July 20, 2005
EBay tops earnings and revenue expectations in Q2
PayPal turns in a strong performance
Recommend ThisEBay exceeded Wall Street's revenue and earnings expectations in its 2005 second quarter, ended June 30, helped by strong performance in the U.S. and Germany and in its PayPal unit, the San Jose, California, online marketplace said Wednesday.
EBay reported net revenue of $1.086 billion, up 40 percent from last year's second quarter and above consensus expectation of $1.042 billion from analysts polled by Thomson First Call.
Net income rose 53 percent to $291.6 million, or $0.21 per share. On a pro forma basis, it was up 55 percent to $307.2 million, or $0.22 per share, topping consensus expectations of $0.18 per share.
Pro forma net income excludes certain items, including stock based compensation expenses and related payroll taxes, as well as amortization of acquired intangible assets and related income taxes, according to eBay.
Net revenue broke down as follows: $423.6 million came from eBay marketplace activity in the U.S., up 27 percent, while $418.8 million came from eBay marketplace activity abroad, up 51 percent, and $243.9 million was generated by the online payment unit PayPal, up 51 percent.
EBay ended the quarter with 157.3 million confirmed registered users, up 38 percent, and with 64.6 million active users, which are defined as users on the eBay platform who bid, bought, or listed an item within the previous 12-month period, up 34 percent.
Meanwhile, new listings were 440.1 million, up 32 percent. Gross merchandise volume, the total value of all successfully closed listings on eBay's trading platforms, was $10.9 billion, a 36 percent increase.
The PayPal online payment unit closed the quarter with 78.9 million total accounts, a 56 percent increase, while total payment volume, the dollar volume of payments initiated through the PayPal system, was $6.5 billion, a 49 percent increase.
Looking ahead, eBay expects net revenue for the entire year to be in the range of $4.340 billion to $4.410 billion. In the third quarter, eBay expects net revenue to be between $1.045 billion to $1.070 billion. The company expects to finish the year with earnings per share or either $0.77 or $0.78, up from previous guidance of between $0.71 to $0.73. In the third quarter, eBay now expects earnings per share of $0.18.
In terms of pro forma earnings per share, the company expects them to be either $0.82 or $0.83 for the full year, up from a previous estimate of between $0.76 and $0.78, and to be $0.19 in the third quarter.
White Paper
D2D Virtual Tape Library Replication Primer
This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.
Download now »
White Paper
An Alternative to Virtualization for Datacenter Cost Savings
Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.
Download now »
White Paper
Why Your Firewall, VPN, and IEEE 802.11i Aren't Enough to Protect Your Network
The emergence of WLANs has created a new breed of security threats to enterprise networks.
Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation
White Paper
Bringing the Edge to the Data Center
Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.
Download now »
- Removing Barriers To Better Server Virtualization Efficiency | White Paper
- Windows Phones and Unified Communications | White Paper
- Tackling the Top Five Network Access Control Challenges | White Paper
- Opportunities and Challenges with the Convergence of Data Center Networks | White Paper
- Network Operating System Evolution | White Paper
Sign up to receive Business Resource Alerts
Make IT work as one. Register for Novell BrainShare 2010. Complimentary Energy Efficiency Kit - Cut Energy Costs NowRestrict internet access with GFI WebMonitor™. Now 30% Off! www.gfi.com/web-filterToday’s IT means business. New eBook shows you how to align your IT investments.A new level of interoperability. Make IT Work As One at novell.comLimited-time offer: Save up to $100 on Polycom phones. 64-page prescriptive guide to security, compliance, and IT operations.Learn about Foundations of Green IT, from CTO Marty Poniatowski802.11n Drives an Architectural EvolutionSee IBM CloudBurst's self-service user interface in action
Return on Information: Google Enterprise Search pays you back. Get the facts.Analytics: Use your data to drive insights that enable better decisions.See how AT&T can help protect your network. Make IT Work As One at novell.comHP ProLiant G6 Servers. Perform like a superstar, Save like an accountant.HP ProLiant G6 Servers. Perform like a superstar, Save like an accountant.Unified Communications: Thoughts, Strategies and Predictions. Join the discussion.Increase UPS efficiency without sacrificing protectionIn less than 45 minutes, Palisade Systems protects your dataA smarter approach to IT is needed. That smarter approach is IBM CloudBurst.
