PayPal Drives up eBay Revenues Again in Q1

eBay has posted some very positive financial results for the first quarter of 2011, beating analyst expectations, largely due to the continued success of its PayPal unit. Revenue saw a 16 percent increase year over year and income grew by 20 percent.

"In the first quarter, PayPal continued to drive strong growth globally, eBay sharply accelerated growth in the U.S. and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments. The year is off to a strong start," said eBay Inc. President and CEO John Donahoe.

First quarter revenue grew to $2.5 billion, up from $2.2 billion in Q1 2010. As has been the case for the past few years, PayPal has been leading the way, though eBay's Marketplaces unit, aka the auctions site, also saw a 12 percent rise in revenue year over year.

PayPal though grew by 23 percent, going from $809 million in Q1 2010 to $992 million in the same period this year. PayPal is close to reaching 100 million active users and now represents 39 percent of eBay's revenue, the company said.

"PayPal grew active registered accounts 16% year over year, ending the quarter with 97.7 million and adding approximately one million active accounts per month for the sixth consecutive quarter," eBay said.

"PayPal’s net total payment volume grew 28% to $27.4 billion in the first quarter of 2011 compared to the same period of last year," it added.

Net income was also on the rise at eBay, the company made $475.9 million in Q1, a 16 percent increase. Non-GAAP net income was greater, $619 million, but it was only a 12 percent rise from the previous year.

eBay expects an equally strong second quarter and estimates revenues at $2.55 billion to $2.65 billion. The company has revised its full year estimates as well, it now expects to bring in $10.6 billion to $10.9 billion.