E-commerce market watchers expected a strong first-quarter report from eBay, and the company delivered, posting a 20-percent rise in profits.
eBay Inc. reported net revenue was nearly $3.3 billion for the quarter, up 29 percent compared to the same quarter of 2011. GAAP net income was $570 million, up 20 percent.
PayPal, eBay’s payments processor subsidiary, led the performance. Its revenue grew 32 percent to $1.3 billion on total payment volume of $33.8 billion. Payments on eBay represented roughly a third of the total, and were up 17 percent in the quarter.
The Marketplaces unit, which includes eBay.com, continues to grow steadily. Net marketplace revenue grew 11 percent in the first quarter to $1.7 billion. Gross merchandise volume, excluding vehicles, grew 12 percent compared to the same quarter a year ago, while the number of items that sold increased 17 percent, the company reports.
eBay’s efforts to refashion the marketplace as a retail venue appear to be paying off, with fixed price merchandise representing 64 percent of first-quarter GMV, according to eBay.
eBay said it expects second-quarter revenue to be significantly higher than the same period of 2011.