Mobile commerce drives eBay growth in Q3
SAN JOSE, Calif. — eBay, which reported income and revenue growth for its third quarter, is seeing increased strength in its mobile business as more customers are turning to their smartphones to shop.
eBay reported that revenue for the third quarter ended Sept. 30, increased 32% to $3 billion, compared with the same period of 2010. The company reported third-quarter net income on a GAAP basis of $490.5 million, or 37 cents per diluted share, and non-GAAP net income of $628.2 million, or 48 cents per diluted share. For the prior year, net income on a GAAP basis was $432 million, or 33 cents per share, and non-GAAP net income was $531 million, or 40 cents per share.
“Our company reported another strong quarter, with eBay, PayPal and GSI each performing well," said eBay Inc. president and CEO John Donahoe. "Mobile commerce continues to accelerate as consumers change the way they shop and pay. We expect eBay mobile commerce to generate almost $5 billion in merchandise volume this year and PayPal mobile to exceed $3.5 billion in payment volume. Mobile is one way online and offline shopping are blending into a single commerce environment. We are focused on enabling commerce, helping consumers shop anytime, anywhere, and being the commerce partner of choice for retailers of all sizes."
PayPal ended the quarter with 103.0 million active registered accounts, a 14% increase year-over-year, eBay reported. PayPal revenue increased 32% year-over-year driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption. PayPal's net total payment volume grew 31% to $29.3 billion in the third quarter of 2011 compared with the same period of last year.
The company's Marketplaces business also delivered a strong third quarter performance, eBay reported. Gross merchandise volume excluding vehicles increased by 16% year over year to $14.7 billion. U.S. GMV excluding vehicles increased 14% year-over-year, driven by continued improvements in customer experience on the site and growth in key shopping categories, the company said.
The company's GSI business, which was acquired in the second quarter of 2011, contributed $202.6 million in revenue for the third quarter. GSI generated $608 million in global ecommerce merchandise sales during the quarter.
For the fourth quarter for 2011, eBay expects net revenues in the range of $3.2 billion to $3.350 billion with GAAP earnings per diluted share in the range of $1.47 to $1.53 and non-GAAP earnings per diluted share in the range of 55 cents to 58 cents. GAAP earnings per diluted share includes the gain from the sale of our remaining equity interest in Skype.
For the full year, eBay now expects net revenues in the range of $11.5 billion to $11.6 billion with GAAP earnings per diluted share in the range of $2.42 to $2.48 and non-GAAP earnings per diluted share in the range of $1.98 to $2.01.