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eBay Earnings Beat Wall Street By A Penny As Top Line Drives Gains

Thursday January 23rd, 2014 - 1:31PM


For the fourth quarter ended December 31, eBay Inc. reported that revenue increased 13% to $4.5 billion. Net income on a GAAP basis came in at $850 million, or 65 cents per diluted share, and non-GAAP net income of $1.1 billion, or 81 cents per diluted share, up 16% and 14%, respectively, driven primarily by top-line growth, the company said.

Earnings beat a Thomson Reuters average analyst estimate by a penny.

"We feel good about our performance and strong finish in the fourth quarter, with the holiday shopping season clearly showing how online, mobile and other omni-channel commerce capabilities are changing how consumers shop and pay," said eBay Inc. CEO and president John Donahoe. "Mobile exceeded expectations for the year. Our total mobile commerce volume grew 88 %, with eBay reaching $22 billion and PayPal hitting $27 billion in 2013. Mobile added more than 14 million customers. PayPal and eBay together create an incredibly strong global commerce ecosystem for consumers and merchants, and we continue to see tremendous growth opportunities ahead."

Total company Enabled Commerce Volume increased 22% in the fourth quarter, accelerating one point, to $61 billion in commerce volume for the company’s merchant partners and brands, eBay noted.

For the full year 2013, revenue grew 14%, non-GAAP earnings per share grew 15% and GAAP earnings per share grew 9%, according to the company.

For the full year, ECV increased 21%, accelerating two points to $212 billion. Both Marketplaces and PayPal achieved record mobile results in 2013, the company asserted, each exceeding $20 billion in mobile volume. Mobile users represented 40% of eBay Inc.'s 36 million new users and accounts in 2013, contributing $35 billion in ECV, up 88%, the company maintained.

Marketplaces gross merchandise volume excluding vehicles advanced 13% in both the fourth quarter and full year to reach $76.5 billion in 2013, driven primarily by growth in domestic business. Revenue grew 12% in the fourth quarter and the full year to a 2013 total of $8.3 billion. Marketplaces added 4.6 million active users in the quarter and ended the year with 128 million. U.S. business grew 14% in the fourth quarter and 15% for the full year, generating $30.4 billion in 2013 GMV, eBay related. International business gained 12% in the quarter and in 2013, generating $46.1 billion in GMV for the year excluding vehicles. In 2013, 40% of fourth quarter GMV involved a mobile device touch point, eBay pointed out. Mobile volume commerce generated $22 billion for the full year, the company stated. Fixed price GMV excluding vehicles advanced 19% globally in the fourth quarter and represented 73% of total GMV, the company added.

In addition, eBay Enterprise contended that it generated $1.8 billion in Merchandise Sales in the fourth quarter and $4.2 billion for the full year, up 11% in the quarter and 14% for the full year. The operation produced $1.1 billion in revenue for the full year with growth pressured by merchant and channel mix and reduction in take rate, the company acknowledged. At the same time, eBay Enterprise enabled its clients to grow same-store sales 13% in the quarter and 15% for the full year.