eBay Inc. Announces Third Quarter 2007 Financial Results
By Ina Steiner
eBay released financial results for its third quarter ended September 30, 2007. It reported a GAAP operating loss of $938 million in Q3-07 and a GAAP net loss as a result of the previously announced goodwill impairment charge related to eBay's acquisition of Skype.
Non-GAAP operating income was $593 million, representing a year-over-year increase of 28% and 31% of net revenues. Non-GAAP net income was $564 million, or $0.41 earnings per diluted share, representing a year-over-year increase of 53%.
The company purchased approximately 14.8 million shares of its common stock at a total cost of approximately $500 million during the quarter out of its authorized stock repurchase program of up to $2 billion by January 2009.
"During the quarter we made significant progress against our business unit strategies which resulted in record net revenues of $1.89 billion, a 30% year-over-year increase," said eBay President and CEO, Meg Whitman. "eBay International, PayPal Merchant Services, StubHub, classifieds and our advertising businesses all performed above our expectations."
eBay broke out results by its marketplaces, payments and communications businesses. The Wall Street Journal quoted eBay CFO Bob Swan stating, "PayPal continues to outgrow eBay auctions."
Marketplaces net revenues totaled a record $1.32 billion in Q3-07, representing a year-over-year growth rate of 26%. eBay users posted a total of 556 million listings in Q3-07 representing a year-over-year decrease of 5%. Those listings generated Gross Merchandise Volume (GMV) of $14.40 billion in Q3-07, representing a year-over-year increase of 14%.
PayPal's growth was driven by its Merchant Services business, the company said. PayPal net revenues totaled a record $470 million in Q3-07, representing a year-over-year growth rate of 35%. Global Total Payment Volume (TPV) was $12.22 billion in Q3-07, representing a year-over-year increase of 34%. PayPal Merchant Services contributed $5.38 billion globally to the $12.22 billion in global TPV in Q3-07, representing a year-over-year increase of 61%.
Skype net revenues totaled a record $98 million in Q3-07, representing a year-over-year growth rate of 96%. Skype had 246 million registered user accounts at the end of Q3-07, representing a year-over-year increase of 81%.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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