eBay Makes $2.8 Billion in Q2, $1 Billion from PayPal

eBay has posted great financial results for the second quarter of the year. Revenue is up 25 percent and is above analysts' expectations. PayPal continued to post great results, its first billion dollar quarter, but eBay's traditional Marketplaces unit also saw a big increase in revenue.

The company brought in $2.8 billion in Q2 2011, a 25 percent increase over last year's $2.2 billion. The results are above what analysts were estimating, a revenue of $2.6 billion.

Non-GAAP net income is up as well, it saw a 19 percent increase in Q2 reaching $631 million.

However, GAAP net income was down 31 percent, from $412 million to $283 million, due to the closure of the GSI acquisition.

eBay bought GSI for $2.4 billion and costs associated with the transaction dug into the company's profits in the last quarter.

"Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating," said eBay Inc. President and CEO, John Donahoe.

"We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce," he added.

"We will partner with retailers of all sizes to help them grow in a rapidly shifting, technology-driven multichannel commerce environment, and we will help consumers shop and pay anytime, anywhere, any way," he said.

PayPal revenue went past $1 billion in this quarter for the first time, it was $1.07 billion to be exact, a 31 percent increase over the $817 million it made in Q2 2010.

The Marketplaces unit, the eBay website made $1.63 billion, a 19 percent increase over the previous year. Things are starting to look good for the Marketplaces unit, which has been struggling in recent years. It may still be too early to tell, but eBay may actually succeed in positioning the site as an ecommerce hub rather than an auctions site.