eBay had a strong second quarter with revenue that increased by double digits compared to the same time last year.
eBay’s revenue reached $3.4 billion—a 23-percent increase compared last year’s $2.8 billion total. That was in line with projections from experts. Growth of eBay Marketplaces and PayPal helped the company reach the high numbers. In fact, eBay Marketplace had its best performance of the year, according to John Donahoe, eBay’s president and CEO.
Marketplaces, which includes eBay.com, had a gross merchandise volume, excluding vehicles, of $16 million—a 10-percent increase from the 2011 second quarter. PayPal’s revenue increased by 26 percent, year over year, helped by an “increased penetration on eBay” and more adoption of the service, eBay reports. PayPal’s total net payment volume increased by 20 percent, to $34.5 billion.
Marketplaces takes center stage
eBay adds that the number of items sold on eBay increased by 20 percent compared to 2011’s second quarter, and that GMV in the U.S., excluding vehicles, increased 14 percent during the second quarter. This was helped by an increase in the number of users and more people shopping via mobile devices.
Internationally, Marketplaces’ GMV increased by 8 percent. Fixed-price GMV grew around the world by 13 percent, year over year, and represented 65 percent of total GMV, eBay reports. The growth made Donahoe and other eBay officials very happy.
“Our entire company is strong, but we’re particularly pleased with eBay Marketplaces, which delivered the strongest organic growth in gross merchandise volume, excluding vehicles since 2006,” Donahoe adds.
Mobile a rising star
He notes that mobile continues “to be a game changer.” In fact, the company now expects eBay and PayPal mobile to each transact $10 billion in volume this year.
“That’s more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago,” he continues. “Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay.”
eBay expects to see gains again next quarter, when net revenue is projected in the range of $3.3 billion to $3.4 billion. Over the entire 2012, eBay expects net revenue of between $13.8 billion and $14.1 billion.
