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eBay Revenue Up 15 percent in Q3

PayPal, Marketplaces, new users spur growth.

eBay reported a strong third quarter on Wednesday, with revenue rising again by double digits.

According to officials, third-quarter revenue jumped 15 percent, compared to the third quarter of 2011, reaching $3.4 billion. That was in line with what company executives expected at the end of the second quarter.

eBay also reports third-quarter net income was $597, a 22-percent increase, year-over-year. Non-GAAP net income was $718 million, a 14-percent increase from last year’s third quarter.

“We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth,” says John Donahoe, eBay Inc.’s president and CEO. “Mobile continues to be a game changer for us, and we continue to be a clear leader in mobile commerce and payments. With our strong portfolio and global reach, we are consistently demonstrating our capabilities to help consumers shop anytime, anywhere, and we are enabling retailers of all sizes to compete in a rapidly evolving, multichannel commerce environment.”

Growth across business units

We are enabling retailers of all sizes to compete in a rapidly evolving, multichannel commerce environment

PayPal ended the quarter with 117.4 million active accounts—a 14-percent increase compared to the same time in 2011. Its revenue grew 23 percent, year over year, while its net total payment volume was up 20 percent, year over, year, reaching $35.2 billion, eBay reports.

eBay Marketplaces saw an 11-percent year-over-year increase in gross merchandise volume, excluding vehicles, and reached $16 billion, officials note. Its revenue was up 9 percent, year over year, helped by growth in the U.S. and Asia Pacific.

GMV in the U.S., excluding vehicles, was up 16 percent, year over year, while international GMV was up 8 percent, year over year, eBay notes.

Mobile draws new users

The company adds that the number of active eBay users also increased during the third quarter. This measure was up by 10 percent compared to the same time last year. That’s the fastest growth since 2007. Mobile proved helpful here, as 800,000 new users came to the site through mobile devices.

eBay expects net revenue of between $3.85 billion and $4 billion during the fourth quarter of 2012. For the entire year, officials say net revenue should be between $13.95 billion and $14.1 billion.

About the author

Olga Munoz
Olga Munoz is editor of TheOnlineSeller.com. In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.



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