14 DAY TRIAL // eBay has revealed its financial report for the last quarter and the company beat analyst expectations once again thanks to a very strong quarter from PayPal. The payments division has been eBay's main growth generator and is helping the company post good results quarter after quarter.
"[eBay] reported that revenue for the fiscal third quarter ended September 30, 2010, increased 1% to $2.2 billion, or up 10% excluding Skype, compared to the same period of 2009," eBay announced in a statement.
"The company recorded third quarter net income on a GAAP basis of $431.9 million, or $0.33 per diluted share, and non-GAAP net income of $530.6 million, or $0.40 per diluted share, representing a 14% increase excluding Skype, compared to the same period of 2009," eBay added.
The numbers speak for themselves, a ten percent increase in revenue, when not accounting for Skype, in a year is pretty solid at eBay's scale.
Looked at another way, eBay was able to recoup for the loss of Skype, arguably never much of a revenue earner for the company, in just one year.
PayPal is to 'blame' for much of the growth, eBay's main marketplaces business increased its revenue by just 3 percent year-over-year to reach $1,411 million in revenue.
The payments business on the other hand grew by 23 percent to $838 million in revenue in the last quarter, within reach of the marketplaces division. In fact, 70 percent of the transactions on eBay were handled via PayPal.
Overall, eBay managed to beat estimates which saw earnings of $0.37 per share. The company brought in revenues of $0.40 per share in Q3 2010. The good results pushed stock prices up close to 9 percent.
“We delivered strong third quarter results, with great performance at PayPal and stable results at eBay,” John Donahoe, eBay President and CEO, said.
“PayPal gained share globally and eBay continued to improve key metrics. Our company is strong and we are managing our global portfolio to balance strengths, challenges and opportunities, invest in growth and deliver consistent performance,” he added.