own businesses. He acknowledged that we are not happy with policies, traffic, sales and pretty much the things that we complain about here.

Years ago ebay flew me to their headquarters as part of a program called voices. Meg worked with us directly and listened to concerns. This worked for ebay for years. Wenig somewhat mirrored this open forum attitude and was open to many of the points made.

Donohoe has made a hot mess of ebay and I don't think that it can recover. They lost what they had, threw it away and now there is so much competition. Early on, new platforms would pop up and fail. Nobody could touch ebay. It was magic! Now the customers have dispersed and ''personalized search '' keeps customers going back to places that they have visited and searches are not what they were in the past.

The truth is that Google is in control, Google is the king.

I think that Wenig wants to be the man that fixed ebay and I will keep and open mind and watch what he's DOES after he assumes his position as CEO.

I hope th at eBay is not too far gone, I really do. But, the writing has been on the wall for a long time.
If Wenig can pull this off and restore our businesses I am sure that we will all be happy to sing his praises.  

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by: comet This user has validated their user name.

Thu Apr 23 02:25:50 2015

IF Wenig can fix what Nutmeg and DonoWhore BROKE---I will personally compose an anthem to him.

However--while I am semi=willing to give him the benefit of the doubt--look who his "Master"  has been for lo these many years.  Maybe he was NOT in agreement of the Ho's policies--and maybe he should SAY SO then.

So far the latest round of absurd "Raise awareness and lower prices"  by LOWERING the number of items we can LIST is NOT going to raise awareness of the BRAND;  and if by "Lowering prices"  you mean RAISING PRICES on many items--well then hows that working for you?

IF the company was NOT satisfied with the Whores management they would not have needed to send him out of the plane with a 26 MILLION DOLLAR Golden Parachute.  They just coulda--fired his ass. Surely any litigation over this would have cost US much LESS in the long run. I am pretty sure most Judges and juries would agree that running the company you were hired to PROMOTE into the GROUND is not a good thing and very irresponsible=-==-even in California this is frowned upon.

And yes---this is OUR MONEY being spent here--WE earned it NOT the HO and Co.  

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